While MRP delivered strong results for FY18, we believe the spike in its gross profit margin may be temporary and that its GP margins may not be sustainably higher than the recent average of 41%. We illustrate, by way of detailed product costing, the extent to which MRP may have used currency gains to grow GP margin.
We show that MRP has still not fully recovered the unit volumes lost in the FY17 period, and that MRP’s turnover growth in FY19 may be challenged due to peculiarities in the trading calendar for the year ahead.
