March 26, 2020 / 3:15 PM / 4 days ago

BRIEF-Mr Price Group Says COVID-19 To Matterially Impact FY21 Performance

March 26 (Reuters) - Mr Price Group Ltd:

* COVID-19 UPDATE

* INITIAL CONCERNS WERE ABOUT SUPPLY AS FACTORIES IN CHINA CLOSED DUE TO OUTBREAK AND SPREAD OF COVID-19

* IN FIRST TWO WEEKS OF MARCH, SALES GREW 8.6%

* CHINA REPRESENTS APPROXIMATELY 47% OF CO’S ORDER BOOK

* FOR PERIOD BETWEEN 16 MARCH 2020 AND 24 MARCH 2020, SALES PROGRESSIVELY DETERIORATED AND FELL 22.1%.

* ANNUAL SALARY INCREASES FOR HEAD OFFICE ASSOCIATES HAVE BEEN DELAYED UNTIL FURTHER NOTICE

* EXECUTIVE MANAGEMENT AND BOARD OF DIRECTORS HAVE COMMITTED TO A CUT IN SALARIES AND FEES.

* HAVE COMMITTED TO PAY ALL OUR ASSOCIATES THEIR FULL SALARY AND BENEFITS IN MARCH AND APRIL,

* IMPACT OF COVID-19 MAY ALSO AFFECT DECLARATION OF FY2020 FINAL DIVIDEND

* DEBTORS’ BOOK, PREVIOUSLY REPORTED AT R2.1BN, IS EXPECTED TO COME UNDER PRESSURE.

* CHALLENGING TO ACCURATELY QUANTIFY TOTAL IMPACT OF COVID-19, BUT NO DOUBT THAT IT WILL MATERIALLY AFFECT PERFORMANCE IN FY2021

* STORES, E-COMMERCE, HEAD OFFICE, DISTRIBUTION CENTRE AND CALL CENTRES WILL ALL BE CLOSED BETWEEN 27 MARCH 2020 AND 16 APRIL 2020.

* ANTICIPATE MAKING NO SALES IN SOUTH AFRICA (C.92% OF GROUP SALES) OVER LOCKDOWN PERIOD.

* IN FIRST THREE WEEKS OF FY2020, R1.2BN IN SALES WERE ACHIEVED. Source text for Eikon: Further company coverage:

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