Strong sales growth in phones, computers, audio equipment and home appliances has helped JB Hi-Fi record a 13 per cent boost in net profit, beating its own guidance.
The electronics retailer said its net profit after tax for the 12 months to June 30 was $172.4 million, up from $152.2 million in the same period last year.
JB Hi-Fi buys The Good Guys
JB Hi-Fi acquisition of The Good Guys makes the consumer electronics and home appliance market another of Australia’s two-horse retail races. Catie Low comments.
Total revenue grew 42 per cent after the company took over home appliance retailer The Good Guys in November 2016.
Sales at its flagship JB Hi-Fi stores grew 10.9 per cent to $4.1 billion. Stripping out the impact of new stores, sales grew by 8.6 per cent.
Sales grew strongly in phones, computers, audio equipment and home appliances. Photo: Penny Stephens
“Hardware and services sales … were up 14.4 per cent for the financial year, with comparable sales up 11.9 per cent, driven by the communications, audio, cameras, accessories, computers and home appliance categories,” the company said in a statement to the ASX.
JB Hi-FI said net profit after tax (NPAT) increased 36.5 per cent to $207.7 million on an “underlying” basis, which removes $22.4 million in transaction fees and other costs associated with buying The Good Guys and $15.8 million in writedowns to the value of its New Zealand business.
This beat its own guidance made in February of underlying NPAT of between $200 million and $206 million.
The Good Guys’ revenue was up 0.2 per cent and down 1.3 per cent on a like-for-like basis.
The company said it was on track to record up to $20 million in efficiency savings from combining the two business by the 2019 financial year – one year earlier than expected.
JB Hi-Fi declared a final dividend of 46¢, bringing its full-year payout to $1.18 – up 18 per cent on last year.
More to come