Finance Consumer JB Hi-Fi profit soars, lockdowns hit sales

JB Hi-Fi profit soars, lockdowns hit sales

JB Hi Fi profit
Retailing giant JB Hi-Fi has posted a 67 per cent jump in full-year profit.
Twitter Facebook Reddit Pinterest Email

JB Hi-Fi has warned of disruptions from the ongoing COVID-19 lockdowns despite delivering a jump in full-year profits and dividend on the back of heightened demand for home appliances and technology products.

The electronics and appliances retailing giant on Monday posted a 67 per cent rise in net profit for the year to June 30, rising to $506.1 million.

Sales for the 12-month period increased 12.6 per cent to $8.6 billion, with online sales soaring 78 per cent to $1.1 billion.

“Our continued focus on the customer, combined with the strength and competitive advantage of our multichannel offer, be it in-store, online or over the phone, has enabled us to seamlessly meet our customers’ increased demand,” incoming group chief executive Terry Smart said.

By 1145 AEST, shares in the company were up 0.6 per cent to $48.62.

Sales at its JB Hi-Fi Australia stores were up 12 per cent to $5.96 billion. Its New Zealand stores booked sales growth of 17.4 per cent to $NZ261.6 million.

Subsidiary chain The Good Guys, which focuses on electrical and home appliances, racked up a 13.7 per cent growth in sales to $2.72 billion.

It lifted gross margins for the year, with the cost of doing business dropping 91 basis points to 11.2 per cent.

Despite the continued strong demand, the retailer has flagged a slump in sales in the current financial year.

The company said it had experienced “disruption and variability” in sales since July 1 as a result of the various state-based COVID restrictions.

As a result, sales at its JB Hi-Fi Australia stores were down 14.6 per cent over that period, while The Good Guys had a sales drop of 8.1 per cent.

The retailer declined to provide a guidance for sales and earnings guidance for FY22 due to “the ongoing uncertainty arising from COVID-19”.

Meanwhile, JB Hi-Fi declared a fully-franked final dividend of $1.07 per share, up from 90 cents a year ago.