By one year.
JB Hi-Fi expects to achieve the upper end of its synergy target of $15 million to $20 million as a result of its acquisition of The Good Guys on 28 November, 2016. This target is now expected to be fully realised in FY19, one year earlier than originally anticipated, with approximately half of the benefit to be achieved in FY18.
The remaining $2 million to $4 million of implementation costs are expected to be in the incurred in the first half of FY18. The synergies will be recorded within earnings in each of the JB Hi-Fi and The Good Guys businesses in FY18 and FY19 and are broadly split equally between both businesses.
JB Hi-Fi group CEO, Richard Murray said, “We are very pleased with the opportunities that the combined Group provides and we have today confirmed the achievement of our synergies target, to be fully realised one year earlier than originally anticipated. Both JB Hi-Fi and The Good Guys have a proud history of delivering great value every day to customers and, as we realise value from the Group’s scale, we will reinvest in both businesses to strengthen their competitive position and drive future growth.”