Published: Mon, February 12, 2018
Money | By Armando Alvarado

JB Hi-Fi sales and revenue lift

JB Hi-Fi sales and revenue lift

Sales in New Zealand were down 0.4 per cent to $123.6 million and its earnings before interest and tax were zero, compared to $1m a year ago, although that was largely weighed down by $5m in lost sales and one-off closure costs.

These growth figures have been affected by the company?s major acquisition of The Good Guys in November 2016, however JB Hi-Fi?s Australian segment continues to perform strongly despite the recent arrival of Amazon.

JB Hi-Fi said half-year total sales rose 41 percent to A$3.69 billion, helped by strong audio device and drone sales in Australia.

Group CEO, Richard Murray says, "We are pleased to have delivered record sales and earnings in the first half".

JB Hi-Fi expects to close the 2018 financial year with total Group sales to be around $6.85 billion - being $4.75 billion for JB HI-FI and $2.1billion for The Good Guys.

The board declared a fully-franked interim dividend of 86 Australian cents per share, payable on March 9 with a February 23 record date. The company did not break down the results for its solutions business but said that recorded a double digit sales growth. As far as online sales go, that improved as well with a 40.6% increase in sales online.

Turkish Military Copter Crashes in Syria, 2 Killed
At least 17 Turkish military personnel have been killed in the three-week offensive to clear Afrin of the Kurdish YPG militia. He said Turkey would respond harshly to the attack and that the "perpetrators" would pay a "heavy price" for the downing.

Despite this, Murray says he is happy with how the business unit is tracking overall. This comprises $4.75 billion from JB Hi-Fi and $2.1 billion from The Good Guys.

Performance of JB's New Zealand business was less pleasing.

Total sales growth for The Good Guys was 5.0% and comparable sales growth was 3.5% in January 2017, and the same figures fell to -3.5% and -4.7% respectively in January 2018.

The discount retailer signalled the shift for the New Zealand division past year, taking an A$15.8 million impairment charge on the business after reviewing the unit and deciding on a way to revive sales and fatten margins.

"Having owned The Good Guys for over 12 months we are now starting to realise the benefits of the scale of the combined group and remain excited by the opportunity to grow one of Australia's leading retail brands".

Like this: