From his early days in the retail industry to his current leadership role, Praneel Nundkumar, group CFO for Mr Price, has had the rare opportunity to tap into his full set of capabilities. Appointed at the age of 39, he is also the group’s youngest exco member.
Previously the managing director of Mr Price Money, Praneel Nundkumar was appointed as the Mr Price Group’s CFO in August 2023. He has embraced the challenge of the role, including the nuances of how the clothing fashion retail cycle, which is driven by seasonal changes, plays out in the business strategy.
“Our customers love fashion, and our ability to provide this at value-price points is what makes Mr Price the people’s value champion.”
Leading the finance function in an evolving and growing group has been a great opportunity to stretch and tap into his full set of capabilities, he believes.
“I had to land on my feet quickly, get to grips with the board reporting cycle and contribute to influencing leaders in the business in the assessment and deployment of capital in line with the group’s strategy. In the transition of roles from the managing director of Mr Price Money to the group’s CFO role, I was very intentional about elevating and repositioning my personal brand, which I believe is so critical for professionals who aspire to achieve internal promotions,” he explained.
His steepest learning curve was establishing when to pivot between being in the granular detail on critical issues and when to take a more high-level strategic view.
“The CFO role in a top 40 listed entity comes with a wide scope of focus areas. To be successful, one must grasp the core details of critical issues, but not over-analyse them, while, at the same time, taking a long-term view,” he says.
Praneel joined the Durban-based retailer as a finance executive in 2016. He became Mr Price Money's financial director in 2019 and was promoted to managing director in 2020. He attributes his long tenure to the dynamism of a fast-growing organisation and its culture.
“The culture is infectious. Everyone has a passion for the business, and when you bring like-minded, passionate people together, that’s when you see the magic happen. You see it in the share price growth and in new ideas and different ways of doing things,” he notes.
Above market growth, together with Mr Price’s acquisitions of Studio 88, Yuppiechef and Power Fashion, have created growth opportunities for young leaders. Appointed at the age of 39, Praneel is the group’s youngest C-suite and exco member.
Before Mr Price, Praneel served as the chief operations and financial officer at the Durban Chamber of Commerce and Industry and as a financial services manager of IT Dynamics. He began his career as an auditor at PwC, where he qualified as a chartered accountant.
Betting on local growth
Praneel believes that one of the CFO’s primary roles is to create shareholder value, both in share price growth and attractive dividends payouts. “A key skill in the CFO toolkit to unlock shareholder value is the art of storytelling, which is oftentimes so underrated. Storytelling is an effective way to engage the investment community on the rationale for business decisions and investment in projects, and this level of visibility aids in linking management actions to the larger strategic moves.”
Mr Price continues to enjoy market share gains and a strong share price performance, in excess of 40 percent growth over the past year, which is significant considering the constrained operating environment the country has faced. By the end of its 2024 financial year, the annual compound growth rate of HEPS, over 38 years, was 18.4 percent, while the same figure for dividend growth was 19 percent.
The company still sees growth potential in South Africa and is expanding its store footprint. In the 2024 financial year, the retailer allocated almost R1 billion in capex, with the lion's share going into the store environment, even as other competitors were more cautious. “One of my responsibilities includes the allocation of capital reserves of the group to projects with high-performing returns. This includes understanding which retail chains are giving us the best returns at the store level and which brands to invest in to outperform the market.”
Mr Price is a cash-based retailer with over 80 percent of transactions in cash. It has a deliberately cautious approach to extending credit. “In our 2024 analyst presentation, we highlighted that we approved around 18 percent of credit applications received from customers. Yes, there is massive demand, but our data-driven approach to extending credit informs our view of the consumer credit environment being under stress, hence if the macro-economics change, we are agile in responding from a credit strategy perspective. We want to support responsible lending at all times,” says Praneel.
Over the past three years, growth was supported by acquisitions. In 2024, the contribution of acquisitions to operating profits approached the R1 billion mark. This is not to say that Mr Price doesn’t scan the marketplace for opportunities. The group has a dedicated strategy team called Apex, which draws support from the CEO and CFO. Here, Mr Price has clear requirements of what an acquisition must deliver: “The key is to find quality businesses with high-growth potential that can add value for shareholders and have a good sustainable runway into the future.”
Launching Mr Price Mobile
Praneel was involved with the development and growth of Mr Price Mobile, which fell under Mr Price Money. It stands out as one of his favourite projects. It was launched in 2014 as one of South Africa’s first mobile virtual network operators (MVNOs), competing with well-established telecoms players.
“At the time, customers had little choice. We wanted to offer consumers value because that’s what Mr Price stands for. We were able to create customised packages of airtime and data and market these to our customer base,” says Praneel. Customers could pay for packages using the Mr Price Money store card and benefit from free data when shopping using the card. This rewarded customers, boosting brand loyalty and created stickiness.
In 2018, the group refined its telecoms strategy and began retailing cellular devices in stores. “We were one of the last clothing retailers to enter this space, which was highly crowded and contested. To prove our business case, we asked the board to approve 10 stores with two-square-metre kiosks. Today Mr Price Cellular is one of the group’s fastest growing revenue vehicles, reaching R1.2 billion in turnover in the last financial year, with increasing market share.”
Mr Price Cellular has over 40 standalone stores and a presence in around 500 Mr Price stores. It sells cell phones and accessories and caters for the growing gaming market with gaming devices and vouchers. In 2023, Mr Price Cellular launched its own white-label smartphone devices under the Salt brand.
The Salt devices retail at a value price point, but offer high-quality screen and camera specs. Demand for these cell phones has been good. “It comes back to understanding our customer and what she places value on in her purchase. We also know that customers trust the Mr Price brand, which has supported the success of the launch of this organic concept.”
Praneel’s first year as Mr Price’s CFO has stretched his skills and given him a new appreciation for the changing role of the finance leader. “Smooth seas never make for skilled sailors,” he concludes. “It’s been a year of significant change, including an external auditor transition and overall, it’s been a really productive year for me with great learnings along the way. Let’s see what year two brings!”
