Mr Price Remuneration Stats<\/strong><\/td>| Total Guaranteed Package<\/strong><\/td> | Total remuneration<\/strong><\/td><\/tr><\/thead> | Highest-paid employee<\/strong><\/td> | R10,117,000<\/td> | R52,570,000<\/td><\/tr> | Lowest-paid employee<\/strong><\/td> | R63,000<\/td> | R63,000<\/td><\/tr> | Average remuneration of employees<\/strong><\/td> | R140,000<\/td> | R158,000<\/td><\/tr> | Median remuneration of employees<\/strong><\/td> | R79,000<\/td> | R82,000<\/td><\/tr> | Ratio of top 5% vs bottom 5% of employees<\/strong><\/td> | 14<\/td> | 19<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n | Fallout over NKD deal<\/h2>\n\n\n\nThe massive pay disparity comes amid a significant drop in Mr Price’s share price following the acquisition of European retailer NKD. <\/p>\n\n\n\n The deal was valued at \u20ac487.00 million (about R9.6 billion in December when the deal was announced) and was funded by a combination of cash and debt.<\/p>\n\n\n\n NKD has over 2,000 stores in Germany, Austria, Italy, Croatia, Slovenia, the Czech Republic, and Poland. The company generated net sales of \u20ac684.57 million in 2024.<\/p>\n\n\n\n The reaction to the deal was largely negative, with R6 billion wiped off Mr Price\u2019s market cap on the first day of trading. <\/p>\n\n\n\n Analysts were concerned about NKD’s relatively weak financials, including low profit margins, as well as the massive amount of debt Mr Price was taking on for the deal. <\/p>\n\n\n\n Mr Price\u2019s balance sheet now includes R7 billion in interest-bearing loans following the acquisition. <\/p>\n\n\n\n While the group’s share price has risen somewhat since its strong financial yearly results were announced, it is still down roughly 20% year over year. <\/p>\n\n\n\n For the 52 weeks to 28 March 2026, Mr Price Group increased total revenue by 4.2% to R42.7 billion, but its earnings were impacted by once-off transaction-related costs relating to the NKD deal.<\/p>\n\n\n\n When using normalised figures, which exclude those costs, basic, headline and diluted headline earnings per share increased by 8.0%, 7.7% and 8.0%, respectively.<\/p>\n\n\n\n On a statutory basis, basic, headline and diluted headline earnings per share of 1,449.5 cents, 1,453.9 cents and 1,411.8 cents, increased by 2.3%, 2.1% and 2.4%, respectively.<\/p>\n\n\n\n The group also declared a final dividend of 592.8 cents per share, maintaining a pay-out ratio of 63%.<\/p>\n\n\n\n Although the group said household income improved in 2025, the discretionary retail sector was not an immediate beneficiary of this improvement, whereas the prior year’s results benefited from the two-pot system. <\/p>\n\n\n\n Despite the challenging year, the group still opened 196 new stores. For FY2027, the group will invest R1.1 billion in capex in South Africa, with 180 new stores planned. <\/p>\n\n\n\n Due to the rise of structural debt, the group noted that it will focus on balance sheet and treasury management. <\/p>\n\n\n\n In Europe, NKD\u2019s capital expenditure is forecast at \u20ac24m (R454 million) and incorporates about 150 new stores.<\/p>\n\n\n |
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