Diluted HEPS up 6.5% y-y to 468ps, with dividend of 304cps
(+7.1% y-y). Dividend cover remains at 1.5x.
Turnover growth of 5.1% y-y, with Apparel +4.9% y-y, Home +4.3% y-y and Telecoms +13.1% y-y. Improved momentum from Q2, continuing into 2H25.
GPM increased 110bps from 38.3% in 1H24 to 39.4% in 1H25, due to lower markdowns.
Expenses to sales ratio rose from 30.1% to 31.3%, with expense growth high at 9.2% y-y (due to space growth investment).
Operating margin dropped from 12.0% in 1H24 to 11.8% in 1H25.
High growth in stock (+15.3% y-y) due to earlier stock intake.
Lower capex intensity of 1.8% to sales (1H24: 2.8%).
Strong cash position, increasing from R1.1bn to R2.2bn. MRP remains debt-free.
Management believes the economic outlook has improved and expects pressure on consumers to ease.
Sales for October +11.5 y-y, improving to 14.7% y-y in the first 2 weeks of November.
