23.6% jump and 1.7% drop, respectively.
In a company statement, chief executive officer, Richard Murray, said: “we are pleased to have delivered record sales and earnings results for the half. It has been a particularly strong 12 months for the JB Hi-Fi business in Australia and we are pleased to have completed our acquisition of The Good Guys”.
“As previously highlighted, the closure of Dick Smith Electronics during the second half of FY16 has contributed to an increase in JB Hi-Fi sales in the first half of FY17; however the impact will be moderate as we cycle through their decline and eventual market exit,” Murray said.
“In FY17, the company expects group sales to be $5.58 billion – JB Hi-Fi %$4.22 billion and The Good Guys $1.25 billion (for the period from 28 November 2016 to 30 June 2017) and group net profit after tax to be in the range of $200 million to $206 million – an increase of 31.4 per cent to 35.4 per cent on the previous corresponding period.
“We are pleased with the Group’s results for the half. Having successfully completed our acquisition of The Good Guys, the Group is well positioned to build on its solid momentum into the second half.”
Here is an overview of the main points from the announcement:
- Half year sales to 31 December have increased by 23.5 per cent to $2.6 billion compared to $2.1 billion over the same period in the previous year
- Net profit has increased by 31.7 per cent to $125.4 million compared to $95.2 million over the same period in the previous year
- Total sales in Australia grew by 11.7 per cent to $2.2 billion, with comparable or ‘like for like’ sales up by 8.7 per cent
- Key growth categories included: Communications, Audio, Cameras, Accessories, Computers and Home Appliance Categories.
- Online sales in Australia grew 40.4 per cent to $84.8 million or 3.8 per cent of total sales compared to the same period in the previous year
- New Zealand sales were down 1.7 per cent to $NZ125.1 million with like for like sales down by 11.2 per cent and the overall performance in New Zealand is “an ongoing focus for the management team”.
- JB Hi-Fi Solutions remains on track to deliver its longer term aspirational sales target of $500 million through organic growth and strategic acquisitions
- Gross profit in Australia increased by 13.2 per cent to $496.5 million with gross margin up by 0.3 per cent to 22.2 per cent.
- Cost of doing business was 13.9 per cent, a reduction of 0.26 per cent compared to the same period a year prior.
- As of the end of 2016, the company had a total of 302 stores in Australia and New Zealand.
- Four new JB Hi-Fi Home stores were opened over the six months to 31 December and small appliances were introduced to a further 17 existing JB Hi-Fi Home stores.
- One new JB Hi-Fi store was opened and small appliances were introduced to one existing JB Hi-Fi store in New Zealand over the six months to 31 December
- Two new JB Hi-Fi stores are expected to be opened in Australia between 1 January and 30 June 2017 and these stores will include small appliances
- Two new stores were be added to The Good Guys portfolio over the six months to 31 December, but these stores were opened prior to the JB Hi-Fi acquisition on 28 November.
- There were 103 stores in The Goods Guys network when the business was acquired on 28 November 2016.
- In January 2017, total sales growth for JB Hi-Fi was up by 9.8 per cent, compared to sales growth of 10.2 per cent in January 2016
- In January 2017, comparable or like for like sales growth was up by 7.2 per cent, compared to an increase of 6.5 per cent in January 2016.