In Summary
  • South African fashion retailer Mr Price recorded a Sh84 million loss in its Kenyan operation in the 10 months ended March, largely driven by start-up costs.
  • The multinational in May last year spent R19 million (Sh133 million) to acquire 12 stores as part of its buyout of the franchise from its former partner Deacons East Africa.

South African fashion retailer Mr Price recorded a Sh84 million loss in its Kenyan operation in the 10 months ended March, largely driven by start-up costs.

The multinational in May last year spent R19 million (Sh133 million) to acquire 12 stores as part of its buyout of the franchise from its former partner Deacons East Africa.

“From the date of acquisition, revenue contributed was R146 million (Sh1 billion) and net loss contributed was R12 million (Sh84 million), affected by once-off start-up costs,” Mr Price said in a trading update.

The performance shows that the business is headed to profitability, having narrowed the net loss from Sh91 million reported in the first five months of operation.

The company currently lists 11 stores in Kenya — six mrpApparel branches (stocking clothing) and five mrpHome stores (selling home decor).

At Sh1 billion, revenue in the period surpassed the Sh378 million turnover posted by Deacons in the six months ended June 2018, explaining the impact of the franchise loss on the Nairobi Securities Exchange-listed firm which subsequently became insolvent.

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