A NNUA L FIN A NCI A L STATE M E NTS

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24 For the financial period 2 April 2023 - 30 March 2024

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Y OU R VAL U E C H AMP I ON

The Numbers - Contents

01 Statutory information 02 Primary statements
3 Approval of the annual financial statements 23 Consolidated and separate income statements
3 Company secretary statement 24 Consolidated and separate statements of comprehensive income
4 CEO and CFO responsibility statement 25 Consolidated and separate statements of financial position
4 Report of the directors 26 Consolidated and separate statement of cash flows
7 Audit and compliance committee report 27 Consolidated and separate statement of changes in equity
15 Independent auditors report
21 Shareholder information

03 Notes to the financial statements

32 1. Basis of preparation Liabilities and commitments
32 2. Adoption of new standards and 73 19. Lease obligations and lease liabilities
changes in accounting policies 75 20. Interest-bearing loans
77 21. Retirement benefits
Results of operations 80 22. Capital committments
34 3. Revenue 81 23. Contingencies and commitments
36 4. Profit before finance costs and finance income
37 5. Segmental reporting Taxation
38 6. Dividends to shareholders 81 24. Taxation
39 7. Earnings per ordinary and 83 25. Deferred taxation
B ordinary share
Equity structure
Working capital 86 26. Share capital
40 8. Inventories 90 27. Capital reserves
41 9. Trade and other receivables 91 28. Treasury share transactions
45 10. Trade and other payables 92 29. Foreign currency translation reserve
46 11. Reinsurance assets and liabilities
49 12. Cash and cash equivalents Group composition
49 13. Notes to the statements of cash flows 93 30. Consolidated entities
94 31. Operating subsidiaries
Operating assets 95 32. Business combinations
51 14. Property, plant and equipment
55 15. Intangible assets Other notes
59 16. Right-of-use assets 95 33. Related parties
60 17. Long-term receivables 97 34. Directors’ emoluments
97 35. Subsequent events
Financial risk 97 36. Going concern
60 18. Financial risk management

CHAPTER

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

CEO and CFO Responsibility Statement

for the year ended 30 March 2024
Each of the directors, whose names are stated below, hereby statements, having fulfilled our role and function as executive
The Numbers confirm that: directors with primary responsibility for the implementation
and execution of controls within the combined assurance

Approval of
(a) the annual financial statements set out on pages 23 to 97, model pursuant to principle 15 of the King Code;
fairly present in all material respects the financial position,
financial performance and cash flows of the issuer in terms (e) where we are not satisfied, we have disclosed to the audit

the Annual
of IFRS; committee and the auditors any deficiencies in design and
operational effectiveness of the internal financial controls
(b) to the best of our knowledge and belief, no facts have been and any fraud that involves directors, and have taken the
omitted, or untrue statements made that would make the necessary remedial action; and

Financial annual financial statements false or misleading;

(c) internal financial controls have been put in place to ensure

(f) we are not aware of any fraud involving directors.

Statements
that material information relating to the issuer and its
consolidated subsidiaries have been provided to effectively
prepare the annual financial statements of the issuer;

(d) the internal financial controls are adequate and effective MM Blair P Nundkumar
and can be relied upon in compiling the annual financial Chief executive officer Chief financial officer

The preparation and presentation of the annual financial statements and all information included Report of the Directors
in this report are the responsibility of the directors. The annual financial statements were prepared Nature of business The remaining 30% equity is held by management and will be
in accordance with the provisions of the Companies Act and comply with International Financial The main business of the group is omni-channel retail acquired over the next three years ensuring that continuity is
Reporting Standards (IFRS), as issued by the Accounting Practices Board and its successors, distribution and financial services through 2 900 corporate- maintained. This period can be extended by mutual agreement
owned stores, eight franchised stores in the rest of Africa and its between the parties. The transaction closed on 3 October
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
online channels. The retail chains focus on clothing, footwear, 2022 with the effective date of 4 October 2022. Results were
the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council sportswear, sporting goods, accessories and homeware, while consolidated from this date into the group’s results.
and the JSE Listings Requirements. In discharging their responsibilities, both for the integrity and the financial services division provides credit, insurance and
cellular products and services. Financial results
fairness of these annual financial statements, the directors rely on the internal controls and risk The financial results of the company and the group are set
management procedures applied by management. Corporate governance out in the statements of comprehensive income on page 24.
The directors subscribe to the values of good corporate
governance report as set out in the King IV report on Corporate Dividends
Based on the information and explanations provided by Ordinary and B ordinary dividends
management, the internal auditors and comments by the Governance for South Africa 2016 (King IV). By supporting
King IV the directors have recognised the need to conduct It is the group’s policy to make two dividend payments each
independent auditor on the results of their statutory audit, the year, an interim in December and a final in June/July.
directors are of the opinion that: the business with integrity and to account to stakeholders in
accordance with IFRS. Refer to the board report on pages
125 - 162. Interim: A cash dividend of 283.5 cents per share (2023:
• the internal controls are adequate while noting 312.5 cents per share) was paid on 18 December 2023 to
improvement areas identified by assurance providers and NG Payne MM Blair
Chairman Chief executive officer Retail calendar shareholders registered on 14 December 2023.
management’s remedial action The group reports on the retail calendar of trading weeks
• the financial records may be relied upon in the preparation incorporating trade from Sunday to Saturday each week. Final: A cash dividend of 526.8 cents per share (2023: 447.1
of the annual financial statements Accordingly the results for the financial year under review are cents per share) has been declared payable on 08 July 2024
• appropriate accounting policies, supported by reasonable Company secretary statement for a 52-week period from 2 April 2023 to 30 March 2024 to shareholders registered on 05 July 2024.
and prudent judgements and estimates, have been applied I hereby certify that the company has lodged with the (2023: 52-week period 3 April 2022 to 1 April 2023).
• the annual financial statements fairly present the results Companies and Intellectual Property Commission all such Solvency and liquidity test
and the financial position of the company and the group. returns as are required of a public company in terms of the Business Acquisition The directors have performed the required solvency and
Companies Act and that all such returns are true, correct and There were no acquisitions in the current financial year ending liquidity tests required by the Companies Act of South Africa.
The annual financial statements are prepared on the going up to date. 30 March 2024.
concern basis and nothing has come to the attention of the Consolidated entities
directors to indicate that the company and the group will not In the prior year, effective 4 October 2022, the group acquired The aggregate amount of group profits and losses after
remain a going concern. 70% of the equity of Blue Falcon Trading 188 (Pty) Ltd (“Studio taxation attributable to consolidated entities was:
88 Group”). The Studio 88 group is the largest independent
These annual financial statements as at 30 March 2024 have retailer of branded leisure, lifestyle and sporting apparel and
been prepared under the supervision of the chief financial footwear in South Africa. It is a founder-led business which
officer, Mr P Nundkumar CA (SA), MBA. J Cheadle has been operating in Southern Africa since 2001 primarily R’m 2024 2023
Company secretary through its 890 stores. The business owns and operates retail
Profits 732 80
The annual financial statements set out on page 23 to 97, 24 June 2024 outlets that offer clothing, footwear and accessories, trading
which have been prepared on the going concern basis, were through Studio 88, SideStep, Skipper Bar, John Craig and Losses (110) (153)
approved by the board of directors on 24 June 2024 and were other chains. 622 (73)
signed on their behalf by:

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Net shareholders’ equity Interest in shares of the company

Authorised and issued share capital
There were no changes to authorised and issued share capital.
At the financial year end the directors interests in the company’s issued shares as follows:
Subsequent events Ordinary shares
Refer to note 35.
2024 2023
Other than the dividends declaration, no material events affecting the annual financial statements have occurred between the Direct Direct Held by Total % Shares % Direct Direct Held by Total % Shares %
financial year end and the date of this report. beneficial beneficial associate used as beneficial beneficial associate used as
(restricted) security (restricted) security
Directorate
Mark Blair 317 954 1 037 895 - 1 355 849 0.53 - - 363 938 1 048 887 - 1 412 825 0.55 - -
For the current year the following changes were noted:
Praneel 2 132 218 095 - 220 227 0.09 - - - - - - - - -
• Harish Ramsumer appointed independent non-executive director of the board and member of the Audit and Compliance Nundkumar
Committee (ACC), and Risk and IT Committee with effect from 1 July 2023.
Mark Stirton 9 127 105 296 - 114 423 0.04 - - 62 374 395 953 - 458 327 0.18 - -
• Richard lnskip appointed independent non-executive director of the board with effect from 1 July 2023.
• Keith Getz retired by rotation as a non-executive director, chairman of the Social, Ethics, Transformation and Sustainability Stewart Cohen 15 875 - 51 588 67 463 0.03 - - 15 875 - 44 588 60 463 0.02 - -
Committee and a member of the Remuneration and Nominations Committee (Remnomco), effective 30 August 2023.
Steve Ellis 4 376 237 623 - 241 999 0.09 - - 7 332 253 674 - 261 006 0.10 - -
• Steve Ellis retired by rotation as a non-executive director, effective 30 August 2023.
• Neill Abrams appointed independent non-executive director from 1 September 2023 (and steps down as alternate director to Keith Getz - - 20 000 20 000 0.01 - - - - 20 000 20 000 0.01 - -
Stewart Cohen).
Refilwe 132 - - 132 - - - - - - - - - -
• Mark Stirton stepped down as Chief Financial Officer (CFO) effective 31 July 2023 and Praneel Nundkumar was appointed Nkabinde
CFO effective 1 August 2023.
• Mmaboshadi Chauke resigned as independent non-executive director and member of the Audit and Compliance Committee Total 349 596 1 598 909 71 588 2 020 093 0.79 - - 449 519 1 698 514 64 588 2 212 621 0.86 - -
with effect from 30 September 2023. Total ordinary issue share capital 256 791 496 256 791 496
• Refilwe Nkabinde appointed independent non-executive director of the board and member of the Audit and Compliance
Committee with effect from 1 December 2023.
B Ordinary shares

Emoluments 2024 2023

Details of emoluments paid to executive and non-executive directors are set out in the remuneration report in the integrated
Direct Indirect Held by Total % Shares % Direct Indirect Held by Total % Shares %
report pages 163 to 204 and note 26 and note 34.
beneficial beneficial associate used as beneficial beneficial associate used as
security security

Stewart Cohen - 3 044 056 - 3 044 056 44.81 838 204 12.34 - 3 044 056 - 3 044 056 44.81 838 204 12.34

Total - 3 044 056 - 3 044 056 44.81 838 204 12.34 - 3 044 056 - 3 044 056 44.81 838 204 12.34

Total B ordinary issue share capital 6 792 786 6 792 786

Ordinary B Ordinary

Issued share capital 2023 256 791 496 6 792 786

Issued share capital 2024 256 791 496 6 792 786

Notes:

1 FY2024 direct beneficial has been split between - 4. Indirect beneficial holdings by Stewart Cohen includes 838 204 B
1.1 actual direct beneficial; and ordinary shares which is used as security.
1.2 direct beneficial (restricted) (shares held through the group’s
various share schemes refer to pages 172 - 204 of the 5 The following director changes took place during the reporting
remuneration report for further information). period and their change of shareholding was subsequent thereto:
5.1 Mark Stirton stepped down on 31 July 2023
2 The following Forfeitable Share Plans (FSP) shares were forfeited 5.2 Steve Ellis retired on 30 August 2023
during the FY2024 reporting period due to performance hurdles
not being reached: 6 Except as disclosed above, none of the directors’ holdings were
2.1 M Blair 272 638 shares subject to security, guarantee, collateral or similar arrangement
2.2 M Stirton 296 699 shares as envisaged in terms of paragraph 8.61(d)(i) of the JSE Listings
2.3 S Ellis 17 529 shares Requirements.

3 The 3 748 730 B ordinary shares not held by directors and not 7 There were no changes to the above number of shares between
detailed above are held by: the end of the financial year and the date of approval of the annual
3.1 Bobby Johnston’s trusts (947 618 shares) financial statements.
3.2 Laurie Chiappini’s trusts (2 800 912 shares)
3.3 Alastair McArthur (200 shares)

5 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 6

 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

The main impact of the board’s deliberations on the group’s value creation elements is reflected below:
King IV ™ 8 12 13 15
CAPITALS STAKEHOLDERS STRATEGIC PILLARS BUSINESS ACTIVITIES SUSTAINABLE DEVELOPMENT GOALS

H I

M F

S N

KING IV™ GOVERNANCE OUTCOMES Good performance Effective control

Chair Members
Daisy Naidoo retirement by Mark Bowman, Harish Ramsumer, (appointed 1 July 2023, chair from 30 August 2024) Refilwe
rotation 30 August 2024 Nkabinde (appointed 1 December 2023)

Role and scope

The committee is constituted as a statutory committee in the integrity of the annual financial statements and, to the
respect of its duties in terms of section 94(7) of the Companies extent delegated by the board, other external reports issued
Act (71 of 2008) and has been delegated the responsibility to by the group. In doing so, it assists the board to discharge its
provide meaningful oversight of the internal and external audit, responsibility to:
finance and compliance functions. The committee mandate is
published on the group’s website www.mrpricegroup.com. • Safeguard the group’s assets
The committee members, their qualifications and experience, • Operate adequate and effective systems of internal
the number of meetings held and attendance at meetings are controls, financial risk management and governance
detailed on pages 151 - 152 and 135 - 136 of the board report • Issue materially accurate financial reporting information
respectively. and statements in compliance with applicable legal and
regulatory requirements and accounting standards
The committee provides independent oversight of the • Monitor compliance with laws, regulations and adopted
effectiveness of the group’s assurance and compliance non-binding rules, codes and standards
functions and services, with particular focus on combined • Provide oversight of the external and internal audit functions
assurance arrangements (including external assurance
service providers, internal audit and the finance function) and

Key focus areas | FY2024

• Assessing effectiveness of the group’s combined assurance arrangements
• Conducting the suitability assessment of the external auditor and audit partner in relation to Deloitte & Touche’s appointment
for the reporting period
• Overseeing ongoing regulatory, tax, legal, compliance and credit matters
• Considering the impact of the JSE Listings Requirements (LR) amendments on financial reporting and compliance
• Monitoring the effectiveness of internal financial controls to support managements’ internal financial control attestation
• Monitoring compliance activities to ensure no material breaches of relevant legislation
• Monitoring and supporting CFO transition
• Monitoring transition of Deloitte & Touche as external auditors

Audit and Compliance Committee statement

Committee Report The committee is satisfied that it has fulfilled its responsibilities in accordance with its mandate for the 2024 financial year, including
duties in terms of the Companies Act, JSE LR and King IV™.

Having given due consideration, the committee believes and confirms that Praneel Nundkumar, who is the financial director and
carries the title chief financial officer (CFO), possesses the appropriate expertise and experience to effectively fulfil his responsibilities.
The committee is also of the view that the group’s financial function incorporates the necessary expertise, resources and experience
to adequately and effectively carry out its role.

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Integrated Assurance Internal Audit

As depicted on pages 97 - 103 of the integrated report , the enterprise risk management (ERM) process directs the group’s Approach
handling of its major strategic risks. The group continues to work to integrate all assurance efforts that assures the management Mr Price Group operates in a highly volatile, global community where various interconnected forces are driving extensive
of key risks and the accomplishment of group-wide strategic objectives. organisational transformation and, in turn, disrupting internal audit.

The group’s integrated assurance journey sets out to achieve the following: These new demands required new thinking, formulating a value proposition with a different lens on how Mr Price Group earns
• Safeguarding of the group’s strategic pillars and maintains the trust of its stakeholders, changes in mindset, new capabilities and new delivery models. Internal audit therefore
• Optimal and cost-efficient assurance coverage is promoted with coverage directed where the group is at largest risk focused on working more efficiently, creating added value by providing actionable insights in less time with limited resources.
• The group’s stakeholders are better protected as assurance is focused on key strategic risks

A three-year risk-based internal The internal audit plan therefore

Risk ownership is handled by front line managers who have day-to-
audit plan was developed and includes the following focus areas:
First line day ownership and management of their risks and encompass:
aligned to the strategic pillars of
01
of defence • Operating controls
• Direct control and monitoring by management
the group after considering:

• Significant risk areas as identified during the • ERM, business continuity and combined assurance
Dynamic Risk Assessment, Divisional Risk • Internal financial controls (IFC)
A portion of the risk process is under the management and supervision Assessment Process and a dedicated IT Risk and • IT General Controls across multiple systems and
of the risk director. Internal control and risk management procedures Controls Assessment applications

02
Second line are created, implemented, and modified by second-line functions.
This would include risk management within the group as well as duties
• Materiality and the requirements of the
JSE regarding internal financial controls
• External audit support and control self-assessment
• Technology, governance, risk and compliance
of defence such as governance and compliance and encompass: • External Audit requirements and alignment to a
combined assurance approach
• Specialist technology and proactive monitoring
• Fraud risk management
• Risk management
• King IV™ report on corporate governance • Cybersecurity
• Governance and compliance • Focused sessions with all trading divisions to • IT project assurance
understand hotspots
• Consideration of latest and global audit best
practices and KPMG insights
Its significant degree of organizational independence sets this third
• Impact of the new enterprise resource planning
line of defence apart from the first two and encompass:
Third line • Internal audit
system (ERP) and leveraging the use of technology

03
of defence • External audit
• Other assurance providers

Methodology and Independence

KPMG’s internal audit methodology is aligned to the Institute of Internal Audit standards and aims to provide independent, objective
assurance to add value and improve the company’s operations. KPMG confirmed its independence for FY2024.

For the financial year ending 30 March 2024, work performed has been summarised and results reported to the respective board
committees responsible for governance, risk management and internal control processes within the group.

Conclusions
Governance, risk management and combined assurance
Management have progressed well towards the desired risk management maturity level over the past three financial years.
The combined assurance policy outlines the integrated combined assurance process. It translates the policy into a combined
assurance plan to identify the various lines of assurance and assurance providers involved per key risk. A combined assurance
roadmap exists to provide the group with a “24 month and beyond” view to maturing combined assurance. Management are
progressing well in implementing key activities of the roadmap. Internal audit assisted in the mapping process with an aim to
provide board committees with a consolidated view of assurance obtained from the various assurance providers linked to the
significant or strategic risks of the group.

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Internal control processes Compliance

The reviews as per the FY2024 internal audit plan conclude that based on the scope of work and approach followed, the
results indicate improvements are needed within the internal control environment of the group. These results were reported The board is ultimately responsible and sets the tone for compliance in the group. The board is committed to ensuring that
to the divisional board, Audit and Compliance Committee, and Risk and IT Committee on a regular basis during the year. the group complies with the company’s memorandum of incorporation and all applicable laws, regulations and adopted
nonbinding rules, codes and standards in the countries in which the group operates. The board delegates it’s responsibility
Statement by Internal Audit to the committee, which is accountable for setting the direction on how compliance is managed by approving the group’s
For the financial year ending 30 March 2024, after taking into consideration: compliance policy and exercising ongoing oversight of compliance governance.
• The FY2024 internal audit plan
• The scope of the internal audit work and the approach followed Lines of defence
• The limitations of coverage and sampling The committee delegates the implementation and execution of effective compliance management to the group’s senior
• Representations, self-assessments and other information provided by management, management as the first line of defence. The second line of defence is the group’s compliance function, which assists the
board, management and associates in fulfilling their responsibility to comply with applicable compliance obligations by
Except for the following areas which were rated as weak: providing compliance risk management services. High risk compliance areas are included in the group’s annual internal
• IT general controls: Studio 88 and Yuppiechef audit plan with reviews conducted by the group’s outsourced internal audit function as the third line of defence to assess
• Power Fashion store stock take and computer software assurance validation the effectiveness of compliance processes and activities in the group. In addition, KPMG provides assurance on the group’s
all other internal control processes that were reviewed were assessed as acceptable across the group. sustainabilty report .

The ACC has received the plans taken or to be taken by management to remediate the improvement areas noted by internal Regulatory environment
audit and will continue to monitor this implementation and embedment. The complex and demanding regulatory environment in which the group operates, is monitored using regulatory alert systems
for both South Africa and Africa as well as publications by professional and industry bodies and stakeholders. This assists the
compliance function and business to identify material regulatory changes across all countries in which the group operates.
The business impact is also determined and appropriate controls implemented to ensure the group remains in a defendable
compliance position.

External Audit The group’s regulatory universe is reviewed and updated annually by the group compliance and ethics officer. The regulatory
universe is approved by the committee, and the responsibility for compliance with legislation is delegated to senior
Deloitte & Touche was appointed and approved by shareholders in August 2023 as the group’s external auditor for the reporting management. The group compliance function monitors material group and divisional compliance risks, trends and mitigation
period as a result of the decision for auditor rotation for FY2024 following a tender process for selection and appointment of measures. It formally reports to senior management at the quarterly ESG Centre of Excellence board meetings and the board,
auditors for FY2024. The committee is satisfied that Deloitte & Touche is independent of the group. In reaching this conclusion, through the Social, Ethics, Transformation and Sustainability Committee (SETS) regarding compliance matters relevant to the
the committee considered the appointment of Camilla Howard-Browne, the designated partner as appropriate. SETS’s areas of oversight. Annually, senior management and the group compliance and ethics officer provide assurance to
the committee in respect of their delegated areas of responsibility through the legal assurance process.
The committee has considered:
• The extent of non-audit services is minimal and is continuously monitored with no excessive, unusual or unnecessary Financial services
engagements noted which is inline with the group’s non audit services policy which is strictly followed. Mr Price Money, the group’s financial services business, is highly regulated and to manage this, a dedicated compliance officer
operates within the division, reporting to and aligning with the group compliance function. In addition, an external compliance
The committee is of the view that the group received a quality external audit considering the standard of audit planning and officer monitors and provides additional assurance on applicable financial services legislation. Guardrisk as the underwriters
scope of activities that was performed and that this is the first year of audit transition. The audit team assigned to the audit, of the insurance business also provides an element of assurance by conducting reviews of the group’s processes. During the
Deloitte & Touche’s independence, its relationship with stakeholders, understanding of the business, and the extent of non-audit reporting period an automated in-store monitoring process was implemented to monitor compliance more frequently, with
services provided, were further points taken into consideration during the assessment of the audit quality. the first monitoring exercise being conducted for the period ending FY2024. Implementation of compliance measures and
controls is managed within other trading divisions and centres of excellence as part of existing roles as appropriate, guided
The committee met with Deloitte & Touche prior to the approval of this report to discuss the key audit matter, the group’s annual and overseen by the group compliance function.
financial statements, commentary thereon and general matters.

The committee acknowledges the following matters identified by Deloitte & Touche as the key audit matter (see page 15 and
16), and notes the following:
• The recent acquisitions have resulted in goodwill and indefinite useful life intangible assets of R4.6bn being recognised at the year
end. Management has performed the annual impairment test, using discounted cash flow models which are inherently complex
and judgemental in nature due to the level of estimation uncertainty associated with forecasting future cash flows.

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Data protection and cybersecurity

As the custodian of valuable commercial and personal information, the group has a responsibility to protect personal information
of all stakeholders and has continued its journey to mature data protection compliance with the South African Protection of
Personal Information Act (POPIA) during this reporting period. KPMG previously conducted a data protection control review and
the implementation of KPMG’s recommendations continues to be managed by the group compliance function as part of the data
protection project. Being cognisant of the risk of human error in data breaches, ongoing data privacy training is mandatory for all
associates across the business with approximately 78% of associates trained (excluding Yuppiechef and store associates below
manager level). Data protection will remain a high compliance priority with a focus on monitoring compliance with POPIA. Two data
protection breaches were reported to the regulator during this reporting period, one of which has been closed while no feedback
from the regulator has been received in respect of the other. One data protection complaint from a customer was responded to
and addressed by the ethics and compliance officer in her capacity as delegated information officer. To manage cybersecurity risk
and to appropriately respond to cyber-related incidents the group conducted a ransomware simulation and a cybersecurity NIST
assessment with an external provider during the reporting period. The group adheres to the NIST cybersecurity framework as well
as PCI DSS. Cybersecurity training is mandatory for all associates across the business with approximately 73% of associates
trained during this reporting period. There have been no material cyber incidents in the reporting period.

Tax and labour

As previously disclosed, the South African Revenue Service (SARS) issued assessments disallowing certain deductions that
were claimed by the group during the 2015-2020 tax periods and has included certain receipts in taxable income for the same
years. All assessments have been disputed by the group and are still in varying stages of the dispute resolution process.

There are no material labour compliance matters to report for the reporting period.
More information
Information on anti-bribery and corruption, lobbying and political contributions, public policy development, responsible marketing
and product safety is in the group’s sustainability report.

No material non-compliance
The committee is satisfied that there was no material non-compliance regarding environmental, human rights and occupational
health and safety legislation, with no regulatory fines, settlements, penalties or other monetary losses incurred during the
reporting period.

Key compliance focus areas | FY2024 Future compliance focus areas

• Implemented recommendations identified during the • Implement remaining recommendations identified during the
KPMG data protection review KPMG data protection review
• Monitored financial services legislation with a focus • Implement recommendations identified during the KPMG
on updating the risk management and compliance compliance maturity review including relevant recommended
programme and ensuring the FICA amendments are improvements to the group compliance policy and framework
implemented due to the inclusion of credit providers • Data protection internal audit review to be conducted
as accountable institutions by KPMG
• Compliance maturity review conducted by KPMG • Increase monitoring of in-store compliance with financial
• Continued associate training on data protection services legislation
• Monitored and provided guidance on data protection • Convert FICA training to the online learning platform to make
compliance in business activities including it easily accessible for all associates including stores
acquired businesses • Oversee assurance of debtor management system upgrade
• Implemented an automated monitoring process • Assess further compliance process automation opportunities
in-store to monitor financial services and other
applicable legislation
• Cybersecurity training

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Independent Key audit

matter
How the matter was
addressed in the audit

Auditor’s Report Impairment of goodwill and trademarks

To the Shareholders of Mr Price Group Limited The group’s goodwill and trademark assets amounted In evaluating the recoverability of the group’s carrying value
to R4.6 billion (R4.7 billion) and represent 16% of total of goodwill and trademark assets, we audited the impairment
Report on the Audit of the Consolidated and Separate Annual Financial Statements assets and 30% of equity. models prepared by the directors, with a particular focus on the
assumptions with most significant impact:
Opinion The disclosure related to the valuation of goodwill
We have audited the consolidated and separate financial statements of Mr Price Group Limited and its subsidiaries (the group and trademark assets are included in note 15 to the We performed various procedures, including the following:
and the company) set out on pages 23 to 97, which comprise the consolidated and separate statements of financial position as at consolidated and separate financial statements. • Gained an understanding of the models used to determine
30 March 2024, and the consolidated and separate statements of income statements, the consolidated and separate statements the Fair Value Less Cost to Sell (FVLCTS) and/or Value-in-
of comprehensive income, the consolidated and separate statements of changes in equity and the consolidated and separate The directors perform an annual impairment test in line Use (VIU) for each Cash Generating Unit (CGU).
statements of cash flows for the 52 weeks then ended, and notes to the consolidated and separate financial statements, including with the requirements of IAS 36: Impairments of Assets • Assessed the appropriateness of the CGUs identified;
a summary of significant material accounting policy information. (IAS 36) to assess the recoverability of the carrying value • Assessed sensitivity analysis on the assumptions to
of the relevant cash generating units (GCU’s). determine the key sensitive assumptions;
In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and • Tested the design and implementation of the key controls
separate financial position of Mr Price Group Limited and its subsidiaries as at 30 March 2024, and its consolidated and separate Significant judgement is required by the directors in relating to the preparation of the impairment models and
financial performance and consolidated and separate cash flows for the 52 weeks then ended in accordance with IFRS Accounting assessing the recoverable amount of the GCUs, which the review of the cash flows forecasts and other key
Standards as issued by the International Accounting Standards Board and the requirements of the Companies Act of South Africa. is determined as the higher of fair value less cost to sell inputs;
Basis for opinion (FVLCTS) or the value-in-use (VIU) based on the cash flow • Assessed the methodology and approach to the valuation
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards forecast for each CGU. and model based on appropriate valuation principles;
are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section • Assessed the logic of management’s models, arithmetic
of our report. We are independent of the group and company in accordance with the Independent Regulatory Board for Auditors’ The discounted cash flow model used to determine accuracy of the models, and terminal growth rates
Code of Professional Conduct for Registered Auditors (IRBA Code) and other independence requirements applicable to performing the recoverable amounts of the CGUs is detailed and applied;
audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code complex. Key inputs into the model include the following: • We evaluated the cash flow projections, including
and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent assumptions relating to revenue growth, gross profit
with the corresponding sections of the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics • Revenue and gross profit margin used in the future margin and working capital movements, against historical
for Professional Accountants (including International Independence Standards) (IESBA Code). cashflow forecasts; performance, current year results and in comparison, to
• Forecast capex and working capital requirements; the directors’ strategic plans and approved budgets, and
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. • Terminal growth rates applied in determining the on our professional judgement;
terminal value; and • Compared management’s carrying value of each CGU’s
Key audit matters
• The discount rate, which is based on the weighted asset value to our independently determined carrying
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated
average cost of capital (WACC). The determination value;
and separate financial statements of the current period. The matter was addressed in the context of our audit of the consolidated
of the WACC is complex, sensitive to the overall • Assessed the appropriateness of the related disclosures
and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
valuation outcome and contains significant in line with the requirements of IAS 36.
this matter.
judgement.
We engaged our internal valuation specialists and they
performed the following:
The complexity of the models used, the significance of
• Independently determined a WACC considering the
the judgements and estimation used in determining the
size risk premium, firm specific risk premium, risk-
inputs into the models and the magnitude of the relevant
free rate and the appropriate capital structure for each
goodwill and trademark balances at year end means that
CGU and compare this to the WACC as determined by
this was determined to be a key audit matter.
management.
Based on the testing performed, we concur with the
conclusion reached by the directors and the related
disclosures in terms of IFRS are considered appropriate.

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Other Matter as a whole are free from material misstatement, whether due to We also:
The consolidated and separate Financial Statements of the fraud or error, and to issue an auditor’s report that includes our • Identify and assess the risks of material misstatement of the as a going concern. If we conclude that a material
group for the 52 weeks then ended 1 April 2023 were audited opinion. Reasonable assurance is a high level of assurance, consolidated and separate financial statements, whether uncertainty exists, we are required to draw attention in our
by another auditor who expressed an unmodified opinion on but is not a guarantee that an audit conducted in accordance due to fraud or error, design and perform audit procedures auditor’s report to the related disclosures in the consolidated
those statements on 27 June 2023. with ISAs will always detect a material misstatement when it responsive to those risks, and obtain audit evidence that is and separate financial statements or, if such disclosures
exists. Misstatements can arise from fraud or error and are sufficient and appropriate to provide a basis for our opinion. are inadequate, to modify our opinion. Our conclusions are
Other Information considered material if, individually or in the aggregate, they The risk of not detecting a material misstatement resulting based on the audit evidence obtained up to the date of our
The directors are responsible for the other information. The could reasonably be expected to influence the economic from fraud is higher than for one resulting from error, as auditor’s report. However, future events or conditions may
other information comprises the information included in the decisions of users taken on the basis of these consolidated fraud may involve collusion, forgery, intentional omissions, cause the group and / or the company to cease to continue
document titled “2024 Annual Integrated Report 2 April 2023 and separate financial statements. misrepresentations, or the override of internal control. as a going concern.
to 30 March 2024 Mr Price Group Limited” and “2024 Annual • Obtain an understanding of internal control relevant to • Evaluate the overall presentation, structure and content
Financial Statements for the financial period 2 April 2023- As part of an audit in accordance with ISAs, we exercise the audit in order to design audit procedures that are of the consolidated and separate financial statements,
30 March 2024 Mr Price Group Limited” which includes the professional judgement and maintain professional scepticism appropriate in the circumstances, but not for the purpose including the disclosures, and whether the consolidated
directors’ report, the Audit and Compliance Committee report throughout the audit. of expressing an opinion on the effectiveness of the group’s and separate financial statements represent the underlying
and the Company Secretary’s Certificate as required by the and the company’s internal control. transactions and events in a manner that achieves fair
Companies Act of South Africa, CEO and CFO responsibility • Evaluate the appropriateness of accounting policies used presentation.
statement. The other information does not include the and the reasonableness of accounting estimates and • Obtain sufficient appropriate audit evidence regarding the
consolidated and separate financial statements and our related disclosures made by the directors. financial information of the entities or business activities
auditor’s report thereon. • Conclude on the appropriateness of the directors’ use of the within the group to express an opinion on the consolidated
going concern basis of accounting and based on the audit financial statements. We are responsible for the direction,
Our opinion on the consolidated and separate financial evidence obtained, whether a material uncertainty exists supervision and performance of the group audit. We remain
statements does not cover the other information and we related to events or conditions that may cast significant solely responsible for our audit opinion.
do not and will not express an audit opinion or any form of doubt on the group’s and the company’s ability to continue
assurance conclusion thereon.

In connection with our audit of the consolidated and separate

financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other
information is materially inconsistent with the consolidated
and separate financial statements or our knowledge obtained
in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other
information obtained prior to the date of this auditor’s report,
we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have
nothing to report in this regard.

Responsibilities of the Directors for the Consolidated and

Separate Financial Statements
The directors are responsible for the preparation and fair
presentation of the consolidated and separate financial
statements in accordance with IFRS Accounting Standards
as issued by the International Accounting Standards Board
and the requirements of the Companies Act of South Africa,
and for such internal control as the directors determine is
necessary to enable the preparation of consolidated and
separate financial statements that are free from material
misstatement, whether due to fraud or error.

In preparing the consolidated and separate financial

statements, the directors are responsible for assessing the
group’s and the company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the directors either intend to liquidate the group
and company or to cease operations, or have no realistic
alternative but to do so.

Auditor’s Responsibilities for the Audit of the Consolidated

and Separate Financial Statements
Our objectives are to obtain reasonable assurance about
whether the consolidated and separate financial statements

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

In terms of the IRBA Rule published in Government Gazette Number 39475 dated 4 December 2015, we report that Deloitte &
Touche has been the auditor of Mr Price Group Limited for the first time for the 30 March 2024 audit.

Deloitte & Touche

Registered Auditor
IRBA: 902276
Per: Camilla Howard-Browne (CA) SA; RA
Partner
24-06-2024

Deloitte
The Skye, 2 Vuna Close, Umhlanga Ridge, 4319

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Shareholder Information
for the year ended 30 March 2024

Shareholder’s diary Major shareholders

June Announcement of annual results, declaration of final dividend to shareholders and publication of 2024 To the company’s best knowledge and belief, the following shareholders or fund managers held discretionary beneficial interest
annual integrated report and / or administered client portfolios amounting to 5% or more of the issued ordinary shares of the company at 30 March 2024:
July Settlement of final dividend to shareholders
August Annual general meeting of shareholders
November Publication of interim report covering the 26 weeks ended 28 September 2024
Portfolio Administration
Announcement of interim dividend to shareholders Beneficial holding
Discretionary
December Settlement of interim dividend to shareholders, if announced
% Shares % Shares

Ordinary shares B Ordinary shares Ordinary shares

Number of Number of Number of Number of Public Investment Corporation Limited 17.53 45 024 079 14.86 38 155 062
Holdings shareholders % shares % shareholders % shares %
B ordinary shares
1 – 1 000 28 559 83.10 6 247 413 2.43 1 14.29 200 -
Gretrac Investment Trust 41.23 2 800 912
1 001 - 10 000 4 573 13.30 12 854 814 5.01 - - - -
Kovacs Investments 343 CC 31.70 2 155 852
10 001 - 100 000 969 2.82 31 359 684 12.21 - - - -
Silwood Trust 8.60 585 012
100 001 - 1 000 000 227 0.66 64 249 909 25.02 4 57.14 1 835 822 27.03
Catregav Investment Trust 7.20 488 204
1 000 001 and over 40 0.12 142 079 676 55.33 2 28.57 4 956 764 72.97
Ferbros Nominees (Pty) Ltd 5.90 400 000
34 368 100 256 791 496 100 7 100 6 792 786 100
Oaklands Trust 5.30 362 606

Number of Number of Number of Number of Details of the beneficial interest in B ordinary shares are reflected in the report of the directors, page 6 .
Category shareholders % shares % shareholders % shares %

Pension funds 195 0.57 71 654 665 27.90 - - - -

Unit Trusts/ Mutual 550 1.60 85 126 581 33.15 - - - -

Funds

Nominee companies 33 353 97.05 76 554 854 29.81 2 28.57 2 555 852 37.63
and corporate bodies

Individuals and trusts 260 0.75 22 189 133 8.65 5 71.43 4 236 934 62.37

Staff share schemes 10 0.03 1 266 263 0.49 - - - -

34 368 100 256 791 496 100 7 100 6 792 786 100

Public and non-public shareholders

At 30 March 2024 the percentage direct or indirect shareholdings of public and non-public shareholders in the listed ordinary
shares of the company was as follows:

Number of Number of
shareholders % shares %

Public shareholders 34 318 99.86 248 785 412 96.88

Non-public shareholders* 50 0.14 8 006 084 3.12

Holders holding more than 10% - - - -

Directors of the company or its subsidiaries 12 0.03 2 013 225 0.78

Other associates restricted from trading shares in closed periods 29 0.08 531 148 0.21

Trustees of employees' share schemes or retirement benefit schemes 9 0.03 5 461 711 2.13

*Includes directors, pension/retirement funds and treasury shares

21 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 22

 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Consolidated and Separate Income Statements Consolidated and Separate Statements of Comprehensive Income
for the year ended 30 March 2024 for the year ended 30 March 2024

Group Company Group Company

R’m Notes 2024 2023 2024 2023 R’m Notes 2024 2023 2024 2023
Profit attributable to shareholders 3 424 3 226 2 896 2 954
Revenue 3 37 944 32 853 28 840 27 441 Other comprehensive income
Retail sales^ 36 586 31 498 27 459 25 953
Items that will be reclassified subsequently
Other revenue excluding interest charged on debtors*^ 740 768 811 927 to profit or loss:
Interest on debtors 457 402 456 401 Currency translation adjustments 29 (13) 4 - -
Finance interest income 161 185 114 160 (Loss)/Gain on hedge accounting (27) 61 (27) 61
Deferred taxation thereon 7 (17) 7 (17)
Retail sales and other revenue 37 783 32 668 28 726 27 281
Items that will not be reclassified subsequently
Costs and expenses 32 476 27 748 24 310 22 888 to profit or loss:
Cost of sales 8 22 144 19 144 16 757 15 881 Defined benefit fund actuarial (loss)/gain 21.3 (6) 2 (6) 2
Selling expenses 7 665 6 323 5 519 5 108 Deferred taxation thereon 21.3 1 -* 1 -*
Administrative and other operating expenses 2 667 2 281 2 034 1 899 Total comprehensive income for the year
3 386 3 276 2 871 3 000
attributable to shareholders, net of taxation
Profit before finance costs and finance income 4 5 307 4 920 4 416 4 393 Total comprehensive income attributable to:
Finance interest income 161 185 114 160 Owners of the parent 3 242 3 165 2 871 3 000
Finance costs 806 702 623 600 Non-controlling interest 144 111 - -
Profit before taxation 4 662 4 403 3 907 3 953 Total comprehensive income for the year
3 386 3 276 2 871 3 000
attributable to shareholders, net of taxation
Taxation 24 1 238 1 177 1 011 999
Net profit for the year 3 424 3 226 2 896 2 954 *Less than R1 million

Profit attributable to:

Non-controlling interest 144 111
Equity holders of parent 3 280 3 115 2 896 2 954
3 424 3 226 2 896 2 954

cents per cents per

Earnings per share share share % change
Basic 7 1 276.2 1 210.7 5.4
Diluted basic 7 1 242.9 1 183.3 5.0

Headline earnings per share

Headline 7 1 286.2 1 205.7 6.7

Diluted headline 7 1 252.6 1 178.4 6.3

*Included in other revenue is insurance revenue of R198m (2023: R230m)

^These revenue streams were previously disclosed in aggregate

23 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 24

 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Consolidated and Separate Statements of Financial Position Consolidated and Separate Statements of Cash Flows
as at 30 March 2024 for the year ended 30 March 2024

Group Company Group Company

R’m Notes 2024 2023 2024 2023 R’m Notes 2024 2023 2024 2023
Assets Cash flows from operating activities
Non-current assets 16 838 17 003 15 046 15 313
Operating profit before working capital changes 13.1 7 885 6 970 6 058 5 729
Property, plant and equipment 14 4 072 3 598 3 228 2 848
Working capital changes 13.2 122 (710) (173) (316)
Right-of-use asset 16 7 237 7 737 5 875 6 474
Intangible assets 15 5 101 5 245 1 606 1 616 Cash generated from operations 8 007 6 260 5 885 5 413
Consolidated entities 30 - - 4 051 4 107 Interest on trade receivables 459 418 456 401
Long-term receivables and other investments 17 44 47 55 45
Finance costs paid (95) (51) (42) (30)
Defined benefit fund asset 21 89 85 89 85
Finance income received 161 164 117 155
Deferred taxation assets 25 295 291 142 138
Dividend income 4 - - 34 160
Taxation paid 13.3 (1 386) (851) (1 131) (662)
Current assets 12 978 11 778 9 410 8 452
Inventories 8 7 078 7 321 4 314 4 358 Net cash inflows from operating activities 7 146 5 940 5 319 5 437
Trade and other receivables 9 2 969 2 733 2 836 2 492
Cash flows from investing activities
Derivative financial instruments 2 51 2 51
Cell captive structure 11 124 - 124 - Decrease in respect of long-term receivables 13.4 3 11 1 6
Taxation 24 7 12 - - Payment for acquisition of Studio 88, net of cash acquired - (3 465) - (3 442)
Reinsurance assets 11 - 219 - 219 Payment for intangible assets acquired
Current amounts owing by consolidated entities 30 - - 565 374
- Addition 15 (69) (82) (66) (77)
Cash and cash equivalents 12 2 798 1 442 1 569 958
Payment for property, plant and equipment (PPE) acquired
- Replacement 14 (247) (272) (193) (245)
Total assets 29 816 28 781 24 456 23 765 - Addition 14 (668) (484) (425) (335)
Proceeds on disposal of PPE 3 1 3 1
Equity and liabilities Proceeds from insurance relating to PPE 2 21 2 21
Issued capital 26 -* -* -* -* Net cash outflows from investing activities (976) (4 270) (678) (4 071)
Capital reserves 27 567 545 526 501
Treasury share transactions 28 (2 485) (2 390) (3 038) (2 937) Cash flows from financing activities
Retained income 16 529 15 064 15 887 14 821 Receipts relating to sale of shares by staff share trusts 26 27 39 - -
Foreign currency translation reserve 29 (241) (228) - -
Treasury Share transactions 26 (22) (16) - -
Defined benefit fund actuarial gains and losses 21.3 (2) 3 (2) 3
Cash flow hedge reserve -* 20 -* 20 Payment relating to share hedging costs and instruments (111) (189) (111) (189)
Equity attributable to equity holders of parent 14 368 13 014 13 373 12 408 Increase in interest-bearing loans 8 4 -* -
Non-controlling interest 1 058 914 - - Payment relating to share buyback - (167) - (167)
Payment relating to purchase of shares by staff share trusts - (42) - -
Total equity 15 426 13 928 13 373 12 408
Repayment of capital portion of lease liabilities and
19 & 20 (2 089) (1 586) (1 410) (1 265)
instalment sale agreement
Non-current liabilities 6 915 7 466 5 646 6 168
Repayment of interest portion of lease liabilities and
Interest-bearing loans 20 38 56 - - 19 & 20 (715) (692) (581) (570)
instalment sale agreement
Lease liabilities 19 6 512 7 028 5 624 6 148
Dividends paid 13.5 & 13.6 (1 911) (2 192) (1 926) (2 206)
Deferred taxation liability 25 343 362 - -
Post retirement medical benefits 21.2 22 20 22 20 Net cash outflows from financing activities (4 813) (4 841) (4 028) (4 397)

Current liabilities 7 475 7 387 5 437 5 189 Total cash movement for the year 1 357 (3 171) 613 (3 031)
Trade and other payables 10 5 175 4 877 3 737 3 254
Cash and cash equivalents at beginning of the year 1 442 4 612 958 3 984
Current amounts owing to consolidated entities 30 - - 46 46
Current portion of interest-bearing loans 20 34 33 - - Exchange (losses)/gains (1) 1 (2) 5
Derivative financial instruments 2 31 2 31 Cash and cash equivalents at end of the year 12 2 798 1 442 1 569 958
Lease liabilities 19 2 126 2 093 1 524 1 530
*Less than R1 million
Taxation 24 138 309 128 284
Reinsurance liabilities 11 - 44 - 44

Total liabilities 14 390 14 853 11 083 11 357

Total equity and liabilities 29 816 28 781 24 456 23 765

*Less than R1 million

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Consolidated and Separate Statement of Changes in Equity

for the year ended 30 March 2024

Attributable to the Equity Holders of the Parent

Capital Reserves Treasury Share Transactions

Participants Taxation relating Defined benefit
Share-based Treasury shares Deficit on treasury Foreign currency Cash flow hedge Non-controlling
R’m Notes Share capital* Share premium in staff share to grants to share fund actuarial Retained income Total Total Equity
payments reserve at cost share transactions translation reserve reserve interests
investment trust trusts gains and losses
Group
Balance at 2 April 2022 - 12 36 409 (938) (1 622) 363 (232) 1 (24) 14 051 12 056 - 12 056

Total comprehensive income - - - - - - - 4 2 44 3 115 3 165 111 3 276

Profit for the year - - - - - - - - - - 3 115 3 115 111 3 226

Other comprehensive income - - - - - - - 4 2 44 - 50 - 50

Currency translation adjustments - - - - - - - 4 - - - 4 - 4
Net loss on hedge accounting - - - - - - - - - 61 - 61 - 61
Deferred taxation thereon - - - - - - - - - (17) - (17) - (17)
Defined benefit fund actuarial gain 21.3 - - - - - - - - 2 - - 2 - 2
Deferred taxation thereon 21.3 - - - - - - - - -* - - -* - -*

Conversion of B ordinary to ordinary share capital 26 -* -* - - - - - - - - - - - -

Treasury shares acquired 28 - - - - (36) - - - - - - (36) - (36)
Taxation relating to grants to share trusts 28 - - - - - - 21 - - - - 21 - 21
Effect of consolidation of staff share trusts 27.2 - - 6 - (6) - - - - - - - - -
Deficit on treasury share transactions 28 - - - - - (18) - - - - - (18) - (18)
Recognition of share-based payments 26.5 - - - 182 - - - - - - - 182 - 182
Share-based equity reserve hedge cost 28 - - - - (193) - - - - - - (193) - (193)
Share-based payments reserve released to retained 27.3 - - - (90) - - 90 - - -
- - - -
income for vested options
Treasury shares sold 28 - - - - 39 - - - - - - 39 - 39
Shares issued - 157 - - - - - - - - - 157 - 157
Shares cancelled - (167) - - - - - - - - - (167) - (167)
Non-controlling interest acquired - - - - - - - - - - - - 803 803

2022 final dividend payment 6 - - - - - - - - - - (1 374) (1 374) - (1 374)

2023 interim dividend payment 6 - - - - - - - - - - (818) (818) - (818)

Balance as at 01 April 2023 - 2 42 501 (1 134) (1 640) 384 (228) 3 20 15 064 13 014 914 13 928

Total comprehensive income - - - - - - - (13) (5) (20) 3 280 3 242 144 3 386

Profit for the year - - - - - - - - - - 3 280 3 280 144 3 424

Other comprehensive income - - - - - - - (13) (5) (20) - (38) - (38)

Currency translation adjustments 29 - - - - - - - (13) - - - (13) - (13)
Fair value adjustments on financial instruments - - - - - - - - - (27) - (27) - (27)
Deferred taxation thereon - - - - - - - - - 7 - 7 - 7
Defined benefit fund actuarial gain 21.3 - - - - - - - - (5) - - (5) - (5)

Taxation relating to grants to share trusts 28 - - - - - - 8 - - - - 8 - 8

Effect of consolidation of staff share trusts 27.2 - - (3) - 3 - - - - - - - - -
Deficit on treasury share transactions 28 - - - - - (94) - - - - - (94) - (94)
Recognition of share-based payments 26.5 - - - 121 - - - - - - - 121 - 121
Share-based equity reserve hedge cost 28 - - - - (106) - - - - - - (106) - (106)
Share-based payments reserve released to retained 27.3 - - - (96) - - - - - - 96 - - -
income for vested options
Treasury shares sold - - - - 94 - - - - - - 94 - 94
2023 final dividend payment 6 - - - - - - - - - - (1 171) (1 171) - (1 171)
2024 interim dividend payment 6 - - - - - - - - - - (740) (740) - (740)

Balance at 30 March 2024 - 2 39 526 (1 143) (1 734) 392 (241) (2) - 16 529 14 368 1 058 15 426

*Less than R1 million

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Consolidated and Separate Statement of Changes in Equity

for the year ended 30 March 2024

Attributable to the Equity Holders of the Parent

Capital Reserves Treasury Share Transactions

Defined benefit fund
Participants in staff Share-based Treasury shares at Deficit on treasury Taxation relating to Foreign currency Cash flow hedge
R’m Notes Share capital* Share premium actuarial gains and Retained income Total
share investment trust payments reserve cost share transactions grants to share trusts translation reserve reserve
losses
Company

Balance at 2 April 2022 - - - 409 (2 842) (274) 363 - 1 (24) 13 983 11 616

Total comprehensive income - - - - - - - - 2 44 2 954 3 000

Profit for the year - - - - - - - - - - 2 954 2 954

Other comprehensive income - - - - - - - - 2 44 - 46

Defined benefit fund actuarial gain 21.3 - - - - - - - - 2 - - 2
Deferred taxation thereon 28 - - - - - - - - -* - - -*
Net loss on hedge accounting - - - - - - - - - 61 - 61
Deferred taxation thereon - - - - - - - - - (17) - (17)

Conversion of B ordinary share capital 26 -* -* - - - - - - - - - -

Share -based payments reserve released to retained 27.3 - - - (90) - - - - - - 90 -
income for vested options
Deficit on treasury share transactions 28 - - - - - (12) - - - - - (12)
Taxation relating to grants to share trusts 28 - - - - - - 21 - - - - 21
Recognition of share-based payments 26.5 - - - 182 - - - - - - - 182
Share-based equity reserve hedge cost - - - - (193) - - - - - - (193)

2022 final dividend payment 6 - - - - - - - - - - (1 383) (1 383)

2023 interim dividend payment 6 - - - - - - - - - - (823) (823)

Balance at 1 April 2023 - - - 501 (3 035) (286) 384 - 3 20 14 821 12 408

Total comprehensive income - - - - - - - - (5) (20) 2 896 2 871

Profit for the year - - - - - - - - - - 2 896 2 896

Other comprehensive income - - - - - - - - (5) (20) - (25)

Defined benefit fund actuarial loss 21.3 - - - - - - - - (5) - - (5)
Fair value adjustments on financial instruments 18 - - - - - - - - - (27) - (27)
Deferred taxation thereon 28 - - - - - - - - - 7 - 7

Share-based payments reserve released to retained

27.3 - - - (96) - - - - - - 96 -
income for vested options
Deficit on treasury share transactions 28 - - - - - (72) - - - - - (72)
Taxation relating to grants to share trusts 28 - - - - - - 8 - - - - 8
Recognition of share - based payments 26.5 - - - 121 - - - - - - - 121
Share - based equity reserve hedge cost 28 - - - - (37) - - - - - - (37)

2023 final dividend payment 6 - - - - - - - - - - (1 179) (1 179)

2024 final dividend payment 6 - - - - - - - - - - (747) (747)

Balance at 30 March 2024 - - - 526 (3 072) (358) 392 - (2) - 15 887 13 373

*Less than R1 million

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

1. Basis of preparation
The annual financial statements have been prepared on the historic cost basis, except where indicated otherwise in a policy.
The Group annual financial statements have been prepared in accordance with International Financial Reporting Standards
(‘IFRS’) and its Interpretations adopted and issued by the International Accounting Standards Board, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and the Financial Reporting Pronouncements as issued by
the Financial Reporting Standards Council, the JSE Listings Requirements and the requirements of the Companies Act of South
Africa. The consolidated financial statements are presented in Rands and all values are rounded to the nearest million (R million),
except when otherwise indicated.

The consolidated financial statements comprise the financial statements of the group and its consolidated entities as at 30 March
2024. The group reports on retail calendar trading weeks incorporating trade from Sunday to Saturday each week. Accordingly
the results for the financial year under review are for a 52-week period from 2 April 2023 to 30 March 2024 (2023: 52-week period
from 3 April 2022 to 1 April 2023).

The group and company discloses its material accounting policies, including its measurement basis, as part of its disclosures
in each note in order to assist the users of these statements in understanding how transactions, events and conditions are
reflected in the primary financial statements. The group presents its notes on the following basis:

• Incorporate all related disclosures, material accounting policies and other information relating to a particular statement of

Notes To financial positions/income statement item together to provide a complete overall picture of the item.
• The notes, as far as possible, are ordered in terms of materiality and significance to the business (refer to navigation on the

The Financial
contents page ).

The consolidated financial statements provide comparative information in respect of the previous period. Unless otherwise

Statements indicated, any references to the group include the company.

for the year ended 30 March 2024

2. New Standards and Interpretations
2.1 Adoption of new standards and changes in accounting policies
The following new standards and interpretations that were applicable were adopted during the year. These new standards and
interpretations did not lead to any material changes in the group’s accounting policies. There were other amendments issued by the
IASB which came into effect for the current financial period which were not applicable to the group.

Statement, interpretation or standard Effective for annual periods beginning

IFRS 17 - Insurance contracts 1 January 2023

Amendments to IAS 8 - Definition of accounting estimates 1 January 2023

Amendments to IAS 1 and IFRS practice statement 2 1 January 2023

Disclosure of accounting policies

Amendments to IAS 12 - Deferred tax related to assets and 1 January 2023

liabilities arising from a single transaction

The directors reviewed the impact of the above effective new statements, standards and interpretations and has
determined that the above mentioned standard do not have material financial impact on the annual financial statements.

IFRS 17 - Insurance contracts

Based on the shareholders’ agreement with respect to the cell captive arrangements, the in-substance reinsurance contracts
issued consist of initial and subsequent contract boundaries of one year. Based on the contract boundary, the group is eligible
to apply the Premium Allocation Approach (PAA). Based on the group’s assessment, the transition from IFRS 4 to IFRS 17 has
an increase in liabilities of R1.7m and a decrease in profit and loss of R1.7m, as a result of increase in the Liability for Incurred
Claims (LIC) due to the inclusion of the Risk Adjustment. It has been assessed by the group that the adoption of IFRS 17 for the
cell captive arrangement has not had a material impact on the annual financial statements. The group has elected to apply IFRS
17:B137 and has not changed the treatment of accounting estimates made in previous financial statements. Disclosure has been
updated to reflect a net Cell Captive Structure which is the net receivable from the cell in the statement of financial position,
compared to previous disclosure which reflected the gross reinsurance asset and liabilities.

31 Mr Price Group Limited 32

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2.2 Standards and amendments issued but not yet effective Results of Operations
At the date of authorisation of these financial statements, the following statements, interpretations and standards were in issue
but not yet effective.

Standard/ Interpretation: Effective date: Years Expected impact: 3. Revenue

beginning on or after
Group Company
Amendment to IFRS 16- leases on sale and leaseback 01 January 2024 Unlikely there will be a material impact
R’m 2024 2023 2024 2023
IFRS S2 - climate related disclosures 01 January 2024 New disclosures required The disaggregated revenue is as follows:

Amendment to IAS 7 and IFRS 7 - Supplier finance arrangements 01 January 2024 New disclosures required Retail sales# 36 586 31 498 27 459 25 953
Insurance revenue #^
198 230 198 230
Amendments to IAS 21 - Lack of exchangeability 01 January 2025 Unlikely there will be a material impact
Telecoms income (non-retail)# 161 147 65 50
IFRS 18 - Presentation and Disclosures in Financial Statements 01 January 2027 New disclosures required Interest and fees charged on debtors #
671 598 656 584
Club fees# 32 27 31 26
IFRS 19 - Subsidiaries without Public Accountability: Disclosures 01 January 2027 Unlikely there will be a material impact
Income from consolidated entities - - 227 286
Other sundry income* 135 168 90 152
The directors anticipate that the adoption of the above mentioned standards in future periods will have no material financial
impact on the financial statements of the group and will only result in additional disclosure requirements. These statements, Retail sales and other revenue 37 783 32 668 28 726 27 281
interpretations and standards will be adopted at the respective effective dates. Finance interest income 161 185 114 160

Revenue 37 944 32 853 28 840 27 441
Supplier finance arrangements - amendments to IAS 7 and IFRS 7
The standard requires specific disclosures about supplier finance arrangements (SFAs). The new disclosures will provide #
Revenue from contracts with customers R37 648m for group (2023: R32 500m) and company R28 409m (2023: R26 843m)
information about: *Other sundry income includes insurance proceeds R30m (2023: R112m consisting of R103m received as a result of the civil unrest that occurred in FY2022)
1. The terms and conditions of SFAs. ^Previously insurance premiums under IFRS 4
2. The carrying amount of financial liabilities that are part of SFAs and the line items in which those liabilities are presented.
3. The carrying amount of the financial liabilities in (2) for which suppliers have already received payment from the finance
providers. Tender type retail sales
4. The range of payment due dates for both the financial liabilities that are part of SFAs and comparable trade payables that are Cash sales 32 513 27 494 23 415 21 965
not part of such arrangements.
Credit sales 4 073 4 004 4 044 3 988
5. Non-cash changes in the carrying amounts of financial liabilities in (2).
6. Access to SFA facilities and concentration of liquidity risk with the finance providers. 36 586 31 498 27 459 25 953

Presentation and Disclosures in Financial Statements - IFRS 18

Revenue from contracts with customers is recognised at a point in time, except where revenue has been earned through mobile
One of the key features of IFRS 18 is to require companies to classify all items of income and expenses into one of the five
contracts where services are transferred over time.
categories of operating, investing, financing, income taxes and discontinued operations. The categories are complemented by
the requirement to present subtotals and totals for “operating profit or loss”, “profit or loss before financing and income taxes”
and “profit or loss”. The new standard also provides that the aggregation and disaggregation of items of assets, liabilities, equity, Accounting policy
revenue, expenses and cash flows are based on shared characteristics. Companies are required to aggregate or disaggregate Revenue is recognised when (or as) a performance obligation is satisfied by transferring a promised good or service to a customer
items to present line items in the primary financial statements to provide useful structured summaries. (which is when the customer obtains control of that good or service).

Another important feature of IFRS 18 is management-defined performance measures (MPM). An MPM is a subtotal of income and Revenue is measured based on the standalone selling price of the merchandise. If the consideration in a contract includes a
expenses not listed in IFRS accounting standards, nor specifically required to be presented or disclosed by an IFRS accounting variable amount, the group estimates the amount of consideration to which it will be entitled in exchange for transferring the
standard. Companies use MPMs in public communications outside financial statements to communicate to users management’s goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable
view of an aspect of the financial performance of the company as a whole. Furthermore, IFRS 18 requires companies to disclose that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty
information about all their MPMs in a single note to the financial statements. It also requires disclosure of how the measure is with the variable consideration is subsequently resolved. Contracts for the sale of merchandise provide customers with a right of
calculated, how it provides useful information to users and a reconciliation to the most comparable subtotal specified by IFRS return. The rights of return give rise to variable consideration.
accounting standards.
Customer purchases of gift vouchers, to be used in our stores or on our online platforms, are not recognised as revenue until
the voucher is redeemed and the customer purchases merchandise using the gift voucher subject to breakage. Gift vouchers, in
line with the 3-year prescription period, are deemed to only expire after 3 years. Management periodically reviews and updates
its estimates for unredeemed gift vouchers which includes a consideration of breakage in the proportion to the pattern of rights
exercised by the customer in order to determine whether the likelihood of redemption is remote.

33 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 34

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The main categories of revenue and the basis of recognition are as follows:

Retail sales 4. Profit before finance costs and finance income

Retail sales comprise net income from the sale of merchandise and are recognised when control of the merchandise is
transferred to the customer. It is the group’s policy to sell its products to the retail customer with a right to return within a Group Company
specified period. Accumulated experience is used to estimate and provide for such returns. Under IFRS 15, a right to recover
R’m 2024 2023 2024 2023
product asset has been recognised by the group. Refer to note 9 for this disclosure. The group will record a refund liability
(refer to note 10) for the amount of revenue not expected to be recognised and a new defined asset, being the right to Arrived at after (crediting)/charging the following:
recover product asset, for its right to the returned goods. For lay-by sales, revenue is only recognised when the control of the Income from consolidated entities - - (227) (285)
merchandise is transferred to the customer which occurs when full consideration is received. Dividend income - - (34) (160)
Administration Fees - - (193) (125)
Insurance revenue
The insurance revenue for each period is the amount of expected premium receipts for providing services in the period. Amortisation of intangible assets (note 15) 123 105 76 75
The company allocates the expected premium receipts to each period on the passage of time, unless another basis is more
appropriate. Associate costs 4 380 3 601 3 262 2 936
Salaries, wages and other benefits 4 070 3 228 2 961 2 579
Club fees Share-based payments (note 26.5) 121 188 121 188
Club fees are recognised in the month immediately preceding the satisfaction of the performance obligation (ie. when the Restraint of trade 9 - 9 -
customer charge accrues). Defined contribution pension funds expense 189 192 180 176
Defined benefit pension fund net (9) (7) (9) (7)
Interest Current service cost 2 2 2 2
The group calculates interest income by applying the effective interest rate to the gross carrying amount of financial assets Interest cost 6 6 6 6
other than credit-impaired assets. When a financial asset becomes credit-impaired, and is therefore regarded as Stage 3, Expected return on fund assets (17) (15) (17) (15)
the group calculates interest income by applying the effective interest rate to the net amortised cost of the financial asset. If
the financial asset cures and is no longer credit-impaired, the group reverts to calculating interest income on a gross basis.
Auditors' remuneration 14 16 10 10
Prepaid airtime sales (telecoms income) Audit fees 14 16 10 10
Revenue is recognised once the performance obligation to deliver airtime to the customer has been satisfied and the customer Non audit fees -* -* - -
has obtained control of the product.
Consulting fees 61 65 50 58
Contracts (telecoms income) Technical services 53 59 50 57
Contract products are defined as arrangements with multiple deliverables. Administrative and other services 8 6 -* 1

Each deliverable under a contract is identified as a separate performance obligation and revenue is recognised once the
Depreciation of property. plant and equipment (note 14) 538 355 336 261
performance obligation is satisfied. As a result, handset revenue is recognised when the control of the handset is transferred to
Depreciation of right-of-use asset (note 16) 2 258 1 863 1 566 1 501
the customer. Monthly service and airtime revenue will be recognised as each performance obligation under the contract with
the customer is fulfilled. Unused airtime is deferred in full and recognised in the month of usage or on expiry of the airtime.
Impairment of property, plant and equipment (Refer to note 14) 1 1 1 1

Retail voice and data (telecoms income)
Impairment/(reversal of impairment) of right of use asset (Refer to 19 (3) 17 (3)
Subscription fees and revenue relating to local, long distance, network-to-network, roaming and international call connection
note 16)
services are recognised when the performance obligation is met and the service is transferred to the customer.

Net loss of disposal and scrapping of property, plant and

Income from consolidated entities 17 7 16 7
equipment (note 14)

• Dividend income
Net movement in ECL provision 151 39 151 45
Dividend income includes the value of cash dividends received and surpluses distributed by a staff share trust. Dividends are
recognised when the right to receive payment has been established.
Net loss/(gain) on foreign exchange 40 (112) 28 (137)
• Fees
Fees represent fee income from consolidated entities in respect of various administrative and operating functions performed Other occupancy costs 394 212 126 83
on their behalf. Fees are recognised when the charge accrues. Land and buildings 366 185 98 58
Equipment 25 24 25 22
Motor vehicles 3 3 3 3
*Less than R1 million

Accounting policy
Cost of sales comprise the direct cost of merchandise sold and incorporates the cost of distribution, inventory losses and
provisions for markdowns less discounts received from suppliers. The ineffective portion of the gain or loss on a hedging
instrument is recognised immediately in the income statement in cost of sales.

Selling expenses comprise the costs incurred in the marketing and advertising of merchandise, store operations and the
provision of credit, airtime and mobile facilities.

Administrative and other expenses comprise costs related to the operation of the support functions within the group other
than those included in selling expenses.

35 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 36

 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Geographical segments

South Africa International Eliminations Total

5. Segmental reporting
R’m 2024 2023 2024 2023 2024 2023 2024 2023
5.1 Business segments
For management reporting purposes, the group has reported business units based on how the group’s chief decision makers Revenue^ 35 101 30 602* 2 858 2 268* (15) (17) 37 944 32 853
operate the business being the CEO and CFO.
Retail sales 33 748 29 234 2 838 2 264 - - 36 586 31 498
Chief operating decision makers (CODM’s) monitor the operating results of its business units separately for the purpose of making
Insurance revenue 201 237 - - (3) (7) 198 230
decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit
or loss. Telecoms income (non-retail sales) 161 147 - - - - 161 147

The five reportable segments are as follows: Interest and fees charged on debtors 670 597 1 1 - - 671 598
• The Apparel segment retails clothing, sportswear, footwear, sporting equipment and accessories. This segment includes the Club fees 31 27 1 -* - - 32 27
following trading divisions: Mr Price Apparel, Mr Price Sport, Miladys, Power Fashion and the Studio 88 group.
• The Homeware segment retails homeware and furniture. This segment includes Mr Price Home, Sheet Street and Yuppiechef. Other sundry income 122 168 13 -* - - 135 168
• The Financial Services segment manages the group’s trade receivables and sells financial services products.
Retail sales and other revenue 34 933 30 410 2 853 2 265 (3) (7) 37 783 32 668
• The Telecoms segment sells cellular products and services.
• The Central Services segment provides chargeable and non chargeable services to the trading segments noted. The trading Finance interest income 168 192 5 3 (12) (10) 161 185
segments are only allocated costs for information technology, distribution costs and shared services costs which is done in
proportion to their relative sales contribution to the group. All remaining centre of excellence costs (corporate and governance Assets 28 282 26 691* 1 534 2 090* 29 816 28 781
services) which are not directly related to the running of the segments are not charged out. Segments are managed on a
Capital expenditure 1 038 918 61 27 1 099 945
targeted operating margin percentage basis. Net finance income and income taxes are managed at a group level and are not
allocated to operating segments.
*Correction of prior period allocation error between South Africa and International for revenue and assets of R545m and R15 452m respectively
^Revenue has been disaggregated to reflect the various revenue streams for enhanced disclosure
Financial Central
Apparel Homeware Telecoms Eliminations Total
Services services
Accounting policy
R’m 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 The group’s retailing operations are reported within four operating segments, namely the Apparel, Homeware, Financial
Retail sales 29 145 24 183 6 270 6 252 - - 1 171 1 063 - - - - 36 586 31 498 Services and Telecoms segments. Group service divisions are reported in the Central Services segment. The group presents
information about geographical areas based on retail sales and other revenue. The information reported is similar to the
Retail cash sales 26 120 21 242 5 594 5 536 - - 800 716 - - - - 32 514 27 494 information provided to management to enable them to assess performance and allocate resources.
Retail credit sales 3 025 2 941 676 717 - - 371 346 - - - - 4 072 4 004

Other revenue 62 67 13 4 869 829 185 150 68 120 - - 1 197 1 170

Retail sales and

Other revenue
29 207 24 250 6 283 6 256 869 829 1 356 1 213 130 218 (62) (98) 37 783 32 668 6. Dividends paid
External 29 207 24 250 6 283 6 256 869 829 1 356 1 213 68 120 - - 37 783 32 668 Group Company
Internal - - - - - - - - 62 98 (62) (98) - - R’m 2024 2023 2024 2023
Profit before finance Ordinary and B ordinary shares
costs and finance 4 455 3 848 662 859 514 403 133 85 (457) (275) - - 5 307 4 920
income 1 171 1 374 1 179 1 383

Finance income received 51 24 2 1 17 13 2 3 101 154 (12) (10) 161 185 Prior year final dividend: 447,1 cents per share (2023: 524,9 cents per
share) 1 179 1 383 1 179 1 383
Finance cost (586) (510) (172) (150) (4) (5) (2) -* (42) (37) - - (806) (702)
Dividend paid by Partners Share Trust 14 16 - -
Profit before tax 3 920 3 362 492 710 527 411 133 88 (398) (158) (12) (10) 4 662 4 403 Less: dividend received on shares held by staff share trusts (22) (25) - -
Taxation (218) (166) 5 (1) (57) (56) (4) (6) (964) (950) -* 2 (1 238) (1 177)
740 818 747 823
Profit after tax 3 702 3 196 497 709 470 355 129 82 (1 362) (1 108) (12) (8) 3 424 3 226
Current year interim dividend: 283,5 cents per share (2023: 312,5 747 825 747 823
cents per share)

Depreciation and 2 169 1 638 521 483 12 13 13 5 204 186 - - 2 919 2 325 Dividend paid by Partners Share Trust 9 9 - -
amortisation Less: dividend received on shares held by staff share trusts (16) (16) - -
Associate costs 2 758 2 201 646 626 118 119 84 66 774 589 - - 4 380 3 601

Consulting fees 11 8 3 3 1 1 - - 46 53 - - 61 65
Total net dividend 1 911 2 192 1 926 2 206
Net gain (loss) on foreign 42 (109) (2) (3) - - - - - - - - 40 (112)
exchange
In respect of the current year, the board of directors declared that on 08 July 2024, a cash dividend of 526.8 cents per share be
Total assets 15 557 16 066 3 203 3 317 2 626 2 506 429 251 8 001 6 641 - - 29 816 28 781 paid to shareholders who are registered on the “Record date” of 05 July 2024. This dividend has not been reflected as a liability
Capital expenditure 724 578 196 157 4 2 30 18 145 190 - - 1 099 945 in these financial statements. The total dividend to be paid by the company is R1.4 billion.

Total liabilities 10 304 10 572 2 800 2 861 132 159 190 157 964 1 104 - - 14 390 14 853 Dividends in respect of equity instruments are recorded in the period in which the dividend is paid and are charged directly to equity.

*Less than R1 million

37 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 38

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Working Capital

7. Earnings per ordinary and B ordinary share 8. Inventories

7.1 Reconciliation of earnings
Group Company
The calculation of basic and headline earnings per share is based on:
R’m 2024 2023 2024 2023
Group and Company
Merchandise purchased for resale 7 054 7 298 4 290 4 335
R’m 2024 2023
Consumable stores 24 23 24 23
Basic earnings - profit attributable to shareholders 3 280 3 115
7 078 7 321 4 314 4 358
Loss on disposal of property, plant and equipment and intangible assets 17 7
The inventory write-down provision included in the valuation of
Impairment/(reversal of impairment) of property, plant and equipment and right-of-use assets 20 (4) merchandise purchased for resale was: 609 632 274 288

Insurance proceeds relating to property, plant and equipment (2) (21)

Cost of sales 22 144 19 144 16 757 15 881
Taxation (9) 5
Headline earnings 3 306 3 102 Included in cost of sales is the ineffective portion on cash flow hedges of less than R1m (2023: R1m).

Accounting policy
7.2 Number of shares Inventories are valued at the lower of cost or net realisable value. Cost is determined on the following basis:
The weighted average number of shares in issue amount to 257 016 391 (2023: 257 274 296). The weighted average number of • The cost of merchandise purchased for resale is determined using the weighted average method; and
shares is calculated with ordinary and B shares included in the base. • Consumables are valued at invoice cost on a first-in, first-out basis.

Costs include the charges incurred in bringing inventories to their present location and condition and are net of discounts from
7.3 Weighted dilution impact
suppliers. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion
expenses. Provision is made for slow-moving, redundant and obsolete inventory and shrinkage.
of all potential dilutive shares, which currently comprise share options and shares. A calculation is made in order to determine the
number of shares that could have been issued at fair value (determined as the average annual market price of the shares) based
For cash flow hedging, the effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash
on the monetary value of the subscription rights attached to outstanding options.
flow hedge reserve, while an ineffective portion is recognised immediately in the income statement in cost of sales.

Group and Company Significant accounting estimates

Shares 2024 2023 Provision for net realisable value of inventory
The provision for net realisable value of inventory represents management’s estimate of the extent to which merchandise on
Number of shares per basic earnings per share calculation 257 016 391 257 274 296
hand at the reporting date will be sold below cost. This estimate takes into consideration markdowns, past trends (including
Weighted average number of ordinary shares under option deemed to have been issued for historical stock sold below cost), evidence of impairment at year end (including age of inventory) and an assessment of future
6 886 125 5 960 075
no consideration saleability, which takes into account fashionability, seasonal changes and current economic environment.
Number of shares for calculation of diluted earnings per share 263 902 516 263 234 371

39 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 40

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9. Trade and other receivables

9.1 Trade and other receivables 9.2. Movement in the allowance for impairment of trade receivables

Group Company Group Company

R’m 2024 2023 2024 2023 R’m 2024 2023 2024 2023

Gross trade receivables 2 848 2 474 2 842 2 467 Balance at beginning of the year (246) (207) (245) (200)

Less allowance for impairment of trade receivables (397) (246) (396) (245) Impairment losses net of reversals 21 (39) 21 (45)

Net trade receivables 2 451 2 228 2 446 2 222 Provision increase due to model revision (172) - (172) -

Prepayments 175 198 128 102 Balance at end of the year (397) (246) (396) (245)

Right to recover product asset 8 7 8 7

Under IFRS 9, the group has elected the general approach for measuring the loss allowance for trade receivables due to there
Contract asset 29 1 29 - being a significant financing component on trade receivables, with calculation on a collective basis. For contract assets and
mobile receivables, the group has elected to apply the simplified method.
Other receivables^ 306 299 225 161
The group has established a policy to perform an assessment at the end of each reporting period of whether a financial
Total trade and other receivables 2 969 2 733 2 836 2 492
instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default
^Other receivables mainly relates to: salary control account (R16m), deposits (R18m), suppliers with debit balances (R18m), VAT asset (R50m) and rebate receivable (R65m)
occurring over the remaining life of the financial instrument. Accounts are written off at 6 months of payment default plus an
additional 6 months outstanding (effectively 12 month period). Trade receivables are grouped into Stage 1, Stage 2 and Stage
The ageing of the gross trade receivables is as follows*: 3 as described below:
Stage 1: When trade receivable is first recognised, the group recognises an allowance based on 12-month ECLs.
R’m Days from transaction 2024 2023 2024 2023

Stage 2: When the trade receivable has shown a significant increase in credit risk since origination, the group records an
Current 30 1 966 1 852 1 964 1 844
allowance for the lifetime ECLs. An indicator as an increase in credit risk includes an actual or expected internal
Status 1 60 338 333 337 333 credit rating downgrade for the borrower or decrease in behavioural scoring used to assess credit risk internally.
Status 2 90 133 115 131 115 Stage 3: Trade receivables considered credit-impaired. Financial assets are considered to be credit-impaired when one or
more events that have an unfavourable impact on its estimated future cash flows have occurred. The group records
Status 3 120 93 73 93 73
an allowance for the lifetime ECLs.
Status 4 150 64 55 64 56
The group follows an age-driven write off policy whereby all accounts, once it advances through the various delinquency
Status 5 180 254 46 253 46 status, are written off. A reassessment of the suitability of the write off point was performed and accounts are now written off
2 848 2 474 2 842 2 467
at 6 months of payment default plus an additional 6 months outstanding (effectively 12-month period).
The group’s ECL model is based on a statistical process called Markov modelling which focuses on modelling client’s behaviour
*The ageing status of gross trade receivables is based on the days from transaction which is different to the stages of receivables which is based on the date of default. There is no
correlation between the two
on a portfolio level to predict the amount of receivable that will fall into future write offs. The model incorporates historic and
forward looking economic data such as the current and future unemployment rate and future changes to debt service cost to
income and consumer price index (CPI). For balances and each cash flow components the model creates risk state transition
Trade receivables are amounts due from customers for merchandise sold or services rendered in the ordinary course of business matrices to forecast the balance movements within a portfolio and between successive risk states. In addition, the model has a
and are accounted for at amortised cost in accordance with the accounting policy disclosed in note 18. The group has provided built in, internal leading Indicator to make the model more responsive to business/market changes.
for receivables in all ageing status levels in accordance with the accounting policy disclosed further below.
During the year, a stage 3 charge off portfolio^ has been created as a result of a reassessment of the suitability of the write off
Before accepting any new credit customer, the group uses an external credit scoring system to assess the potential customer’s point and exclusion of post write-off recoveries from the entities ECL model. This results in an increase in the estimated total
credit quality and defines credit limits by customer, while ensuring compliance with the requirements of the National Credit gross carrying amount at default held in Stage 3 as well as an increase in the Lifetime ECL. The resultant net impact on net trade
Act. Credit limits and scoring are reviewed at least annually in accordance with the requirements of the National Credit Act and receivables is an increase in net trade receivables as disclosed in the Stage 3 >120 days and charge off portfolio as disclosed
upon request by a customer. Due to the nature of the business, there are no customers that represent more than 5% of the total within this note. The net impact on profit or loss was a credit of R3.4m.
balance of trade receivables. There has been no change to the credit policies of the group.
^Indicates a debt that has been written off as the company does not believe the debt is recoverable
Right to recover product asset represents the group’s right to recover the goods expected to be returned by customers. The
asset is measured at the former carrying amount of the inventory, less any expected costs to recover the goods, including any Significant accounting estimates
potential decreases in the value of the returned goods. The group updates the measurement of the asset recorded for any Provision for impairment of trade receivables
revisions to its expected level of returns, as well as any additional decreases in the value of the returned products. The provision for impairment of trade receivables represents management’s estimate of the extent to which trade receivables
at the reporting date will not be subsequently recovered, based on assumptions about risk of default and expected loss rates.
The contract asset represents the short-term portion of Mr Price Mobile (Pty) Ltd’s right to consideration in exchange for goods The group uses judgement in making these assumptions and selecting inputs to the impairment calculation. This estimate takes
or services that Mr Price Mobile (Pty) Ltd has transferred to the customer. Contract assets are measured at amortised cost and historic and forward looking economic data such as the current and future unemployment rate and future changes to debt
in accordance with the accounting policy for expected credit losses (ECL’s) disclosed below. service cost to income and consumer price index and current market factors.
CPI, unemployment rate and debt service cost are the forecast variables used in the economic model. Forecast scenarios
Prepayments and other receivables are stated at their nominal values. consider a base case at a 50% weighting, an optimistic case at 10% weighting and a cautious case at 40% weighting. The
likelihood assigned to the base case is due to the base case scenario incorporating forecasts that are likely to be achieved based
Interest is charged on outstanding accounts in accordance with the National Credit Act and is calculated using the effective on current available information and analyst predictions. The weighting reflects the likelihood of continued economic challenges
interest rate method. in the short to medium term while also allowing for the possibility of positive developments in the longer term. The scenarios take
into account improved book performance following the improved quality of new business and some economic variables slowly
returning to pre-COVID level economic conditions.

41 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 42

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The loss allowance provision for group and company as at year end is determined as follows: The allowance for impairment of trade receivables as at 30 March 2024 reconciles to the opening loss allowance for that
provision as follows:
30 March 2024 Stage 1 Stage 1 Stage 2 Stage 2 Stage 3 Stage 3 Total
Group R’m Stage 1 Stage 2 Stage 3 Total
>120 days
and charge Closing loss allowance as at 02 April 2022 97 59 51 207
Group R’m Not past due <30 days 31-60 days 61-90 days 91-120 days off portfolio Total
Amounts written off - - (356) (356)
Expected credit loss rate (ECL) 3.2% 11.0% 28.7% 44.9% 67.7% 68.1% 13.9%
Amounts recovered (1) (5) (8) (14)
Estimated total gross carrying amount 1 966 338 133 93 64 254 2 848 Change in loss allowance due to new trade and other receivables 41 - (11) 30
at default originated net of those derecognised due to settlement
Change in credit risk parameters (30) 16 393 379
12 month ECL (63) (37) - - - - (100)
Total balance as at 1 April 2023 107 70 69 246
Lifetime ECL - - (38) (42) (44) (173) (297)
Total ECL (63) (37) (38) (42) (44) (173) (397)

Net trade receivables 1 903 301 95 51 20 81 2 451 Group R’m Stage 1 Stage 2 Stage 3 Total
Closing loss allowance as at 01 April 2023 107 70 69 246
Company R’m
Amounts written off - - (379) (379)
Expected credit loss rate (ECL) 3.2% 11.0% 29.1% 44.9% 67.8% 68.3% 13.9%
Amounts recovered 16 4 4 24
Estimated total gross carrying amount 1 964 337 131 93 64 253 2 842 Change in loss allowance due to new trade and other receivables 46 (4) 114 156
at default originated net of those derecognised due to settlement, including
increase due to model revision
12 month ECL (63) (37) - - - - (100)
Change in credit risk parameters (68) 11 407 350
Lifetime ECL - - (38) (42) (43) (173) (296)
Total balance as at 30 March 2024 101 81 215 397
Total ECL (63) (37) (38) (42) (43) (173) (396)

Net trade receivables 1 901 300 93 51 21 80 2 446

Company R’m Stage 1 Stage 2 Stage 3 Total
1 April 2023 Stage 1 Stage 1 Stage 2 Stage 2 Stage 3 Stage 3 Total Closing loss allowance as at 2 April 2022 94 57 49 200
Group R’m Not past due <30 days 31-60 days 61-90 days 91-120 days >120 days Total
Amounts written off - - (346) (346)
Expected credit loss rate (ECL) 3.7% 11.1% 29.6% 49.3% 69.1% 79.1% 9.9%
Amounts recovered (1) (5) (8) (14)

Estimated total gross carrying amount 1 852 333 115 73 55 46 2 474 Change in loss allowance due to new trade and other receivables 44 (1) (18) 25
at default originated net of those derecognised due to settlement
Change in credit risk parameters (32) 19 393 380
12 month ECL (68) (37) - - - - (105)
Total balance as at 1 April 2023 105 70 70 245
Lifetime ECL - - (34) (36) (38) (33) (141)
Total ECL (68) (37) (34) (36) (38) (33) (246)

Net trade receivables 1 784 296 81 37 17 13 2 228 Company R’m Stage 1 Stage 2 Stage 3 Total
Closing loss allowance as at 01 April 2023 105 70 70 245
Company R’m
Amounts written off - - (376) (376)
Expected credit loss rate (ECL) 3.7% 11.1% 29.6% 49.3% 68.4% 69.6% 9.9%
Amounts recovered 16 4 4 24

Estimated total gross carrying amount 1 844 333 115 73 56 46 2 467 Change in loss allowance due to new trade and other receivables 45 (5) 112 152
at default originated net of those derecognised due to settlement, including
increase due to model revision
12 month ECL (68) (37) - - - - (105) Change in credit risk parameters (66) 12 405 351
Lifetime ECL - - (34) (36) (38) (32) (140) Total balance as at 30 March 2024 100 81 215 396
Total ECL (68) (37) (34) (36) (38) (32) (245)

Net trade receivables 1 776 296 81 37 18 14 2 222

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9.3 Other receivables Value-Added Tax (VAT)

The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of receivables or payables
Group Company in the statement of financial position.
R’m 2024 2023 2024 2023
Expenses and assets are recognised net of the amount of VAT, except:
The expected maturity for other receivables is as follows: • When the VAT incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the
On demand 18 33 12 38 VAT is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable.

Less than three months 164 185 106 61

Revenue and income are recognised net of the amount of VAT.
Three months to one year 124 81 107 62
Dividend Withholding Tax (DWT)
306 299 225 161
DWT is a tax levied on the beneficial owner of the shares instead of the company. The tax is withheld by the company and
is paid over to the South African Tax Authority on the beneficiaries’ behalf. The resultant tax expense and liability has been
No ECL provision has been raised as the other receivable balance is not considered material.
transferred to the shareholder and is no longer accounted for as part of the tax charge for the company. Amounts not yet paid
Accounting policy over to the South African Tax Authority are included in trade and other payables and the measurement of the dividend amount
Trade receivables, which generally have 6 to 12 month terms are initially recognised at fair value and subsequently measured is not impacted by the withholding tax.
at amortised cost, namely the original invoice amount plus associated costs and interest charges to date, less any impairment
allowance for uncollectible amounts, and are classified as ‘loans and receivables’. Various economic factors and changes in
the delinquency of payments are considered indicators that the trade receivables are impaired. The carrying amount of the
asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income statement
within selling expenses. 11. Cell captive structure
The group retails insurance products to customers through a cell arrangement with Guardrisk, with the company being the cell
Bad debts are written off in the income statement when it is considered that the group will be unable to recover the debt and owner. The principal risk that insurance cells face is that the actual claims and benefit payments, or the timing thereof, differ from
it has been handed over for collection. Subsequent recoveries of amounts previously written off are credited against selling expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent development
expenses in the income statement. of long-term claims. Therefore, the objective of the cells is to ensure that the insurance liabilities are sufficient. Reserves are
available to cover those potential liabilities.
Other receivables are initially measured at fair value and are subsequently measured at amortised cost and are carried net of
any accumulated impairment. Contracts under which the group accepts significant insurance risk from another party (the policyholder) by agreeing to
compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder or other
beneficiary are classified as insurance contracts. A reinsurance contract is a contract issued by one insurer (the reinsurer)
to compensate another insurer (the cedant) for losses on one or more contracts issued by the cedant. For third party cells,
the group, being the cell owner, is accepting acting as a reinsurer since significant insurance risk is transferred from the cell
10. Trade and other payables
insurer (Guardrisk) to the cell owner (the group) through the cell shareholder agreement, due to the cell owner being required
Group Company
to recapitalise the cell should the need arise as a result of poor claims experience. The group accounts for the cell shareholder
agreement as an insurance contract issued under IFRS 17 Insurance Contracts.
R’m 2024 2023 2024 2023
The group adopted IFRS 17 Insurance Contracts in the current year, replacing IFRS 4 Insurance Contracts. IFRS 17 establishes
the principles for the recognition, measurement, presentation and disclosure of insurance contracts. The standard outlines a
Trade payables 3 631 3 530 2 577 2 309 general model, as well as a simplified model known as the premium allocation approach (PAA) for shorter duration contracts.
Other payables* 1 530 1 334 1 146 932 As the cell shareholder agreements have a short contract boundary based on the rights and obligations of the agreements, the
group adopted the PAA.
Refund liability 14 13 14 13
The main risks that the insurance cells are exposed to are as follows:
5 175 4 877 3 737 3 254
• Mortality risk: the risk of loss arising due to policyholder death experience differing from that expected
*Other payables comprises: sundry creditors R576m (2023: R422m) bonuses/incentives R223m (2023: R146m), leave pay provision R152m (2023: R151m), lay-by deposits R139m • Morbidity risk: the risk of loss arising due to policyholder health experience differing from that expected
(2023: R133m), turnover rental R73m (2023: R71m), gift vouchers R43m (2023: R42m), debtors with credit balances R37m (2023: R41m), PAYE R24m (2023: R9m) and withholding • Expense risk: the risk of loss arising from expense experience differing from that expected
tax R22m (2023: R15m)
• Policyholder decision risk: risk of loss arising due to policyholder experiences (lapses and surrenders) differing from that
Terms and conditions of the above financial liabilities: expected
Trade payables are non-interest bearing and are settled on terms that vary between date of ownership plus 10 days to 30 days
from statement for foreign suppliers and 10 to 90 days from statement for local suppliers, depending on the procurement source. The risk structure per product is as follows:
Guardrisk Insurance Company Limited (Cell number 136)
Other payables are non-interest bearing and are settled on average 30 days from statement. Mr Price Group Limited bears 100% of the risk for all products, which consists of: Lost card protection, Identity Theft and the
group’s motor vehicle cell.
Accounting policy
Trade payables, which are primarily settled on a 10 to 90 day terms, are initially measured at cost, which is considered Guardrisk Life Limited (Cell number 048)
to be the fair value of the consideration to be paid in the future for goods and services rendered. These are subsequently Mr Price Group Limited bears 100% of the risk for all products which consists of: Customer Protection, 360 Degrees Protection,
measured at amortised cost using the effective interest rate method. Other payables are initially measured at fair value and Medinet Critical Illness, A2B Commuter Personal Accident, Her Health, Group Funeral.
are subsequently measured at amortised cost.
Guardrisk Insurance Company Limited (Cell number 316)
Mr Price Mobile (Pty) Ltd bears 100% of the risk for all insurance products which consist of: Customer Protection and Mobile
A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is
Device Protection.
measured at the amount the group ultimately expects it will have to return to the customer. The group updates its estimates
of refund liabilities (and the corresponding change in the transaction price) at the end of each reporting period.
The opening to closing reconciliation of the liability for remaining coverage (LRC) and the liability for incurred claims (LIC) is
presented on the following page:

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On initial recognition of each group of contracts, the carrying amount of the liability for the remaining coverage is measured
Group and company 2024 2023
at the premiums received on initial recognition minus any insurance acquisition cash flows allocated to the group at that date,
LIC LIC and adjusted for any amount arising from the derecognition of any assets or liabilities previously recognised for cash flows
LRC Total asset LRC Total asset
R’m BEL1 RA2 BEL RA related to the group. Where the coverage period is one year or less, the group has elected to expense insurance acquisition
cash flows as they are incurred.
Reinsurance asset 219 190
Reinsurance liability (44) (43) Subsequently, the carrying amount of the liability for remaining coverage is increased by any premiums received and the
amortisation of insurance acquisition cash flows recognised as expenses (where not expensed upfront), and decreased by the
Opening balance^ 219 (42) (2) 175 190 (41) (2) 147 amount recognised as insurance revenue for services provided. On initial recognition of each group of contracts, the
company expects that the time between providing each part of the services and the related premium due date is no more than
Statement of comprehensive income 135
a year. Accordingly, the group has chosen not to adjust the liability for remaining coverage to reflect the time value of money
- Insurance Revenue* 199 - - 199 230 - - 230 and the effect of financial risk.
- Insurance Service expense
The group recognises the liability for incurred claims of a group of insurance contracts at the amount of the fulfillment cash
- Claims - (30) - (30) - (28) - (28) flows relating to incurred claims. The future cash flows are discounted (at current rates) unless they are expected to be paid
in one year or less from the date the claims are incurred.
- Tax - (50) - (50) - (50) - (50)
- Directly attributable expense - - - - (32) - (32)

Insurance finance income and expense 16 - - 16 13 - - 13

Cashflows
Premiums (198) - - (198) (230) - - (230)
Claims and other insurance service - 80 - 80 - 109 - 109
expense paid
Transferred for future distribution 118 - - 118 121 - - 121

Diividend (186) - - (186) (105) - - (105)

Closing balance 168 (42) (2) 124 219 (42) (2) 175
Reinsurance asset 219
Reinsurance liability (44)

The group has not applied a retrospective restatement as the impact of the transition to IFRS 17 was not material. 2023 has been disclosed for information purposes to provide for
more meaningful disclosure.

^Opening balances reflect the reinsurance assets and liabilities per IFRS 4 which were not restated for transition to IFRS 17
*Insurance revenue is included within “Other revenue” in the Income Statement
1. Estimates of present value of future cash flows (BEL)
2. Risk adjustment (RA)

Sensitivity analysis
Insurance liabilities are subject to changes in variables that could affect the value of the liability due. The effect of any sensitivity
is considered immaterial. Within the LIC, the cash flow projections for claims are based on best estimate, with a Risk Adjustment
determined in line with IFRS 17, resulting in a confidence level of between the 75th and 85th percentile.

Accounting policy
The group assumes insurance risk in the normal course of business.

The company applies IFRS 17 in the measurement of the shareholder agreements with Guardrisk. As the cell shareholder
agreements have a short contract boundary based on the rights and obligations of the agreements, the group will apply the
PAA. The group has applied a fully retrospective transition approach to all contracts in force on transition date.

An insurance contract asset is recognised on the balance sheet as the “cell captive structure”. This insurance contract asset
comprises the liability for remaining coverage and the liability for incurred claims. The group considers each of its shareholders
agreements as a separate portfolio, but aggregates the portfolios within the disclosed reconciliations.

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13.2 Working capital changes

12. Cash and cash equivalents Group Company

R’m 2024 2023 2024 2023
Group Company
R’m 2024 2023 2024 2023
(Increase)/decrease in trade and other receivables (169) 115 (278) 24
Bank balances and other cash 1 556 1 030 662 579
Call accounts 1 242 412 907 379 Decrease/(increase) in inventories 265 (847) 58 (672)

Cash and cash equivalents 2 798 1 442 1 569 958 (Increase)/decrease in trade and other payables (23) 51 190 359

(Increase) in re-insurance asset - (30) - (30)

Accounting policy
Cash and cash equivalents comprise cash at banks, on hand and short-term deposits and overnight call accounts in accordance Decrease in cell captive structure 49 - 49 -
with the group’s treasury policy, with an original maturity of three months or less, net of bank overdrafts. Cash and cash equivalents
Increase in reinsurance liabilities - 1 - 1
are classified as financial asset measured at amortised cost.
Increase in current amounts owing to consolidated entities - - 8 22

(Increase) in current amounts owing by consolidated entities - - (200) (20)

122 (710) (173) (316)

13. Notes to the statements of cash flows

13.3 Taxation paid
Refer to financing reconciliations in note 19 and 20 for an explanation of the movements in the financing activities of the group
and company. Group Company
13.1 Operating profit before working capital changes R’m 2024 2023 2024 2023

Group Company Amounts unpaid at beginning of the year 368 (206) 146 (173)
Taxation 297 63 284 65
R’m 2024 2023 2024 2023
Deferred taxation 71 (269) (138) (238)
Profit (loss) before taxation 4 662 4 403 3 907 3 953

Adjustments for: Amounts charged to the income statements 1 238 1 177 1 011 999
Taxation 1 276 1 102 1 031 921
Depreciation of property, plant and equipment 538 355 336 261
Deferred taxation (38) 75 (20) 78
Depreciation of right-of-use asset 2 258 1 863 1 566 1 501

Amortisation of intangible assets 123 106 76 75 Amounts charged to equity (41) (19) (40) (18)
Taxation (33) (16) (33) (16)
Loss on disposal and scrapping of property, plant and equipment 17 7 16 7
Deferred taxation (8) (3) (7) (2)
Impairment of property, plant and equipment 1 1 1 1

Interest on lease liabilities 711 651 581 570 Taxation acquired - 23 - -

Impairment/(reversal of impairment) of right-of-use assets 19 (3) 17 (3) Deferred taxation acquired - 244 - -

Proceeds from insurance relating to property, plant and equipment (2) (21) (2) (21) Amounts unpaid at end of the year (179) (368) 14 (146)
Finance costs 95 51 42 30 Taxation (131) (297) (128) (284)

Finance income received (161) (185) (114) (160) Deferred taxation (48) (71) 142 138

Interest on trade receivables (457) (402) (456) (401) Amounts paid 1 386 851 1 131 662
Dividend income - - (34) (160)
13.4 Receipts in respect of long-term receivables
Other non-cash items 81 143 122 75

Share option expenses 121 188 121 188 Decrease in other long-term receivables 3 11 1 6

Other ^ (40) (44) 1 (112) Net amounts received 3 11 1 6

13.5 Dividends paid

7 885 6 970 6 058 5 729
Dividends paid to ordinary and B ordinary shareholders 1 926 2 208 1 926 2 206
^Other relates to non-cash items, mainly provisions and accruals Less: dividends on shares held by staff share trusts (38) (41) - -
Add: dividends paid by Partners Share Trust 23 25 - -
1 911 2 192 1 926 2 206

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Operating Assets

14. Property, plant and equipment

Furniture, fittings, equipment Improvements to
Computer equipment Land Buildings Total
and vehicles leasehold premises
R’m 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Group
Net carrying amount at beginning of the year 2 425 1 530 255 209 274 206 186 186 458 387 3 598 2 518
Cost or carrying amount 4 414 3 331 551 483 436 340 186 186 524 440 6 111 4 780
Accumulated depreciation and impairment (1989) (1 801) (296) (274) (162) (134) - - (66) (53) (2 513) (2 262)

Current year movements

Additions 856 659 73 108 101 96 - - - - 1 030 863
- external development/acquisition 856 663 73 108 101 96 - - - - 1 030 867
- items capitalised to work in progress - (4) - - - - - - - - - (4)
Acquired in business combination - 486 - 10 - - - - - 83 - 579
Disposals and scrapping (15) (6) (1) (1) (1) - - - - - (17) (7)
Impairments and write downs (1) (1) - - - - - - - - (1) (1)
Exchange differences -* 2 -* (1) - - - - - - -* 1
Depreciation (397) (245) (88) (70) (37) (28) - - (16) (12) (538) (355)

Net carrying amount at end of the year 2 868 2 425 239 255 337 274 186 186 442 458 4 072 3 598

Made up as follows:
Net carrying amount 2 868 2 425 239 255 337 274 186 186 442 458 4 072 3 598
Cost or carrying amount 5 126 4 414 608 551 534 436 186 186 524 524 6 978 6 111
Accumulated depreciation and impairment (2 258) (1 989) (369) (296) (197) (162) - - (82) (66) (2 906) (2 513)

Company
Net carrying amount at beginning of the year 1 797 1 454 238 207 250 199 186 186 377 387 2 848 2 433
Cost or carrying amount 3 621 3 160 522 472 398 321 186 186 441 440 5 168 4 579
Accumulated depreciation and impairment (1 824) (1 706) (284) (265) (148) (122) - - (64) (53) (2 320) (2 146)

Current year movements

Additions 589 510 58 97 86 76 - - - - 733 683
- external development/acquisition 589 514 58 97 86 76 - - - - 733 687
- items capitalised to work in progress^ - (4) - - - - - - - - - (4)
Acquired in business combination - -
Disposals and scrapping (14) (6) (1) (1) (1) - - - - - (16) (7)
Impairments and writedowns (1) (1) - - - - - - - - (1) (1)
Transfers - - - - - 1 - - - - - 1
Depreciation (214) (160) (78) (65) (33) (26) - - (11) (10) (336) (261)

Net carrying amount at end of the year 2 157 1 797 217 238 302 250 186 186 366 377 3 228 2 848

Made up as follows:
Net carrying amount 2 157 1 797 217 238 302 250 186 186 366 377 3 228 2 848
Cost or carrying amount 4 136 3 621 565 522 481 398 186 186 441 441 5 809 5 168
Accumulated depreciation and impairment (1 979) (1 824) (348) (284) (179) (148) - - (75) (64) (2 581) (2 320)

Details of buildings: Remaining extent of Erf 249 Cliffdale District, KwaZulu Natal Province, in extent of 19.5 ha
*Less than R1 million

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Details of security held over:

Instalment sale agreements: Motor Vehicles with carrying value of R41.6m.
Long term loans: First Mortgage on the property: Portion 183, Diepkloof 3 with
carrying amount of R76.3m.
Useful lives of the vehicles held under the instalment 5 years
sale agreements:

Accounting policy
Buildings occupied in the normal course of the business are recognised at cost less accumulated depreciation and impairment
losses. Furniture, fittings, equipment, vehicles, computer equipment and improvements to leasehold premises are stated at
historic cost less accumulated depreciation and any accumulated impairment and are depreciated, on the straight-line basis to
their expected residual values, over the estimated useful lives of the assets concerned which are as follows:

• Furniture and fittings 6 to 12 years

• Vehicles 5 to 6 years
• Other equipment 6 to 14 years
• Computer equipment 3 to 8 years
• Improvements to leasehold premises Lower of lease period of the premises and 12 years
• Buildings 40 years

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, and only when it
is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.

The assets’ expected residual values, estimated useful lives, and depreciation policy are reviewed, and adjusted if appropriate,
on an annual basis. Changes in the estimated useful life or expected pattern of consumption of future benefits embodied in
the asset are accounted for by changing the depreciation period or method, as appropriate, and are treated as changes in
accounting estimates.

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15. Intangible assets

Computer software Customer lists/supplier contracts Goodwill Trademarks Total
R’m 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Group
Net carrying amount at beginning of the year 431 431 109 24 3 105 1 379 1 600 205 5 245 2 039
Cost 783 720 166 56 3 105 1 379 1 600 223 5 672 2 378
Accumulated amortisation and impairment (352) (289) (57) (32) - - - (18) (427) (339)

Current year movements

Additions arising from 68 82 1 110 - 1 726 - 1 395 69 3 313
external development/acquisition 56 77 1 - - - - - 57 77
internal development 12 5 - - - - - - 12 5
acquired in business combination - - - 110 - 1 726 - 1 395 - 3 231
items capitalised to work in progress^ - - - - - - - - - -

Disposals and scrapping - -* - - - - - - - -

Cost adjustment# - - - - (89) - - - (89) -
Impairments and write downs - - - - - - - - - -
Exchange differences - (2) - - (1) - - - (1) (2)
Amortisation (80) (80) (43) (25) - - -* -* (123) (105)

Net carrying amount at end of the year 419 431 67 109 3 015 3 105 1 600 1 600 5 101 5 245

Made up as follows:
Net carrying amount 419 431 67 109 3 015 3 105 1 600 1 600 5 101 5 245
Cost 883 783 166 166 3 015 3 105 1 618 1 618 5 682 5 672
Accumulated amortisation and impairment (464) (352) (99) (57) - - (18) (18) (581) (427)

Company
Net carrying amount at beginning of the year 413 411 - - 1 070 1 070 133 133 1 616 1 614
Cost 739 679 26 26 1 070 1 070 151 151 1 986 1 926
Accumulated amortisation and impairment (326) (268) (26) (26) - - (18) (18) (370) (312)

Current year movements

Additions arising from 66 77 - - - - - - 66 77
external development/acquisition 56 76 - - - - - - 56 76
internal development 10 1 - - - - - - 10 1
acquired in business combination - - - - - - - - - -
items capitalised to work in progress - - - - - - - - - -

Disposals and scrapping - - - - - - - - - -

Cost adjustment - - - - - - - - - -
Impairments and write downs - - - - - - - - - -
Transfers - - - - - - - - - -
Amortisation (76) (75) - - - - -* -* (76) (75)

Net carrying amount at end of the year 403 413 - - 1 070 1 070 133 133 1 606 1 616

Made up as follows:
Net carrying amount 403 413 - - 1 070 1 070 133 133 1 606 1 616
Cost 833 739 26 26 1 070 1 070 151 151 2 080 1 986
Accumulated amortisation and impairment (430) (326) (26) (26) - - (18) (18) (474) (370)

*Less than R1 million

^The cumulative balance of work in progress that is not subject to amortisation at year end amounts to R59 million (2023: R62 million)
#
Cost adjustment relates to adjustment of at acquisition fair value of right of use assets

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Goodwill in the group mainly relates to the Zambian business (R13m) and the acquisition of Power Fashion (R1 069m), Accounting policy
Yuppiechef (R292m) and Studio 88 (R1 636m) Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets
are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangible
Impairment testing of goodwill and indefinite useful life assets assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in profit and loss in the
Goodwill acquired through business combinations and indefinite useful life assets is tested annually for impairment. The period in which the expenditure is incurred.
recoverable amount of Studio 88 was determined based on a value in use calculation using cash flow projections covering
a 5-year period. A discount rate of 18.65% was used. Cash flows beyond the 5-year period are extrapolated using a 5.5% Computer software
growth rate. Comparable sales growth of 6.0% was estimated, with gross profit margins estimated at 38.2%. Acquired software not regarded as an integral part of hardware is capitalised at historic cost and is amortised on the straight-
line basis over its estimated useful life (2 to 10 years), from the date of its being commissioned into the group. All other costs
The recoverable amount of Power Fashion was determined based on a fair value less cost to sell calculation using cash that are directly associated with the production of identifiable software controlled by the group, and that are expected to
flow projections covering a 5-year period. A discount rate of 17.76% was used. Cash flows beyond the 5-year period are generate economic benefits exceeding 1 year, are recognised as part of the cost of the intangible assets. Direct costs include
extrapolated using a 4.5% growth rate. Comparable sales growth of 5.5% was estimated, with gross profit margins estimated the software development employee costs. Costs associated with developing software are recognised as an expense as
between 36.6% - 37.1%. incurred if it is not expected that they will provide future economic benefits to the group.

The recoverable amount of Yuppiechef was determined based on a value in use calculation using cash flow projections from Goodwill
covering a 5-year period. A discount rate of 17.27% was used. Cash flows beyond the 5-year period are extrapolated using Goodwill represents the excess of the cost of acquisition over the fair value of the net identifiable assets of the acquired
a 4.5% growth rate. Comparable sales growth of 6.0% was estimated, with gross profit margins estimated between 38.6% consolidated entity or operation at date of acquisition, and is carried at cost less accumulated impairment losses.
- 43.9%.
Trademarks
The calculation of value in use and fair value less costs to sell is most sensitive to the following assumptions: Trademarks represents the indefinite useful life brands acquired by the group. These brands were recognised at their at
acquisition fair values, less accumulated impairment losses.
Margins
Margins are based on values to be achieved over the 5-year strategy period. These are increased over the budget period for Supplier contracts
anticipated efficiency improvements. A 2% decrease in gross profit margins would result in an impairment in Yuppiechef and Supplier contracts and indefinite useful life assets were acquired from Yuppiechef and the Studio 88 Group. They are amortised
Studio 88 with no impairment in Power Fashion. over a straight-line basis over its estimated useful life of three years and three months from the date it being commissioned
into the group.
Discount rates
Discount rates represent the current market assessment of the risks specific to the CGU, taking into consideration the time value
of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates.

The discount rate calculation is based on a hypothetical market participant. The WACC takes into account both debt and equity.
The cost of equity is derived from the expected return on investment by the company’s investors. The cost of debt is based
on the interest-bearing loans the company is obliged to service. An increase of 3.5% in the discount rate would result in an
impairment in Yuppiechef, Power Fashion and Studio 88.

Significant judgements
In the prior year the group acquired the Studio 88 group including their trademarks. The valuation of the trademarks involves
judgement and estimate of key inputs being interest rates and future cash flow to measure the trademarks at their at acquisition
fair value. Upon acquisition the trademarks were assessed as having an indefinite useful life. Its useful life is reviewed each
reporting period to determine whether events or circumstances continue to support an indefinite useful life assessment. The
trademarks were assessed for impairment at the end of each reporting period.

Significant judgement was required in the assumptions relating to the testing of goodwill based on the expected trading
environment.

57 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 58

 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

16. Right-of-use assets 17. Long-term receivables and other investments

Net carrying amounts of right-of-use assets
Group Company
The carrying amounts of right-of-use assets are as follows:
R’m 2024 2023 2024 2023
Group Company Mr Price Mobile (Pty) Ltd long-term receivables - - - -
R’m 2024 2023 2024 2023 Total receivables 2 6 - -
Less: amount to be received in the next financial year transferred to (2) (6) - -
trade and other receivables
Vehicles and equipment 37 36 37 36
Cost 87 74 87 74 Long-term loans to suppliers 25 28 25 26
Accumulated depreciation (50) (38) (50) (38)
Other long-term receivables and other investments 19 19 30 19
Premises 7 200 7 701 5 838 6 438
Cash and cash equivalents 44 47 55 45
Cost 15 585 14 217 12 672 11 726
Accumulated depreciation (8 385) (6 516) (6 834) (5 288)
The Mr Price Mobile (Pty) Ltd long-term receivable refers to the portion of the handset debtor that is due beyond the next 12 months.
Total 7 237 7 737 5 875 6 474 The debtor is recognised when the handset is delivered to the customer and is amortised over the expected contract term.

Depreciation recognised on each class of right-of-use assets, is presented below. It includes depreciation which has been The contract asset represents the long-term portion of Mr Price Mobile (Pty) Ltd’s right to consideration in exchange for goods
expensed in the total depreciation charge in profit or loss (note 4). or services that Mr Price Mobile (Pty) Ltd has transferred to the customer.

Movement in right-of-use asset Accounting policy

Long-term receivables are classified as financial assets measured at amortised cost and are recorded at fair value at inception
Opening balance 7 737 6 315 6 474 5 909 using the effective interest rate implicit in the cash flows of the receivable. This effective interest rate is established by
Acquisition of Studio 88 - 759 - - considering the market rate of interest for a similar investment on the date of each contribution. The simplified approach is
used to measure the ECL on the contract asset and supplier loans. Refer to note 9 for further details.
Additions to leases and lease renewals 1 595 1 662 878 1 280
Lease modifications and remeasurements 182 861 106 783
Impairment/(reversal of impairment) of right-of-use asset (19) 3 (17) 3
Depreciation - Leasehold premises (2 246) (1 852) (1 554) (1 490) 18. Financial risk management
Depreciation - Vehicles (12) (11) (12) (11)
18.1 Financial risk management and financial instruments
7 237 7 737 5 875 6 474
Accounting for financial instruments
Right-of-use assets held at revalued amounts Financial instruments comprise investments in equity, loans receivable, trade and other receivables (excluding prepayments),
In the prior year, the right of use assets acquired through a business combination related to Studio 88. investments in self-insurance cell captives, cash and cash equivalents, other non-current liabilities (excluding provisions), bank
overdrafts, derivatives and trade and other payables.
Impairment of right-of-use asset
A loss-making store would be an indicator of impairment and its recoverable amount would need to be compared to its carrying
Recognition
value to determine if an impairment is required. Future cash flows for the store based on a 5-year forecast period were used in
Financial assets and liabilities are recognised in the group’s statement of financial position when the group becomes a party to
the impairment calculation. Discount rate of 16.1% was used. Revenue growth expectations in future years (FY2025 - FY2029)
the contractual provisions of the instruments. Financial assets are recognised on the date the group commits to purchase the
were between 3.2% - 7.0% p.a, with expense growth expected between 5.0% - 7.0% p.a. The current year impairment relates
instruments (trade date accounting); if not, they are classified as non-current. Financial assets are classified as current if it is
to the Apparel and Home segments. The prior year net reversal of impairment relates to the Apparel segment.
expected to be realised or settled within 12 months from the reporting date. Financial liabilities are classified as non-current if the
group has an unconditional right to defer payment for more than 12 months from the reporting date.
Accounting policy
Right-of-use assets are recognised at the commencement date of the lease and are measured at cost, less any accumulated
Classification
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use
All recognised financial assets that are within the scope of IFRS 9 are initially recognised at amortised cost, fair value through
assets includes the amount of lease liabilities recognised, initial direct costs and lease payments made at or before the
other comprehensive income or fair value through profit or loss. These financial assets are required to be subsequently measured
commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the
at amortised cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual
lease term. Right-of-use assets are subject to impairment. The value of future cash outflows for leases committed to for years
cash flow characteristics of the financial assets.
not yet commenced amounts to R191 million.
Financial liabilities are classified as measured at amortised cost except for those derivative liabilities that are measured at FVTPL.
Significant accounting estimate
Determination of the impairment calculation of right-of-use asset involves judgement on and estimate of key inputs being interest Measurement on initial recognition
rates, future cashflow and the duration of the lease contract including take up of lease options. All financial assets (unless it is a trade receivable without a significant financing component) and liabilities are initially measured at
fair value, including transaction costs, except for those classified as at FVTPL which are initially measured at fair value excluding
transaction costs. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are
recognised immediately in profit or loss. A trade receivable without a significant financing component is initially recognised at the
transaction price.

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 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

Subsequent measurement: Financial assets The group applies the economic adjustment model based on historical economic trends. The table below shows a reconcilia-
Subsequent to initial recognition, financial assets are measured as described below. tion of the loss allowances for the year under the IFRS 9 ECL model.

2024 Lifetime expected credit losses 2023 Lifetime expected credit losses
Category Subsequent measurement
12 month 12 month
FVTPL These financial assets are subsequently measured at fair value and changes therein Collectively Credit-impaired Collectively Credit-impaired
R’m expected Total expected Total
assessed financial assets assessed financial assets
(including any interest or dividend income) are recognised in profit or loss. credit losses credit losses

Amortised cost These financial assets are subsequently measured at amortised cost using the Group
effective interest method, less any impairment losses. Interest income, foreign Loss allowance at beginning of year 107 70 69 246 97 59 51 207
exchange gains and losses and impairments are recognised in profit or loss. Any Changes from updating the expected - - - - - - - -
gain or loss on derecognition is recognised in profit or loss. credit losses
Loans derecognised during the period 16 4 4 24 (1) (5) (8) (14)
Derivative assets Derivative assets are subsequently measured at fair value with changes therein
recognised in profit or loss. Newly originated / purchased loans 46 (5) 114 155 41 - (11) 30
Write offs - - (379) (379) - - (356) (356)

Subsequent measurement: Financial liabilities Changes in models/risk parameters (69) 12 408 351 (30) 16 393 379
All financial liabilities, excluding derivative liabilities, are subsequently measured at amortised cost using the effective interest Loss allowance at end of year 100 81 216 397 107 70 69 246
method. Derivative liabilities are subsequently measured at fair value with changes therein recognised in profit or loss. Company
Loss allowance at beginning of year 105 70 70 245 94 57 49 200
Derecognition
Changes from updating the expected - - - - - - - -
Financial assets are derecognised when the rights to receive cash flows from the assets have expired or have been transferred
credit losses
and the group has transferred substantially all risks and rewards of ownership.
Loans derecognised during the period 16 4 4 24 (1) (5) (8) (14)
Newly originated / purchased loans 45 (5) 112 152 44 (1) (18) 25
Financial liabilities are derecognised when the obligations specified in the contracts are discharged, cancelled or expire. On
derecognition of a financial asset/liability, any difference between the carrying amount extinguished and the consideration paid Write offs - - (376) (376) - - (346) (346)
is recognised in profit or loss. Changes in models/risk parameters (66) 12 405 351 (32) 19 393 380
Loss allowance at end of year 100 81 215 396 105 70 70 245
Impairment
The group calculates its allowance for credit losses as expected credit losses (ECLs) for financial assets measured at amortised
cost and contract assets. Where “changes in the expected credit losses” represents changes in roll forward rates and how much the group expects to
roll to write off over the lifetime of the asset and “changes in models/risk parameters” denotes the combination of changes in
Expected credit losses risk classifications (risk classifications within the model segmentation such as delinquency stage and behaviour scores etc.),
The group has the following financial assets subject to the ECL model: recovery, discount rate and economic adjustments.
• Trade receivables;
• Contract assets; The following table is a reconciliation of the opening balance and closing balance of the gross carrying amount of financial assets
• Long-term receivables; giving rise to the provision:
• Other receivables; and
Group
• Bank balances.
Gross carrying amount at beginning of year 2 177 199 98 2 474 2 007 173 79 2 259
Newly originated / purchased loans 6 594 144 43 6 781 4 743 94 27 4 864
Write offs - - (376) (376) - - (346) (346)
Loans that have been derecognised (5 856) (141) (121) (6 118) (4 190) (82) (69) (4 341)
during the period
Other changes (611) 31 667 87 (383) 14 407 38
Gross carrying amount at end of year 2 304 233 311 2 848 2 177 199 98 2 474

Company
Gross carrying amount at beginning of year 2 176 193 98 2 467 2 005 162 79 2 246
Newly originated/purchased loans 6 496 142 42 6 680 4 731 94 27 4 852
Write offs - (376) (376) - - (346) (346)
Loans that have been derecognised (5 769) (137) (119) (6 025) (4 180) (82) (69) (4 331)
during the period
Other changes (602) 31 667 96 (380) 19 407 46
Gross carrying amount at end of year 2 301 229 312 2 842 2 176 193 98 2 467

The other changes line refers to the changes in risk classification movements between Stages 1 - 3.

61 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 62

 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

General hedge accounting 18.2 Financial risk management

The group uses derivative financial instruments such as forward exchange contracts to hedge its risks associated with foreign The group is exposed, directly and indirectly, to market risk, including primary changes in interest rates and currency exchange
currency fluctuations. Derivative financial instruments are initially recognised at fair value on the date the contract is entered rates and uses derivatives and other financial instruments in connection with its risk management activities. The board of
into and are subsequently measured at fair value, which is calculated with reference to current forward exchange contracts with directors has delegated accountability to management for designing and implementing the process of risk management and
equivalent maturity periods. Gains or losses arising from fair value adjustments are taken directly to the cost of sales, except for integrating it into the daily activities of the group.
the effective portion of cash flow hedges, which is recognised in OCI.
18.3 Capital and treasury risk management
It is the group’s policy to hedge foreign exchange risk associated with committed purchase orders and highly probably forecast The group which is a primarily cash-based business, monitors capital through a process of analysing the underlying cash flows,
orders which are denominated in foreign currencies, with the forecasts based on a combination of historical buying trends which in turn drives the residual capital structure, consisting of share capital, share premium, reserves and retained income as
and current strategy. Forward exchange contracts constitute the majority of hedges taken out. In order to comply with its risk quantified in the statement of changes in equity. The group manages its capital to ensure that it will be able to maintain healthy
management strategy, the group enters into various hedging instruments, for example vanilla and synthetic forward exchange capital ratios in order to sustain its business and maximise shareholder value. Any adjustments are made in light of economic
contracts to hedge the foreign currency risk arising from the aforementioned forecast import transactions. conditions and may include adjusting dividend cover or returning capital to shareholders.

A hedge book utilising a portfolio approach will have a lower volatility when compared to a hedge book using only forward Due to its level of net cash resources, the group has no material borrowings. Cash reserves are available to meet current working
contracts. In addition to vanilla FECs, the hedging instruments approved by the FX Committee and main board are Options. The capital and capital investment requirements. Costs and cash are actively managed. Refer to note 18.8 Liquidity management for
purchase and sale of an equal and opposite call and put will equate to a synthetic forward which is equivalent to a FEC and can borrowing facilities.
be used for hedge accounting. To reduce the cost of hedging, an additional put can be sold with the premium reducing the cost
of the synthetic forward. However, this additional put will not qualify as a hedging instrument as it is a net written option. The treasury function is administered at group level where strategies for the funding of working capital requirements and capital
expenditure projects are implemented, taking into account cash flow projections and expected movements in interest rates. The
At the inception of a hedge relationship, the group formally designates and documents the hedge relationship to which it wishes group has a policy of remaining highly liquid in order to have the available cash flow to fund expansion of existing businesses
to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation and any possible new ventures.
includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how
the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes 18.4 Interest rate risk management
in the hedged item’s cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving The group is exposed to interest rate risk from the variable rate applicable to its cash and cash equivalents. Interest rate
offsetting changes in the cash flows and are assessed on an ongoing basis to determine that they actually have been highly risk is managed through the investment of cash and cash equivalents in the appropriate mix of short-term instruments with
effective throughout the financial reporting periods for which they were designated. counterparties who possess a high quality credit standing.

The general hedge accounting requirements retain the three types of hedge accounting. However, greater flexibility has been An interest sensitivity analysis detailing a 150bps adjustment to the effective interest for cash and cash equivalents has been
introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that set out below:
qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In
addition, the effectiveness test has been overhauled and replaced with the principle of an ‘economic relationship’. Retrospective
Group Company
assessment of hedge effectiveness is also no longer required.
R’m 2024 2023 2024 2023
Consistent with prior periods, the group has continued to designate the change in fair value of the entire forward contract, i.e.
Rate variance +1.5% 21 45 24 14
including the forward points, as the hedging instrument in the group’s cash flow hedge and fair value hedge relationships.
-1.5% (21) (45) (24) (14)
For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging the exposure to variability in
The prime interest rate increased 50bps during the FY2024 financial year.
cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast
transaction or the foreign currency risk in an unrecognised firm commitment.
The applicable interest rates during the period were as follows:
The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve, while any
Group and Company
ineffective portion is recognised immediately in the income statement in cost of sales.
R’m 2024 2023
The group uses forward currency contracts as hedges of its exposure to foreign currency risk in forecast transactions.
Average

When the hedged item results in the recognition of a non-financial asset or non-financial liability, the amounts recognised in OCI Repo interest rate 8.18% 5.91%
are transferred to the initial cost or other carrying amount of the non-financial asset or liability. If the hedging instrument expires Prime interest rate 11.68% 9.41%
or is sold, terminated or exercised without replacement or rollover (as part of the hedging strategy), or if its designation as a
hedge is revoked, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously Closing
recognised in OCI remains separately in equity until the forecast transaction occurs.
Repo interest rate 8.25% 7.75%
Significant judgements Prime interest rate 11.75% 11.25%
The group has applied significant judgements in determining which instruments qualify as hedging instruments. The group has
applied judgement to the separate contracts of purchased options. A synthetic forward (consisting of a purchased option and 18.5 Investment in foreign operations
a written option) has no net premium received, the critical terms of amount, strike price, expiration date and settlement date The group is directly exposed to exchange rate fluctuations through its investments in operations outside South Africa. All
of the purchased and written option are the same, and the notional amount of the written option is not greater than that of the amounts lent to consolidated entities are rand denominated. The group’s investment exposure to currency fluctuations is limited
purchased option as notional amounts are the same. Therefore the synthetic forward is not a net written option and would be an to subsidiaries in Botswana, Nigeria, Ghana, Zambia, Mozambique, Kenya and Poland as the other countries in which the group
eligible hedging instrument. is invested have currencies that are pegged to the rand. The group’s sensitivity to a 10% increase and decrease in the rand
against the pula, naira, cedi, Kenyan shilling, metical, kwacha and Polish zloty respectively does not have a significant impact.
A separate contract for a stand alone put option would be only a written contract and would not be eligible as a hedging
instrument. There is no contractual linkage between the synthetic forward and the stand alone put option.

63 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 64

 Contents Statutory information Primary statements Notes to the financial statements I N T EGRAT ED REP O RT 2024 - AN N U AL F IN AN C IAL STATE ME NT S

18.6 Foreign exchange risk management In the prior year, the options held was:
The treasury function, administered centrally, is responsible for the overall review and management of the group’s foreign exchange
risk. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in Current Exchange rate Rand equivalent Exchange rate Fair value
foreign exchange rates. The group’s exposure to the risk of changes in foreign exchange rates relates primarily to the group’s commitment R/US$ - average at contract rate R/US$ - year end adjustment (loss)/
operating activities and the group’s net investments in foreign subsidiaries. Foreign exchange risk is managed through the adoption Group and Company US$’m contract rate R’m revaluation rate gain R’m
of a framework which governs, amongst other things; the current exposure, the decision to hedge an exposure, identification of the 2023
hedged item, checking effectiveness of hedge and the applicable hedge ratio.
- Asset 35 17.17 594 17.82 2
18.6.1 Transactions in foreign currencies - Liability 2 18.20 36 17.84 (1)
The group manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12-month period
for hedges of forecasted purchases. 37 17.22 630 17.82 1

When a derivative is entered into for the purpose of being a hedge, the group negotiates the terms of the derivative to match
At year end the revaluation on the outstanding foreign creditors was:
the terms of the hedged exposure on a portfolio basis. For hedges of forecast transactions, the derivative covers the period of
exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting payable that
2024
is denominated in the foreign currency.
- Asset 17 19.06 328 18.88 (3)
Foreign exchange forward contracts are measured at fair value through OCI if they qualify as being effective. These are designated
- Liability 13 18.68 248 18.88 3
as hedging instruments in cash flow hedges of forecast purchases in USD. These forecast transactions are highly probable. The
terms of the foreign currency forward contracts approximate the terms of the expected highly probable forecast transactions. 30 18.89 576 18.88 -
2023
The below tables presents information relating to the group’s commitment to purchase foreign currency at year end.
- Asset 21 18.30 381 17.79 (11)
At year end forward exchange contract commitments were:
- Liability 17 18.11 310 0.42 (302)
Current Exchange rate Rand equivalent Exchange rate Fair value
38 18.21 691 9.97 (313)
commitment R/US$ - average at contract rate R/US$ - year end adjustment (loss)/
Group and Company US$’m contract rate R’m revaluation rate gain R’m The applicable spot rates of exchange during the period were as follows:
2024
Group and Company
- Asset 14 18.89 259 19.01 2
R’m 2024 2023
- Liability 51 18.99 963 18.95 (2)
USD - Average 18.73 17.00
65 18.97 1 222 18.97 -
USD - Closing 18.88 17.79
2023
- Asset 25 17.11 431 17.76 16 Presented below is the reconciliation of the amounts added to/(subtracted from) the hedging reserve loss as disclosed under
other comprehensive income:
- Liability 21 18.39 388 17.86 (11)
46 17.69 819 17.81 5 Opening balance 20 (24)

At year end there were no options held nor any oil hedge and synthetic exchange contractual commitments. Mark-to-market adjustments (27) 61
Amounts reclassified to the cost of the non-financial asset recognised - -
In the prior year, the oil hedge commitment was: Deferred tax 7 (17)

Fair value adjustment (loss)/ Closing balance -* 20

Group and Company Strike Price US$ Strike Price R gain R’m
*Less than R1 million
2023
The hedged item creates an exposure to utilise ZAR in settling a foreign currency denominated obligation (i.e. USD), and the
- Asset 770 14 (3) hedging instruments enable the entity to purchase USD and sell ZAR. An economic relationship therefore exists between the
- Liability - - - hedged item and hedging instrument as the terms of the FECs or synthetic forward reasonably match the terms of the expected
highly probable forecast transactions (purchase of inventory) on a monthly basis (i.e. they are both for the same amount of foreign
770 14 (3)
currency, the maturity date of the hedging instrument aligns to the expected inventory delivery month, and the difference be-
In the prior year, synthetic forward exchange contractual commitments was: tween the FEC maturity date and the ultimate payable settlement date is not considered significant when evaluating the volatility
in the forward points differential between the two dates). It is therefore considered that the comparability of the critical terms of
Current Exchange rate Rand equivalent Exchange rate Fair value the hedged items and the hedging instruments will result in a high degree of offset.
commitment R/US$ - average at contract rate R/US$ - year end adjustment (loss)/
To calculate the hedge ineffectiveness, the group uses the hypothetical derivative method and compares the changes in the fair
Group and Company US$’m contract rate R’m revaluation rate gain R’m
value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks for each
2023 layer designated.
- Asset 69 17.17 1 233 17.82 45
Ineffectiveness is measured as the excess of the cumulative change in the fair value of the hedging instrument over the change
- Liability 4 18.20 72 17.84 (1) in the fair value of the hedged item (calculated based on the hypothetical derivative method). The ineffectiveness is calculated
73 17.22 1 305 17.82 44 on each reporting date, on a monthly basis when the basis adjustment is recorded (i.e. on delivery date), and when there is a
change to the terms of the hedge relationship. The amounts retained in OCI at 30 March 2024 are expected to mature and affect
the statement of profit or loss in FY2025.

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The expected maturity of the group’s foreign currency commitments are as follows: 18.7 Credit risk management
Credit risk is concentrated principally in periodic short-term cash investments, in trade receivables, long-term receivables
Group and Company Less than Three months One to and loans to consolidated entities. The group deposits short-term cash surpluses only with major banks of high quality credit
US$’m On demand three months to one year five years Total standing. The granting of credit to trade debtors is controlled with statistical scoring models and performance parameters
2024 which are reviewed on a regular basis. The maximum exposure in respect of trade receivables and the group’s risk management
policies regarding trade receivables are disclosed in note 9.
Forward exchange contracts accounted for - (64) - - (64)
as hedges The credit risk assessment of financial assets that are neither past due nor impaired are performed regularly with reference to
Foreign trade creditors at year end - (30) - - (30) external credit ratings (where available) or based on the historical default rates related to the specific counterparty. The table
below summarises the group’s internal rating of financial assets as well as the key inputs into the rating selection.
- (94) - - (94)

2023 Financial assets Credit risk assessment Key considerations

Forward exchange contracts accounted for - (46) - - (46) Long-term receivables Low The long-term receivables have been assessed as low as the group
as hedges and other investments has a well established credit policy under which each individual
Options - 32 5 - 37 is assessed for creditworthiness based on information provided
(both by the applicant and credit bureau data), statistical scoring
Synthetic forward exchange contracts - (56) (17) - (73) models, performance data and an assessment of affordability.
accounted for as hedges
Credit exposure per individual is reviewed regularly and adjusted
Foreign trade creditors at year end 17 21 - - 38 accordingly if required.
17 (49) (12) - (44)
Trade and other Low Refer to Note 9
receivables

The group’s sensitivity to a movement in exchange rates related to the forward exchange contracts held, as well as the outstanding Derivative financial Low The group limits its exposure to credit risk through dealing with well-
foreign creditor over the financial year and its related impact on profit and equity is presented in the table below: instruments established financial institutions with high credit standings, and thus
management does not expect any counterparty to fail to meet its
Cash and cash Low obligations. The financial institutions used by the group have a Fitch’s
Group and Company Group and Company
equivalents credit rating of BB-.
Other Other
Profit comprehensive Profit comprehensive
before tax income before tax income
The analysis below details the group’s sensitivity to a 1% increase and decrease in the interest rate charged to debtors and its
R’m 2024 2024 2023 2023 effect on profit before tax for the year.
Rate variance - US$
Group Company
Forward exchange contracts +10% - 122 - 82
accounted for as hedges R’m 2024 2023 2024 2023

-10% - (122) - (82) Rate variance +1% 25 24 25 25

-1% (25) (24) (25) (25)
Synthetic forward exchange +10% - - - 126
contracts accounted for as hedges
Further analysis below details the group’s sensitivity to a 2% increase and decrease in the interest rate charged to debtors and
-10% - - - (126)
its effect on profit before tax for FY2024.

Options +10% - - 63 - Group Company

-10% - - (63) - R’m 2024 2023 2024 2023
Rate variance +2% 51 48 50 49
Foreign trade creditors at year end +10% 58 39 -
-2% (51) (48) (50) (49)
-10% (58) (39) -
At 30 March 2024 the group did not consider there to be any significant concentration of credit risk for which it had not
Total +10% 58 122 102 208 adequately provided.
-10% (58) (122) (102) (208)

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18.8 Liquidity management 18.9 Category and fair value of financial instruments
The group manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast Financial instruments as disclosed on the statement of financial position are accounted for using the policies applicable and
and actual cash flows. The group has significant cash reserves and minimal borrowings which enable it to borrow funds externally are catergorised below. All assets and liabilities for which fair value is measured or disclosed in the financial statements are
should it require to do so to meet any working capital or possible expansion requirements. As a consequence banking legislation categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
which requires fees to be paid relative to the size of the facility, the group has only entered into limited loan facility arrangements measurement as a whole:
to the extent that fees are not payable. The year end position was a follows:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
Group Company
indirectly observable
R’m 2024 2023 2024 2023 Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
Total lending facilities 2 092 3 000 2 092 3 000
Less: drawn down portion - - - -
Fair value Financial asset Derivatives Derivatives at fair Financial
Total undrawn banking facilities 2 092 3 000 2 092 3 000 Group measurement at amortised accounted for value through liabilities at
R’m using cost as hedges profit or loss amortised cost Total
Based on the group’s existing cash resources and expected future cash flows, there is no foreseeable need to enter into
2024
borrowings. Furthermore, due to the group’s strong financial position, should further borrowings be required, the group would
be able to obtain any necessary funding within a short period, subject to bank approval. Financial Assets 2 788 2 - - 2 790
Long-term receivables and other investments Level 2 44 - - - 44

Group Company Trade and other receivables Level 2 2 744 - - - 2 744

R’m 2024 2023 2024 2023 Derivative financial instruments Level 2 - 2 - - 2

Borrowings (excluding lease liabilities) (38) (56) - -

Bank balances 2 798 1 442 1 569 958 Financial Liabilities - (2) - (5 247) (5 249)

Net cash resources 2 760 1 386 1 569 958 Interest-bearing loans Level 2 - - - (72) (72)
Trade and other payables Level 2 - - - (5 175) (5 175)
The table below details the group’s expected maturity for its non-derivative financial liabilities: Derivative financial instruments Level 2 - (2) - - (2)

Group Less than Three months One to

R’m On demand three months to one year five years Total Total 2 788 - - (5 247) (2 459)
2024
Trade and other payables 377 4 229 569 - 5 175
Fair value Financial Derivatives Derivatives at fair Financial
Interest bearing loans 4 7 30 42 83 Company measurement assets at accounted for value through liabilities at
R’m using amortised cost as hedges profit or loss amortised cost Total
381 4 236 599 42 5 258
2023 2024

Trade and other payables 540 3 821 516 - 4 877 Financial Assets 3 324 2 - - 3 326
Interest bearing loans - 7 32 60 99 Long-term receivables and other investments Level 2 55 - - - 55
540 3 828 548 60 4 976 Trade and other receivables Level 2 2 704 - - - 2 704
Current amount owing by consolidated Level 2 565 - - - 565
entities
Company
R’m Derivative financial instruments Level 2 - 2 - - 2

2024
Trade and other payables 342 3 021 374 - 3 737 Financial Liabilities - (2) - (3 737) (3 739)
Current amounts owing to consolidated entities 46 - - - 46 Interest-bearing loans Level 2 - - - - -
388 3 021 374 - 3 783 Trade and other payables Level 2 - - - (3 737) (3 737)
2023
Derivative financial instruments Level 2 - (2) - - (2)
Trade and other payables 463 2 486 305 - 3 254
Current amounts owing to consolidated entities 46 - - - 46
Total 3 324 - - (3 737) (413)
Interest bearing loans 509 2 486 305 - 3 300

The group expects to meet its obligations from existing cash reserves and from operating cash flows.

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Fair value Financial Derivatives Derivatives at fair Financial

Group measurement assets at accounted for value through liabilities at
R’m using amortised cost as hedges profit and loss amortised cost Total
2023
Financial Assets 2 572 48 - - 2 623
Long-term receivables and other investments Level 2 47 - - - 47
Trade and other receivables Level 2 2 525 - - - 2 525
Derivative financial instruments Level 2 - 48 3 - 51

Financial Liabilities - (31) - (4 966) (4 997)

Interest-bearing loans Level 2 - - - (89) (89)
Trade and other payables Level 2 - - - (4 877) (4 877)
Derivative financial instruments Level 2 - (31) - - (31)

Total 2 572 17 3 (4 966) (2 374)

Fair value Financial Derivatives Derivatives at fair Financial

Company measurement assets at accounted for value through liabilities at
R’m using amortised cost as hedges profit and loss amortised cost Total
2023
Financial Assets 2 809 48 3 - 2 860
Long-term receivables and other investments Level 2 45 - - - 45
Trade and other receivables Level 2 2 390 - - - 2 390
Current amount owing by consolidated entitties Level 2 374 - - - 374
Derivative financial instruments Level 2 - 48 3 - 51

Financial Liabilities - (31) - - (3 285)

Trade and other payables Level 2 - - - (3 254) (3 254)
Interest-bearing loans Level 2 - (31) - - (31)
Derivative financial instruments Level 2 - - - - -

Total 2 809 17 3 (3 254) (425)

The fair value of long term receivables is measured using level 2 techniques. Fair values have been estimated using a discounted
cash flow model. The discounted cash flow model requires management to make assumptions about the model inputs, including
forecast cash flows, the discount rate, credit risk and volatility.

The fair value of forward exchange contracts is measured using level 2 techniques. The significant inputs into the Level 2 fair
value of forward exchange contracts are yield curves, market interest rates and market foreign exchange rates. There have been
no transfers between the levels during the year.

The fair value of options and synthetic forwards is measured using level 2 techniques. The significant inputs into the Level 2 fair
value of options and synthetic forwards are strike price of the option, current spot price, time to expiration, risk-free rate and
volatility.

The fair value of the oil hedge contract is measured using level 2 techniques. The significant inputs into the Level 2 fair value
of the oil hedge are volume (litres), daily ZAR price per litre, market foreign exchange rates and the average month/calculation
period.

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Financing Structure and Commitments

19. Lease obligations and lease liabilities

The group applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-
Group Company
value assets recognition exemption to leases of assets that are considered low value. Lease payments on short-term
R’m 2024 2023 2024 2023 leases and leases of low-value assets are recognised as an expense.

Movement in lease liabilities

Significant accounting estimates
Opening balance 9 121 7 411 7 678 6 928 Determination of the lease liabilities involves judgement on and estimate of key inputs being interest rates, future cashflow and
Additions for new leases and lease renewals 1 527 1 660 852 1 257 the duration of the lease contract including take up of lease options.

Acquisition through business combination (2023: Studio 88) - 848 - -

The group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option
Impact of lease modifications and remeasurements 59 820 28 757 to extend the lease if it is reasonably certain to be exercised. Judgement is exercised in determining the likelihood of exercising
extension options in determining the lease term, including considerations of the initial term of the lease, economic uncertainty of
Interest on lease liabilities 711 651 581 570
countries the group trades in and uncertainty over the feasibility of certain business units.
Repayment of interest portion of the lease (711) (691) (581) (570)
Significant events could include a change in the group’s assessment of whether it is reasonably certain to exercise a renewal
Repayment of capital portion of the lease (2 069) (1 578) (1 410) (1 264)
which includes if a store is expected to be relocated or closed. Subsequent to the commencement date of lease agreements,
8 638 9 121 7 148 7 678 lease terms are reassessed when there is a significant event or change in circumstances that is within the group’s control and
Less: short-term portion repayable within one year (2 126) (2 093) (1 524) (1 530) affects its ability to exercise or not to exercise the option to renew.

Long-term portion of lease liabilities 6 512 7 028 5 624 6 148 Incremental borrowing rates applied in the measurement of certain lease liabilities are specific to the term and commencement
date of the applicable lease agreement. Incremental borrowing rates are based on the prime lending rate adjusted for factors in
Contractual undiscounted cashflows the lease.
Within one year 3 099 2 463 2 340 1 806
After one year but less than five years 7 369 5 423 6 329 4 574
More than five years 1 853 3 617 1 742 3 343
12 321 11 503 10 411 9 723
Less: Unearned interest (3 683) (2 382) (3 263) (2 045)
Present value of minimum lease payments 8 638 9 121 7 148 7 678

Group Company
R’m 2024 2023 2024 2023
Expense related to leases of low value items 25 24 25 22
Variable lease payments 9 7 8 6

Accounting policy
Lease liabilities mostly relate to store leases and represent the financial obligation of the company and group to make
lease payments to landlords to use the underlying leased premises during the lease term. The majority of leases are for
3-5 years, and some include an option to renew on expiry. The lease term includes a renewal period based on historical
store performance. Where there are two option periods, only the first option has been taken into account in the lease term
at no escalation.

Variable lease payments that do not depend on an index or rate are recognised as an expense in the period on which
the event or condition that triggers the payment occurs. Some leases include rental based on turnover, and these are
expensed as part of variable lease payments when incurred.

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20. Interest-bearing loans Mortgage loans was:

Group Company
Group Company
R’m 2024 2023 2024 2023
R’m 2024 2023 2024 2023
Reconciliation of the closing balance
Instalment sale agreements 34 34 - -
Opening balance 55 - - -
Mortgage loan 38 55 - -
Current year movements (17) 55
72 89 - - - Acquisition of Studio 88 - 61 - -
- Finance charges 3 2 - -
Current portion of interest-bearing loans 34 33 - -
- Repayments of capital portion of mortgage loan (17) (6) - -
Long-term portion of interest-bearing loans 38 56 - - - Repayment of interest portion of mortgage loan (3) (2) - -
Closing balance 38 55 - -

Instalment sale agreements relate to motor vehicle instalment sale agreements and a mortgage loan. Less: current portion repayable in one year 18 16 - -
Long-term portion 20 39 - -
Instalment sale agreements were:

Group Company Group Company

R’m 2024 2023 2024 2023 R’m 2024 2023 2024 2023
Mortgage loan
Instalment sale agreements
Within one year 18 16 - -
Opening balance 34 1 - 1
After one year but less than five years 20 39 - -
Current year movements - 33 - (1) 38 55 - -
- Acquisition of Studio 88 - 30 - -
Interest is charged at a fixed rate of 7.38% on the mortgage loan.
- Additions 20 11 - -

- Finance charges 4 1 - - Liabilities are presented in the statement of financial position as follows:

- Repayments of capital portion of instalment sale agreements (20) (8) - (1) Group Company
- Repayment of interest portion of instalment sale agreements (4) (1) - - R’m 2024 2023 2024 2023

Closing balance 34 34 - -
Non-current 38 56 - -
Less: current portion repayable in one year 16 17 - -
Current 34 33 - -
Long-term portion 18 17 - - 72 89 - -

Interest is charged at prime less 1% on the instalment sale agreements. Refer to 14 for the inclusion of the motor vehicles under Accounting policy
property, plant and equipment. The maturity analysis of contractual discounted cash flows at 30 March 2024 is as follows: The above is classified as a financial liability and measured at amortised cost and is recorded at fair value at inception using
the effective interest rate implicit in the cash flows of the payable.

Group Company

R’m 2024 2023 2024 2023

Instalment sale agreements

Within one year 16 17 - -

After one year but less than five years 18 17 - -

34 34 - -

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21. Retirement benefits

21.1 Pension schemes Movements in the present value of the defined benefit obligation in the current period were as follows:
21.1.1 Membership
The funds are registered in terms of the Pension Funds Act of 1956 and provide for pensions and related benefits for all permanent Group and Company
employees. Membership is compulsory after the first year of service. Membership details are disclosed in the remuneration
R’m 2024 2023
report on pages 172 to 204.
Defined benefit obligation at beginning of the year 50 52
21.1.2 Contributions Current service cost 2 2
Group defined benefit fund
Pensions are based on length of service and highest average annual salary earned over two years during the last 10 years of Contributions 1 1
employment. The members are required to contribute to the funds mainly at the rate of 7.0% of their pensionable remuneration Interest cost 6 6
while the employer is required to contribute mainly at the rate of 7.0%.
Actuarial gain (3) (5)
Group defined contribution fund Benefits paid (6) (5)
The members are required to contribute to the funds mainly at the rate of 7.5% of pensionable remuneration and the employer
Risk premiums - (1)
contributions decreased to 7.5% in the current financial year as a result of the migration to a cost to company remuneration
model. Defined benefit obligation at end of the year 50 50

21.1.3 Valuations
Defined benefit pension fund
Movements in the present value of the plan assets in the current period were as follows:
Group and Company
Fair value of plan assets at beginning of the year 134 129
R’m 2024 2023
Expected return on assets 17 15
The funded status of the defined benefit retirement fund, actuarially calculated annually at
reporting date in terms of IAS 19, is as follows: Contributions 1 1

Present value of the defined benefit obligation-wholly unfunded (50) (50) Risk premiums - -

Fair value of plan assets 139 135 Benefits paid (6) (5)

Net benefit plan asset 89 85 Actuarial loss (7) (5)

Fair value of plan assets at end of the year 139 135

The estimated asset composition of the fair value of total plan assets is as follows:
The amounts recognised in the income statement are detailed in note 4. %

The following main assumptions were used in performing the calculation: Cash 3.5 2.3
• Discount rate - 14.3% per annum (2023: 13.0% per annum) South African equities 36.9 41.3
• Inflation - 8.3% per annum (2023: 7.4% per annum)
• Future salary increases - 9.3% per annum (2023: 8.4% per annum) South African bonds 16.5 18.6
South African property and other 7.2 7.7
International assets 35.9 30.1
100.0 100.0

Sensitivity analysis on the assumed discount rate and inflation rate as follows:

Group and Company

2024
+1% -1%
The effect of an increase or decrease of 1% in the assumed discount rate as follows: (14.6%) 18.3%

+1% -1%
The effect of an increase or decrease of 1% in the assumed inflation rate as follows: 17.2% (14.0%)

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Due to the valuation above being based on a number of assumptions, the defined benefit obligation could vary from the amounts 21.3 Defined benefit fund actuarial gains and losses
disclosed, depending on the extent to which actual experience differs from the assumptions adopted.
Reconciliation of defined benefit fund actuarial gains and losses reserve
The estimated defined benefit cost for 2025 financial year is as follows; a current service cost of R160 million (2024: R180 million),
an expected return on plan assets of R19.8 million (2024: R17.4 million) and an interest cost of R 7.3 million (2024: R7.4 million).
Group and Company
The estimated contributions are R159 million.
R’m 2024 2023
Defined contribution funds Beginning of the year 3 1
The defined contribution funds are valuation exempt. The actuarial function remains present through an Enhanced Financial
Assessment (EFA) process, which is a quarterly actuarial assessment that looks at the financial soundness of the Fund; and sets Current year actuarial (loss)/gain (6) 2
out the allocations of contributions to the Fund. The report includes a comparison of the total assets to the total liabilities of the Deferred taxation thereon 1 -*
Fund in order to determine the funding level. The most recent EFA reports as at 31 March 2024 concluded that the funding level
of the Funds was within the tolerance levels set by the administrators. End of the year (2) 3
*Less than R1 million
21.2 Post retirement medical benefits
The obligation of the group to pay medical aid contributions for members who have retired is no longer part of the conditions Short-term employee benefits
of employment for new associates. A limited number of pensioners and current associates who remain members of the defined Short-term employee benefits are recognised in the period of service. Short-term employee benefits paid in advance are treated
benefit pension fund are entitled to this benefit. The entitlement to the benefit for current associates is dependent upon the as prepayments and are expensed over the period of the benefit.
associate remaining in service until retirement age. Actuarial valuations of the group’s liability, in terms of IAS 19, are undertaken
every three years with the last valuation performed on 5 April 2023. The main assumptions used in performing these valuations Accounting policy
are reviewed annually. Any detection of a material variation in a main assumption would give rise to a new valuation. The Defined benefit retirement fund and post-retirement medical aid fund
obligation for post retirement medical aid benefits is unfunded. The following main assumptions were used in performing the The costs of providing benefits under the defined retirement benefit fund and the obligation for post-retirement medical
valuation at 1 April 2023: aid benefits (which is limited to members of the defined benefit retirement fund) is determined using the projected unit
credit actuarial valuation method. Actuarial gains or losses, which can arise from differences between expected and actual
Key assumptions used in determination of the liability are: outcomes, or changes in actuarial assumptions, are recognised immediately in other comprehensive income. Any increase
Health care cost inflation - 9.5% per annum (2023: 8.7% per annum) in the present value of plan liabilities expected to arise from employee service during the period is charged to operating
Discount rate - 13.5% per annum (2023: 12.8% per annum) profit.
Average retirement age - 62 years (2023: 62 years)
Continuation at retirement - 100% (2023: 100%) The defined benefit fund asset reflected in the statement of financial position represents the present value of the defined
benefit asset as adjusted for unrecognised past service costs and as reduced by the fair value of scheme assets. The asset
resulting from this calculation is limited to past service costs, plus the present value of available refunds and reductions in
Activity during the year was as follows:
future contributions to the plan. Past service costs are recognised immediately to the extent that benefits have already vested,
Group and Company and are otherwise amortised on a straight-line basis over the average period until the benefits become vested.

R’m 2024 2023 Defined contribution retirement fund

Benefit obligation at beginning of the year 20 22 Payments to defined contribution retirement funds are expensed as they accrue in terms of services provided by employees.

Net increase/(decrease) in provision during the year 2 (2)

Significant accounting estimates
Benefit obligation at end of the year 22 20 Employee benefits actuarially determined
The costs of the defined benefit pension fund plan and the post-retirement medical benefit fund are determined actuarially. The
The effect of an increase or decrease of 1% in the assumed healthcare cost inflation is as follows: actuarial valuations involve making assumptions regarding various factors (as detailed in this note). Due to the long-term nature
of these liabilities such estimates are subject to uncertainty.
Group and Company
R’m 2024
+1% -1%
Aggregate of the current service cost and interest cost +12.0 (10.1) 22. Capital commitments
Accrued liability at year end +11.2 (9.5)
Group Company
The effect of an increase or decrease of 1% in the assumed discount rate is as follows:
R’m 2024 2023 2024 2023
Capital expenditure authorised by the directors of the company
Accrued liability at year end (9.3%) +11%
or its consolidated entities but not provided for in the financial
statements amounts to: 1 029 1 215 795 1 227
The effect of an increase or decrease of 1 year in the assumed expected retirement age is
1 year older 1 year younger of which contracts have been placed for 258 193 254 190
as follows:
Accrued liability at year end (3.0%) +3.1%
The above capital commitments is expected to be financed from future cash flows.

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23. Contingencies and commitments 24.2 Reconciliation of taxation rate

During the 2021 financial year, the company received assessments from SARS relating to the disallowance of certain deductions
claimed in the 2015 to 2017 years of assessment. In June 2022, SARS raised assessments disallowing the same deductions, as Group Company
well as including receipts of a capital nature in taxable income, for the 2018, 2019 and 2020 years of assessment. The company, % 2024 2023 2024 2023
supported by senior counsel opinion, is in the process of legally disputing all of these assessments. No adjustments have been
Standard rate 27.0 27.0 27.0 27.0
made to the financial statements as the directors are of the opinion that the likelihood of the liability is insignificant.
Adjusted for:
Expenses not allowed* 0.4 0.3 0.1 0.3
Exempt income^ (0.7) (1.0) (1.1) (2.0)
Prior year under provision 0.1 0.1 - (0.2)
Taxation Unrecognised deferred tax assets - 0.1 - -
Other (0.2) 0.2 (0.1) 0.2
Effective tax rate 26.6 26.7 25.9 25.3
24. Taxation
24.1 South African and foreign taxation *Capital expenses and losses not allowed
24.1.1 South African taxation ^Exempt income relates to employee tax incentives and non taxable income

Group Company The taxation expense represents the sum of current taxation and deferred taxation. Taxation rates that have been enacted or
substantively enacted by the reporting date are used to determine the taxation balances.
R’m 2024 2023 2024 2023
This year 1 152 1 115 986 980 Current taxation (payable)/receivable at 30 March 2024 were:
Current
Group Company
Normal taxation 1 169 1 048 989 900
R’m 2024 2023 2024 2023
Deferred
Current taxation receivable 7 12 - -
Current year temporary differences (17) 67 (3) 80
Current taxation payable (138) (309) (128) (284)
Effect of tax rate change - - - -
(131) (297) (128) (284)

Prior years 2 7 - (7)

Accounting policy
Current 30 (4) 17 (5) Current income taxation assets and liabilities for the period are measured at the amount expected to be recovered from or
paid to the taxation authorities. The taxation currently payable is based on the taxable profit for the year, which differs from
Deferred (28) 11 (17) (2)
the profit for the year in the income statement as it excludes both items of income or expense that are taxable or deductible in
other years and those items that are never taxable or deductible. Current income taxation relating to items recognised directly
24.1.2 Foreign taxation
in equity is also recognised in other comprehensive income or equity and not in profit or loss.
This year 80 56 25 26
Significant accounting estimates
Current 70 56 25 26 Income taxes
Deferred 10 - - - The group is subject to income tax in more than one jurisdiction. Significant judgement is required in determining the provision
for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the
Prior years 4 (1) - - ordinary course of business. The group recognises liabilities for anticipated tax issues based on estimates of whether additional
taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such
Current 7 2 - -
differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is
Deferred (3) (3) - - made.

Total taxation 1 238 1 177 1 011 999

In addition to the above, current normal taxation and deferred taxation amounting to R33.4 million (2023: R15.7 million
charged) and R25.2 million (2023: R4.7 million credited) respectively have been charged and debited to equity relating to the
staff share schemes (refer note 28). Deferred income taxation of R8.7 million (2023: R17 million debited) has been credited to
the statement of comprehensive income.

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25. Deferred taxation

Accounting policy
Group Company
Deferred taxation is provided for all temporary differences (other than temporary differences created on initial recognition of
R’m 2024 2023 2024 2023 an asset or liability which are not part of a business combination and at the time of the transaction no taxation or accounting
Attributable to: effect has been recognised and goodwill for which amortisation is not deductible for accounting purposes) arising between the
tax bases of assets and liabilities and their carrying amounts on the statement of financial position. Deferred taxation relating
Post retirement medical aid 2 2 2 1 to items recognised outside profit and loss is recognised outside profit and loss. Deferred taxation items are recognised in
Fair value adjustments on financial instruments - (7) - (7) correlation to the underlying transaction either in other comprehensive income or directly in equity.

Prepayments (18) (13) (18) (12) Deferred taxation assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
Provisions 280 266 159 135 is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
Property, plant and equipment (764) (743) (360) (306)

Other temporary differences (3) - (40) (37) Deferred taxation assets are only recognised to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and that future taxable profit will be available to allow all or part of the deferred taxation asset to be
Share based payments 384 351 383 351
utilised. Deferred taxation is provided on temporary differences arising on investments in consolidated entities and associates,
Defined benefit fund asset (12) (14) (12) (14) except for deferred tax liabilities where the timing of the reversal of the temporary difference is controlled by the group and it
Grants to staff share trusts (292) (267) (292) (267) is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred taxation
assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits
Assessed loss 24 9 - - will be available to allow all or part of the asset to be recovered.
Lease liability 351 345 320 294
Deferred taxation assets and deferred taxation liabilities are offset if a legally enforceable right exists to set off current tax
(48) (71) 142 138 assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
Reconciliation of deferred tax (liability)/ asset authority. Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at
Balance at beginning of year (71) 269 138 238 that date, are recognised subsequently if new information about facts and circumstances change. The adjustment is either
treated as a reduction to goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period
Prior year adjustment 31 (5) 17 2
or recognised in profit or loss.
Acquired from (2023: Studio 88) (refer to note 32) - (244) - -

Movements during the year (8) (91) (13) (102)

Prepayments (5) 52 (5) 50
Provisions 24 (134) 27 (133)
Property, plant and equipment (22) (64) (54) (69)
Other temporary differences (34) (23) (23) (25)
Share based payments 33 40 33 39
Defined benefit fund actuarial gains 1 -* 1 -*
Grants to staff share trusts (25) 5 (25) 5
Assessed losses 5 (2) - -
Lease liability 7 53 25 49
Fair value adjustments on financial instruments 7 (17) 7 (17)
Post retirement medical aid 1 (1) 1 (1)

End of the year (48) (71) 142 138

*Less than R1 million

Deferred taxation liabilities (343) (362) - -

Deferred taxation assets 295 291 142 138

(48) (71) 142 138

The prior year amounts have been represented to reflect assets as positive balances and liabilities as negative balances.

At the reporting date, the group has unused tax losses of R185m (2023: R181m) available for offset against future profits. A
deferred tax asset has been recognised in respect of R24m (2023: R9m) of such losses.

83 ANNUAL INTEGRATED REPORT - 2024 Mr Price Group Limited 84

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Share Capital

26. Share capital

26.1 Authorised

Group Company
R’000 2024 2023 2024 2023
323 300 000 ordinary shares of 0.025 cent each 81 81 81 81
19 700 000 B ordinary shares of 0.300 cent each 59 59 59 59
Total authorised share capital 140 140 140 140

26.2 Issued

Group Company
R’000 2024 2023 2024 2023
Ordinary
Ordinary 256 791 496 (2023: 256 791 496) ordinary shares of 64 64 64 64
0.025 cent each
B ordinary
Ordinary 6 792 786 (2023: 6 792 786) B ordinary shares of 20 20 20 20
0.300 cent each

Total issued share capital 84 84 84 84

26.3 B ordinary shares

The B ordinary shares are unlisted and are convertible into ordinary shares on a one-for-one basis at the instance of the
B ordinary shareholders. The voting rights attached to the ordinary and B ordinary shares are in the same ratio as the par
value of the respective shares. In the event of a poll, ordinary shareholders are entitled to one vote per share and B ordinary
shareholders to 12 votes per share. Dividends are declared and paid at the same rate as the ordinary shares.

26.4 Share trusts and share purchase schemes

The company operates five share trusts and two forfeitable share plans for the benefit of associates, including executive
directors, employed by the company and its consolidated entities. In terms of the deeds of trust, ordinary shares in Mr Price
Group Limited may be acquired by the trust or awarded under the schemes for the benefit of associates in the group, including
directors. These share schemes are fully detailed in the remuneration report on pages 172 to 204.

85 Mr Price Group Limited 86

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26.4.1 Share Trusts And Share Purchase Schemes

Five share trusts were established in November 2006, to replace The Mr Price Group Share Option Scheme and two Forfeitable
Share Plans (FSP) were introduced during 2014. Details of these plans are as follows:

Mr Price Mr Price Mr Price Senior Mr Price Mr Price Mr Price Group Mr Price Conditional Share Executive Group Total
Executive Executive Management General Staff Partners Forfeitable Executive Rights appreciation Conditional
Director Share Share Trust Share Trust Share Trust Share Trust Share Plan Forfeitable rights Rights
Trust Share Plan
Award type Options Options Options Options Shares Shares Shares Shares Shares Shares
Options/shares/rights at 2 April 2022 1 155 647 1 143 024 1 833 156 2 975 906 4 014 512 238 424 355 554 1 102 976 1 027 282 1 027 282 14 873 763
New options/shares granted - - - - 758 993 14 537 - 785 031 718 324 718 324 2 995 209
Surrendered by participants - (15 608) (542 449) (792 333) (594 408) - (28 851) (131 013) (51 411) (51 411) (2 207 484)
Options/shares exercised - (12 324) - (126 347) (19 749) - (57 873) (969) - - (217 262)
Options/shares at 1 April 2023 1 155 647 1 115 092 1 290 707 2 057 226 4 159 348 252 961 268 830 1 756 025 1 694 195 1 694 195 15 444 226
New options/shares granted* - - - - 978 450 - - 1 205 966 861 807 861 807 3 908 030
Surrendered by participants (541 223) (333 789) (468 170) (789 058) (526 422) - (81 144) (169 279) - - (2 909 085)
Options/shares exercised - - - - (20 324) (42 121) (71 434) (439 793) (197 420) (197 420) (968 512)
Options/shares at 30 March 2024 614 424 781 303 822 537 1 268 168 4 591 052 210 840 116 252 2 352 919 2 358 582 2 358 582 15 474 659
*New share/rights were granted during the current year at a strike price of (per share): - - - - - - - - R138 - R196 - -

The strike price was determined by the lower of the 30 day volume-weighted average price and the closing share price on the business day prior to the award.

The earliest opportunity at which share options are exercisable falls within financial years ending:
Number of options/shares by financial year:
2025 614 424 781 303 822 537 1 268 168 N/A - 116 252 491 853 911 786 911 786 5 918 109
2026 - - - - N/A - - 686 114 607 161 607 161 1 900 436
2027 - - - - N/A 196 303 - 1 174 952 839 635 839 635 3 050 525
2028 - - - - N/A 14 537 - - - - 14 537
2029 - - - - N/A - - - - - -
614 424 781 303 822 537 1 268 168 - 210 840 116 252 2 352 919 2 358 582 2 358 582 10 883 607

Weighted average price by financial year:

2025 189.12 183.73 164.83 156.00 N/A N/A N/A N/A 255.38 N/A
2026 - - - - N/A N/A N/A N/A 172.06 N/A
2027 - - - - N/A N/A N/A N/A 138.38 N/A
2028 - - - - N/A N/A N/A N/A N/A N/A
2029 - - - - N/A N/A N/A N/A N/A N/A
Death or
Number of years over which shares are expected to vest 5 years 5 years 5 years 5 years 5 years 5 years 3 years 3 years 3 years
Retirement

Number of options/shares by financial year is N/A for Mr Price Partners Share Trust as vesting is on death or retirement.
N/A for weighted average price by financial year due to nil award price.
Shares are expected to vest unconditionally in the Mr Price Partners Share Trust in 38 years.
26.5 Share-based payments

Total Executive Directors’ Share Options and Shares Total Executive Directors’ Forfeitable Share Plans
Options / shares Shares awarded Options/ shares
Executive held at beginning and accepted Options lapsed held at end of Shares Shares vested Shares lapsed Shares held at end Fair value of
director of year during year during the year year granted during year during year of the year shares (Rm)
MM Blair 1 292 825 238 654 (295 630) 1 235 849 243 938 (22 992) (22 992) 197 954 82
P Nundkumar 101 015 125 276 (6 064) 220 227 2 132 - - 2 132 13
MJ Stirton^ 457 830 - (343 904) 113 926 61 877 (47 205) (6 042) 8 630 9
Total 1 851 670 363 930 (645 598) 1 570 002 307 947 (70 197) (29 034) 208 716 104

^Share incentives for executive director position

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26.5 Share-based payments (continued)

Group Company 27. Capital reserves

R’m 2024 2023 2024 2023
27.1 Share premium account
Share-based payments relating to equity-settled share-based payment
transactions in terms of the long term incentive 121 182 121 182 Group Company
R’m 2024 2023 2024 2023
Share-based payments are measured at fair value (excluding the impact of any non-market vesting conditions) at the date of
the grant, which is expensed over the period of vesting. All schemes are equity settled. The fair value of each option grant is Share premium account 2 2 -* -*
estimated at the date of the grant using an actuarial binomial option pricing model. * less than R1 million

The assumptions supporting inputs into the model for options granted during the year are as follows:
27.2 Participants in staff share investment trust
R’m
Conditional Rights Share Appreciation Rights Executive Conditional Rights
Participants in staff share investment trust (note 26) 39 42
Performance
Stretch conditions Beginning of the year 42 36

Weighted average strike price - 138.38 - - Net movement for the year (3) 6

Expected volatility (%) - 36.19 - -

Expected option life 3 years 3 years 3 years 3 years 27.3 Share-based payments reserve

Risk free interest rate (%) 7.79-8.53 8.20 7.79 7.00 Share-based payments reserve 526 501 526 501
Expected dividend yield (%) 5.25-5.74 5.48 5.25 5.00 Beginning of the year 501 409 501 409
Recognition of share-based payments for the year 25 92 25 92
The expected volatility was determined, based on the historical volatility of the company’s share price over the expected lifetime
of each grant. The expected life of the options has been determined taking into account the restrictions on non-transferability and Share-based payments for options/shares granted in current year 121 188 121 188
exercise and management’s best estimate of probable exercise behaviour. Share-based payments reserve transferred to retained income for
options that have vested from inception to date (96) (90) (96) (90)
The risk-free rate used is the yield on zero-coupon South African government bonds which have a term consistent with the
expected option life. Share-based equity reserve hedge cost - (6) - (6)

In the calculation of the fair value of the options, allowance is not made for non-market conditions (such as forfeitures and leavers) Total capital reserves 567 545 526 501
during the vesting period. Adjustment for these conditions is made in the annual expense charge, with an allowance for forfeitures
being made in the vesting period at rates varying between 0% and 15% compounded per annum.
The above equity account represents cumulative share based payment charges that have been credited to equity net of transfers
The assumptions supporting inputs into the model for the Forfeitable Share Plans with an expected option life of 5 years are as follows: to retained income for options that have vested.
Accounting policy
Probability % shares retained Share-based payments
Participants still employed after 1 year 100% 10% The group operates share incentive schemes for the granting of non-transferable options or shares to associates (employees).
Equity-settled share-based payments in terms of the schemes are measured at fair value (excluding the impact of any
Participants still employed after 2 years 95% 20% non-market vesting conditions) at the date of the grant, which is expensed over the period of vesting of the grant, with a
Participants still employed after 3 years 90% 30% corresponding adjustment to equity. Fair value is actuarially determined using a binomial valuation model. At each reporting
date the estimate of the number of options that are expected to vest is revised, and the impact of this revision is recognised
Participants still employed after 4 years 85% 40% on a cumulative catch-up basis in the income statement, with a corresponding adjustment to equity. Assumptions used in
the respective valuations are detailed in note 26.5. Upon vesting, the amount remaining in the share-based payment reserve
Participants still employed after 5 years 80% 100%
relating to any such vested tranche is transferred within equity to retained earnings.
26.6 The Mr Price Group Employees Share Investment Trust
Derivatives over own equity
The company administers a staff share purchase scheme which facilitates the purchase of shares in the company for the benefit
The group has derivative contracts over its own equity which are settled by delivering or receiving a fixed number of its own equity
of employees, including executive directors, employed by the company and its consolidated entities. The acquisition of shares
instruments and receiving or delivering a fixed amount of cash. Changes in fair value of the equity instrument are not recognised in
is funded by contributions from participants (employees) while the company is authorised to provide additional funding of up to
financial instruments.
15% of the contributions made, which is expensed as an associate cost in the year incurred. In terms of IFRS 10, the company
has consolidated the trust as it was created to incentivise and reward the employees of the group. In the group financial
Performance incentives
statements the Mr Price Group Limited shares are reflected as treasury shares as they have not yet been transferred to the
The group recognises a liability and expense for performance incentives which include a component based on formulae which
employees, while the amounts received for the shares to be transferred to employees are treated as equity transactions.
take into consideration the profit for the year and other operational targets.
26.7 Unissued share capital
The unissued share capital required for the purposes of carrying out the terms of the various share trusts and schemes is under the Significant accounting estimates
control of the directors until the conclusion of the forthcoming annual general meeting. Share-based payments actuarially determined
The costs of the share-based payments are determined actuarially. The actuarial valuations involve making assumptions
regarding various factors (as detailed in note 26). Due to the long-term nature of these liabilities such estimates are subject
to uncertainty.

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28. Treasury share transactions 29. Foreign currency translation reserve

Group Company Group
R’m 2024 2023 2024 2023 R’m 2024 2023
6 756 336 (2023: 6 390 470) ordinary shares in Mr Price Group Beginning of the year (228) (232)
(1 143) (1 134)
Limited held by staff share trusts
Currency translation adjustments for the year (13) 4
- Balance at beginning of the year (1 134) (938)
End of the year (241) (228)
- Share-based equity reserve hedge cost (106) (193)
- Treasury shares acquired - (36)
The foreign currency translation reserve comprises the cumulative translation adjustments arising on the consolidation of the
- Treasury shares sold 94 39 foreign subsidiaries in Botswana, Nigeria, Ghana, Zambia, Kenya and Mozambique.
- Mr Price Group Employees Share Investment Trust 3 (6)

Deficit on treasury share transactions (1 734) (1 640) (358) (286) Accounting policy
Functional and presentation currency
- Balance at beginning of the year (1 640) (1 622) (286) (274)
Items included in the financial statements of the group’s foreign consolidated entities are measured using the currency of
- Current year movement arising from the take-up of vested options (94) (18) (72) (12) the primary economic environment in which the entity operates (‘functional currency’). The consolidated annual financial
statements are presented in Rands, which is the group’s functional and presentation currency.
Taxation relating to grants to share trusts 392 384 392 384
Transactions and balances
- Balance at beginning of the year 384 363 384 363
Transactions in foreign currencies are initially recorded by the group’s entities at their respective functional currency spot rates
- Current year movement 8 21 8 21 at the date the transaction first qualifies for recognition.

Grants by company to staff share trusts (3 035) (3 035) Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at
- Balance at beginning of the year (3 035) (2 842) the reporting date. Differences arising on settlement or translation of monetary items are recognised in profit or loss.

- Grants made during the year - (193) Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates
Share hedges and other share movements (37) - at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined.
(2 485) (2 390) (3 038) (2 937)
The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of
the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is
Shares in Mr Price Group Limited held by the staff share trusts are classified as treasury shares and are recognised at cost and
recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the company’s
own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognised as equity.
Group companies
Voting rights related to these shares are restricted for the company only on resolutions applicable to the share trusts. Share
The results and position of consolidated entities that have a functional currency that differs from the presentation currency
options exercised during the reporting period are settled with treasury shares.
are translated into the presentation currency as follows:

No treasury shares were acquired, 134 885 shares were sold by the staff share trusts at an average of R166.69 during the 2024
• Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that
financial year.
statement of financial position;
• Income statement items are translated at the average rate for the period (unless this average is not a reasonable
In the prior year as part of the acquisition of Studio 88, the company issued and alloted 834 557 shares on October 4 2022. The
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses
company entered into a share buy-back programme and repurchased and subsequently cancelled 884 715 shares on October 7
are translated at the rate on the dates of the transactions); and
2022. The company acquired 884 715 shares at R165m for an average price of R186.5 per share.
• All resulting exchange differences are recognised as a separate component of other comprehensive income. Financial
assets are reviewed annually for any evidence of impairment and any impairment loss is recognised immediately in the
income statement.

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Group Composition

30. Consolidated entities 31. Operating subsidiaries

Company Issued capital Carrying value of shares Net indebtedness
R’m 2024 2023 2024 2023 2024 2023 2024 2023
Carrying value of shares 4 017 4 029 Notes Shares Shares R’m R’m R’m R’m
Ordinary shares at cost 4 017 4 029 Mr Price Botswana (Pty) Limited 1 100 100 - - 96 58
Mr Price (Lesotho) (Pty) Limited 2 1 000 1 000 - - 27 11
Carrying value of long-term loans 34 78
Mr Price Group (Namibia) (Pty) Limited 3 100 100 - - 116 39
Long-term loans 34 78
Mr Price Chain Stores International Limited (Nigeria) 4 500 000 500 000 2 2 - -
Provision for impairment - -
Mr Price Chain Stores International Limited (Ghana) 5 480 000 480 000 2 2 6 5
The loans are granted to consolidated entities to fund working capital requirements and
Mr Price Zambia Limited 6 5 000 5 000 - - 49 80
stock purchases. The loans are unsecured, bear interest at rates of up to 15.0% per
annum and have no fixed dates of repayment Millews Fashions (Johannesburg) (Pty) Limited 7 28 000 28 000 - - 4 3
4 051 4 107 Associated Credit Specialists (Pty) Limited 8 100 100 - - 3 1

Net current amounts owing by consolidated entities 519 328 Mr Price Mobile (Pty) Limited 9 100 100 - - 21 57
Current amounts owing by consolidated entities 1 059 859 MRP Retail Australia (Pty) Limited 10 100 100 - - - -
Impairment of intercompany loans (494) (485) Mr Price Kenya Limited 11 100 000 100 000 - - 103 64
Current amounts owing to consolidated entities (46) (46) Mr Price Retail Poland Sp. z o.o 12 100 100 - - - -
Enterprise Stores (Pty) Limited (Swaziland) 13 6 364 6 364 13 13 6 6
Current accounts are interest free and are settled within 12 months, with the exception of Otto Bros Lesotho Holdings (Pty) Limited 14 1000 1 000 -* -* 7 10
loans to Mr Price Kenya Limited (9.85%) and Yuppiechef (11.25%).
K2018509367 (Pty) Limited 15 912 632 912 632 402 402 - -
4 570 4 435
Yuppiechef Holdings (Pty) Limited 185 203 185 203 - - - -
An analysis of the financial interest in consolidated entities is disclosed in note 33. Edison Stone (Pty) Limited 100 100 - - 9 10
Yuppiechef Online (Pty) Limited 120 120 - - 90 29
Accounting policy
Consolidated entity balances are initially recognised at the consideration received, and are subsequently measured at Yuppiechef Digital (Pty) Limited 100 100 - - - -
amortised cost. Current amounts owing are settled on 90 day terms. Blue Falcon 188 Trading (Pty) Limited (South Africa) 16 98 371 744 98 371 744 3 598 3 598 - -
The Branded Clothing Company (Pty) Limited (Botswana)
Consolidated entities (which include special purpose entities such as staff share trusts) are defined as entities over which the 17 100 100 - - - -
(99%)
group has the power to govern the financial and operating policies of the entity so as to gain benefit from its activities. Control
Studio Eighty Eight (Pty) Limited (Namibia) (100%) 18 100 100 - - - -
is achieved when the group is exposed, or has rights, to variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee. Specifically, the group controls an investee if, and only if, Studio 88 Zambia (Pty) Limited (99.99%) 19 10 000 10 000 - - - -
the group has: Real Wise Trading (Pty) Limited (Factory outlet) (100%) 20 100 100 - - - -
L & G Luxury Life 1988 (Pty) Limited (100%) 21 1 000 1000 - - - -
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee; and Studio 88 Mozambique (Pty) Limited (99%) 22 50 000 50 000 - - - -
• The ability to use its power over the investee to affect its returns. Studio 88 Lesotho (Pty) Limited (100%) 23 - - - - - -
Studio 88 eSwatini (Pty) Limited (100%) 24 - 100 - - - -
When the group has less than a majority of the voting or similar rights of an investee, the group considers all relevant facts
and circumstances in assessing whether it has power over an investee, including: Share Trusts
Mr Price Group Staff Share Trust and Share Purchase Scheme - - - - - -
• The contractual arrangement with the other vote holders of the investee;
Mr Price Group Employees Share Investment Trust - - - - - -
• Rights arising from other contractual arrangements; and
• The group’ voting rights and potential voting rights. Mr Price Executive Director Share Trust - - - - 4 4
Mr Price Senior Management Share Trust - - - - 2 2
The group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
Mr Price General Staff Share Trust - - - - 10 9
one or more of the three elements of control. Consolidation of a subsidiary begins when the group obtains control over the
subsidiary and ceases when the group loses control of the subsidiary. Mr Price Partners Share Trust - - - - -* -*

Assets, liabilities, income and expenses of a subsidiary acquired during the year are included in the consolidated financial
Dormant subsidiaries - - - - - -
statements from the date the group gains control until the date the group ceases to control the subsidiary . Profit or loss and
each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the group and to Hughes Extension 17 Township (Pty) Limited 100 100 - - - -
the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intra-group assets Total 4 017 4 017^ 553 388
and liabilities, equity, income, expenses and cash flows relating to transactions between members of the group are eliminated
* Less than R1 million
in full on consolidation. ^This previously reflected R17m and corrected to align to note 30: Consolidated entities

Notes:
1. Operates as Mr Price, Mr Price Home, Miladys, Sheet 4. The company is dormant 9. Operates as a cellular MVNO (mobile virtual network 11. Operates as Mr Price and Mr Price Home stores in Kenya 17. Operates as Studio 88 stores in Botswana 23. Operates as Studio 88 stores in Lesotho
Street and Sport stores in Botswana 5. Operates as Mr Price stores in Ghana operator) only in South Africa and is a 100% held 12. Operated as Mr Price Home store in Poland. The store 18. Operates as Studio 88 stores in Namibia 24. Operates as Studio 88 stores in Swaziland
2. Operates as Mr Price, Mr Price Home, Miladys and 6. Operates as Mr Price, Mr Price Home and Sheet Street subsidiary of the Company ceased trading in December 2019. The company will 19. Operates as Studio 88 stores in Zambia The Company owns 100% of the equity and preference
Sheet Street stores in Lesotho stores in Zambia 10. Operated as Mr Price and Mr Price Home stores in remain dormant 20. Real Wise Trading (Pty) Limited is a Blue Falcon 188 Trading share capital (where applicable) of all other subsidiaries
3. Operates as Mr Price, Mr Price Home, Miladys, Sheet 7. Develops and leases premises to group operations Australia. Company is in liquidation 13. Operates Power Fashion Stores in Swaziland (Pty) Limited subsidiary that operates in South Africa and cell captives, except for Blue Falcon 188 Trading (Pty)
Street and Mr Price Sport stores in Namibia 8. Recovers overdue debts from credit customers 14. Operates Power Fashion Stores in Lesotho 21. L & G Luxury Life 1988 (Pty) Limited is a Blue Falcon 188 Limited, where the company owns 70% of the equity
15. Operates as Yuppiechef South Africa Trading (Pty) Limited subsidiary that operates in South Africa
16. Operates as Studio 88 stores in South Africa 22. Operates as Studio 88 stores in Mozambique
93 94
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32. Business combinations

2024
There were no acquisitions in the current financial year ended 30 March 2024. Studio 88 was acquired in the prior year.

33. Related parties

33.1 Related party transactions 33.6 Transactions with related parties (continued)
Related party transactions constitute the transfer of resources, services or obligations between the group and a party related to
the group, regardless of whether a price is charged. For the purposes of defining related party transactions with key management, Company
key management has been defined as directors and the group’s executive committee and includes close members of their R’m 2024 2023
families and entities controlled or jointly controlled by these individuals. Sales 967 926
Mr Price Group (Namibia) (Pty) Ltd 456 451
33.2 Directors
Mr Price Botswana (Pty) Ltd 269 270
Refer to note 34 for directors’ emoluments.
Mr Price (Lesotho) (Pty) Ltd 86 80
Mr Price Zambia Limited 64 59
33.3 Compensation of key management personnel
Mr Price Chain Stores International Limited (Ghana) 30 37
Group Company Mr Price Kenya Limited 62 29

R’m 2024 2023 2024 2023

Administration fees (paid to)/received from related parties: 180 125
Short-term employee benefits 169 185 169 185
Mr Price Group (Namibia) (Pty) Ltd 39 25
Post employment pension benefits 10 11 10 11 Mr Price Botswana (Pty) Ltd 78 55
Share-based payments 78 38 78 38 Mr Price (Lesotho) (Pty) Ltd 13 8
257 234 257 234 Mr Price Zambia Limited 41 33
Mr Price Kenya Limited 22 4
The above compensation includes amounts paid to executive senior management personnel and excludes amounts paid to Mr Price Chain Stores International Limited (Ghana) (13) -
directors as disclosed in the Remuneration Report.
Dividends received by: 34 160
33.4 Transactions with related parties Associated Credit Specialists (Pty) Ltd 20 20
The following transactions were entered into with individuals, who meet the definition of entities over which such individuals are Long term incentive plan 2 -
deemed to have a controlling influence:
Millews Fashions (Johannesburg) (Pty) Ltd - 30
Related party Vukile Property Fund Ltd, a company of which NG Payne, the chairman, is a director. Store rental of R25.0m (2023:
R76.4m) was paid. Mr Price Botswana (Pty) Ltd - 71
Mr Price Executive Director Share Trust 3 3
Related party Hyprop Investments Ltd, a company of which R Inskip, a director, is a director and chair of the Remunerations Mr Price Executive Share Trust 3 3
Committee and member of the Nominations Committee. Store rental of R35.2m was paid. Mr Price General Staff Share Trust 2 3
Mr Price Group Namibia (Proprietary) Limited - 24
Related party Aria Capital (Pty) Ltd, a company of which MM Blair, the CEO, is a shareholder. Rental paid of R2.3m (2023: R nil).
Mr Price Partners Share Trust 2 4
Related Party - BVPG, firm of attorneys of which Mr K Getz, a non-executive director who retired by rotation effective 30 August Mr Price Senior Management Share Trust 2 2
2023, is a partner. Legal fees of R0.2m (2023: R0.04m)
Refer to note 30 for the amounts owing to and by consolidated entities.
33.5 Participants in staff share trusts Purchases from related parties
Refer to notes 26 and 27 in respect of transactions with participants in the staff share trusts.
Triple 8 CC - Inventory 95 35

33.6 Transactions with related parties Services from related parties

Refer to notes 21 in respect of transactions with post retirement benefit funds. Cargo compass (South Africa) (Pty) Limited 131 157
During the year the group enters into various transactions, in the ordinary course of business, with related parties. Parties are
considered to be related if one party has the ability to control or exercise significant influence over the other party in making Operating expenses 4 11
financial and operating decisions. Frisbee Trade and Invest 116 CC - Travel 4 2
Triple 8 CC - Sourcing fee - 9

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34. Directors’ emoluments

The emoluments received by the directors from the company were:

Retirement
Basic fund Other Short-term Long-term Total Total
R’m salary contribution benefits TGP incentives incentives Otherr 2024 2023
MM Blair 8 1 2 11 9 26 - 46 11
P Nundkumar 4 -* -* 4 5 1 - 10 -
MJ Stirton 2 -* -* 2 - 6 8 16 7
Total 14 1 2 17 14 33 8 72 18

*Less than R1 million

^Steve Ellis, an alternate executive director to the CEO, retired from his executive role in the group effective 31 December 2021

The emoluments received by the non-executive directors from the company were:

Company
Rand 2024 2023
SB Cohen 958 759 908 780
NG Payne 1 969 813 1 867 120
M Bowman 1 086 539 1 029 900
D Naidoo 1 083 827 1 027 330
JA Canny 666 643 567 740
K Getz 321 728 731 890
LA Swartz 737 781 653 710
M Chauke 317 268 601 460
SA Ellis 189 154 430 300
R Nkabinde 211 512 -
R Inskip 380 373 -
N Abrams 313 149 -
H Ramsumer 584 652 -
Total 8 821 197 7 818 230

*Less than R1 million

35. Subsequent Events

Other than the dividend declaration, no material events affecting the annual financial statements have occurred between the
financial year end and the date of this report.

36. Going Concern

The directors and management have reviewed the group’s budget and cash flow forecasts, and related solvency and liquidity
ratios. They have also considered the current trading environment. On the basis of this review, and in the light of the current
financial position and existing borrowing facilities, the directors are satisfied that the group is a going concern in FY2025 and
beyond and have continued to adopt the going concern basis in preparing these annual financial statements.

97 ANNUAL INTEGRATED REPORT - 2024 98

 Administration and
Contents

Contact Details
Address Phone Fax Websites

Corporate Upper level, 031 310 8000 031 304 3725 mrpricegroup.com
Mr Price Apparel North Concourse, 031 310 8638 031 304 3358 mrp.com
65 Masabalala mrphome.com
Mr Price Home Yengwa Avenue, Durban, 4001 031 310 8809 031 328 4138 mrpricesport.com
Mr Price Sport Private Bag X04, Snell Parade, 031 310 8545 031 306 9347 sheetstreet.co.za
Sheet Street Durban, 4074 031 310 8300 031 310 8317 mrpricefoundation.org
Mr Price Foundation 031 310 8242 031 328 4609

Miladys 30 Station Drive, Durban, 4001 031 313 5538 031 313 5620 miladys.co.za
PO Box 3562, Durban, 4000

Yuppiechef 14 Stibitz Street, 021 702 4969 yuppiechef.com

Westlake, 7945

Power Fashion 350 Umhlangane Road, 031 570 8400 powerfashion.co.za

Riverhorse Valley, Redhill, 4071

Studio 88 Aeroton Business Park, 011 006 0888 studio-88.co.za

30 O’Connor Place, Aeroton,
Johannesburg, 2190

Mr Price Money 214 Dr Pixley KaSeme Street, 031 334 1011 mrpmoney.co.za
Mr Price Mobile Durban, 4001
PO Box 4996, Durban, 4000

KPMG FairCall BNT 371, PO Box 14671 0800 00 6465 www.thornhill.co.za/kpmgfair-

Sinoville, 0129 callreport/questionnaire/main/

Customer Care 0800 212 535

Account Services 0861 066 639

Company Secretary and Registered Office Domicile and Country of Incorporation

Janis Cheadle Republic of South Africa
Address: Upper level, North Concourse, 65 Masabalala
Yengwa Avenue, Durban, 4001
Address: PO Box 912, Durban, 4000 Sponsor
Tel: 031 310 8000
Investec Bank Limited

Investor Relations Registration Number

Matthew Warriner 1933/004418/06
Address: Upper level, North Concourse, 65 Masabalala
Yengwa Avenue, Durban, 4001
Address: PO Box 912, Durban, 4000 Independent Auditors
Tel: 031 310 8000 FY2024 Deloitte & Touche

Transfer Secretaries
Computershare Investor Services (Pty) Ltd
Address: Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
Address: Private Bag X9000, Saxonwold, 2132
Tel: 011 370 5000
Email: [email protected]