JB Hi-Fi half-year profit up 7.5% to $95.2m
JB Hi-Fi has posted a 7.5 percent increase in its key half-year
profit, as stronger retail demand and the struggles of Dick Smith
boosted earnings.
The first-half results encompass the vital pre-Christmas trading
period, where most retailers book a large part of their annual revenues.
JB Hi-Fi increased profit over this period to $95.2 million, and
forecasts that it is on track to post an annual net profit after tax of
$143-$147 million.
Sales were up 7.7 percent to $2.1 billion, with sales at
long-established stores up 5.2 percent and the remaining growth from the
increased store numbers - the company opened seven new stores in the
half and hopes to open one more this year.
JB is also continuing to muscle in on whitegoods and small
appliances, threatening rivals such as Harvey Norman and Bing Lee.
JB Hi-Fi now has 194 stores in Australia and New Zealand, of which 56
sell white goods, while 22 JB Hi-Fi stores added small appliances in the
half-year to December, with another 15 to follow over the remaining
financial year.The result was an early positive indication that
Christmas had been kind to some retailers.
"This was a solid result with trading in the important November and
December periods particularly strong as we executed on a great
promotional plan," said JB Hi-Fi's chief executive Richard Murray.
While Dick Smith only went into receivership in early January, JB Hi-Fi's
rival had been struggling with sales for some time, and its downfall is
expected to continue boosting JB's fortunes.
JB Hi-Fi has already reported strong January sales results, despite
discounting some Dick Smith merchandise by the receivers, with a
consolidated growth of 10.2 percent.
"Sales in January 2016 were pleasing given the strength in the prior
year, with back to school technology purchases in both our retail and
solutions businesses driving sales," Murray said.
JB Hi-Fi will pay an interim dividend of 63 cents per share, up from
59 cents at the same point last year.
- ABC News
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