JB Hi-Fi grows sales by 3.9% in first half

JB Hi-Fi has reported 3.9% sales growth to $4 billion for first half FY2020 with comparable sales growth up across JB Hi-Fi Australia, JB Hi-Fi New Zealand and The Good Guys.

Net profit after tax (NPAT) increased 8.9% to $174.4 million and earnings before interest and tax (EBIT) was up 8% to $255.6 million.

JB Hi-Fi group CEO, Richard Murray said the group achieved record sales and earnings in the first half. “I would like to thank the over 12,000 team members across Australia and New Zealand whose hard work and continued focus on our customers delivered this result.”

Total sales grew 5.1% for JB Hi-Fi Australia with comparable sales up 4.4%, driven by Apple mid-tier and flagship products, wireless headphones, PC laptops and big screen televisions 75-inch and above. Sales momentum was strong throughout the half but in particular, the key Christmas quarter. Online sales grew 18.3% to $170.8 million or 6.3% of total sales. The commercial business also recorded strong sales growth.

Total sales inched up 0.8% for JB Hi-Fi New Zealand with comparable sales also up 0.8%. Key growth categories were communications, small appliances, accessories and fitness. Online sales grew 22.3% to NZD9.6 million or 7.3% of total sales.

“We are pleased to have delivered positive comparable sales growth in the first half as we cycled very strong sales in the prior year. We are encouraged by the improvements made over the last 18 months and remain focused on delivering on our plan to reposition our New Zealand business,” Murray said.

Total sales grew 1.5% to $1.15 billion for The Good Guys with comparable sales up 0.6% driven by dishwashers, stick vacuums, robotic vacuums, cooking appliances, communications and computers. Online sales were up 12.6% to $79.6 million or 6.9% of total sales with strong sales on The Good Guys website partially offset by a decline in third party marketplace sales.

“Sales improved throughout the half which culminated in a strong Christmas quarter. In a competitive environment, we remained focused on growing sales and market share in a sustainable manner whilst continuing to evolve the business,” Murray said.

JB Hi-Fi also provided a trading update for January 2020 with sales growth of 6.5% for JB Hi-Fi Australia and comparable sales growth of 6%. This is an improvement from January 2019 when sales grew 3% and comparable sales were up 1.5%.

For The Good Guys, sales grew 1.4% compared to 1.8% in January 2019 with comparable sales up 1.4% compared to 0.3% in January 2019.

In FY20, the company expects total sales to be circa $7.33 billion, comprising $4.93 billion from JB Hi-Fi Australia, $240 million from JB Hi-Fi New Zealand and $2.18 billion from The Good Guys.

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