A record result.
Total sales growth for JB Hi-Fi for the full year ended 30 June, 2017 was 42.3% as net profit after tax (NPAT) jumped 36.5% $207.7 million from $5.6 billion of sales. Group EBIT was up 38.5% on the previous corresponding period to $306.3 million. Growth was attributed to the communications, audio, cameras, accessories, computers and home appliance categories.
JB Hi-Fi group CEO, Richard Murray said, “2017 has been a great year. We are pleased to have delivered record sales and earnings, both on a statutory and underlying basis. It has been a particularly strong 18 months for the JB Hi-Fi business in Australia and we are pleased with the recent performance of The Good Guys and excited about the future opportunities for the group.”
Total sales in Australia for JB Hi-Fi grew by 10.9% to $4.15 billion with comparable sales up 8.6%. In FY17, online sales grew 38.4% to $158.9 million or 2.8% of total sales.
JB Hi-Fi group CEO, Richard Murray (Photo Credit: Sarah Matray)
Gross profit increased by 11.7% to $922.8 million resulting in a gross margin of 22.2%. Strong sales growth, combined with operating cost leverage, drove strong earnings growth. EBIT was up 19.1% on the previous corresponding period to $262.4 million.
The Good Guys
The Good Guys was acquired on 28 November, 2016. For the period under JB Hi-Fi ownership, total sales were up 0.2% to $1.26 billion with comparable sales down 1.3%. Key growth categories were cooking, seasonal products, visual, refrigeration and laundry. Online sales were $64.4 million or 5.1% of total sales. Earnings for the period under JB Hi-Fi ownership of $46.4 million were pleasing and in line with the previous corresponding period.
The company has a total of 303 stores in Australia and New Zealand as at 30 June, 2017. In Australia, six new JB Hi-Fi stores were opened in FY17. One new JB Hi-Fi store was opened in New Zealand in FY17. Three new The Good Guys stores were opened and two stores closed in FY17.
The company continues to review opportunities for new stores across Australia and New Zealand.
Outlook
For July 2017, total sales growth for JB Hi-Fi was 8.8% (July 2016: 13.4%) with comparable sales growth of 5.8% (July 2016: 9.5%). Total sales growth for The Good Guys was 6.8% with comparable sales growth of 5.7%.
In FY18, the company expects to open five JB Hi-Fi stores and continue to monitor opportunities for new The Good Guys stores. Total group sales are expected to be circa $6.8 billion (JB Hi-Fi $4.65 billion and The Good Guys $2.15 billion).
Richard Murray said, “2017 has been a strong year for the group. The July sales results in both the JB Hi-Fi and The Good Guys businesses are pleasing, especially in light of the strong sales growth in the prior year. We are clear on our objectives for 2018 and feel we have good momentum heading into the important Christmas trading period.”