Mr Price says it has pushed its operating profit above R6bn for the first time in its 2026 financial year as the retailer continued to attract shoppers looking for value despite persisting pressure on household budgets.Operating profit shows how much money the core business is making before interest and tax. It strips away many accounting and financing factors and reveals whether the retailer is running its stores efficiently and profitably.The group on Friday reported an increase of 4.3% in operating profit, meaning it generated about R16.5m in operating profit every day over the 52-week period to end-March. Revenue increased 4.2% to R42.7bn. Retail sales rose 4.3% to R41.1bn, slightly ahead of the broader retail sector’s growth of 4.0%, it said. The retailer also improved its gross profit margin by 70 basis points to 41.2%, despite what it described as a highly promotional trading environment. Normalised diluted headline earnings per share increased 8%.Mr Price declared a final shareholder payout of 592.8c per share and maintained its dividend payout ratio at 63%.“I am very proud of how our team has responded to the volatility experienced this year. The agility of our operating model and the strength of our value retailing DNA have enabled operating leverage in a challenging retail environment,” said CEO Mark Blair. Mr Price opened 196 new stores during the year, taking its total footprint to 3,182 stores across 15 trading chains. The group plans to open about 180 more stores in South Africa during the current financial year.Growth was led by the telecoms business, where retail sales increased 10.3%. The apparel division, which contributes nearly 80% of group retail sales, grew 4.2%, while the homeware segment increased sales by 3.8%.Mr Price said customers remained focused on value. Cash purchases accounted for 89.4% of retail sales, while more than half of online orders were collected in stores.The group said its value-focused model helped it outperform the broader retail market during the year. “We are confident in our ability to perform across economic cycles while continuing to deliver value to our customers,” said Blair. Mr Price said it has also completed its acquisition of European discount retailer NKD after year-end. Transaction-related costs linked to the deal affected reported earnings, though the group said underlying performance remained strong.The group warned rising oil prices and renewed inflation pressures linked to the conflict involving Iran could weigh on consumers and businesses.Meanwhile, trading in April was challenging as consumer confidence weakened, but conditions improved during May and early June, the group said.“There is an underlying optimism about South Africa’s long-term prospects, and we remain positive about our business’s ability to continue performing strongly. However, the conflict in Iran has brought uncertainty to the short-term and we are focused on ensuring we manage the impacts and continue to deliver value to our loyal customers,” the CEO said.