JB Hi-Fi reports record profits despite drop in online sales

Australia’s largest retailer of consumer electronics and home appliances, JB Hi-Fi, has posted a double-digit profit jump for the half-year thanks to strong demand during the Black Friday and Boxing Day promotions, which more than offset the decline in online sales.

In a statement to the ASX on Tuesday morning, the company said its revenue for the December half rose 8.6 percent to a record $5.3 billion, while net income rose 14.6 percent to $329.9 million US dollars.

Shares of JB Hi-Fi rose 3 percent to $48.53 after the result, leading gains on the local stock exchange as the S&P/ASX200 benchmark slipped 0.2 percent.

JB Hi-Fi CEO Terry Smart said the company had record sales and profits for the December half.

JB Hi-Fi CEO Terry Smart said the company had record sales and profits for the December half.Credit:Eamon Gallagher

The group’s Australian operations grew 9.1 percent to $3.6 billion and accounted for 68 percent of sales, while sales in New Zealand rose 16.1 percent to $161 million. Subsidiary The Good Guys reported revenue growth of 7.3 percent to $1.5 million.

It comes after the retailer reported a 9.4 percent drop in profit in the previous half of December that included business disruptions as a result of COVID-19.

Group chief executive Terry Smart said the latest results reflect a return to normal trading.

“We are delighted with record sales and profits for [the half year] as trading conditions began to normalize after two years of COVID-related disruption,” he said in a statement.

JB Hi-Fi has been a big beneficiary of the work-from-home trend during COVID-19, with online purchases growing 63 percent to $1.1 billion — or 22.7 percent — in the six months ended December 2021 of the company’s total sales – increased. This fell to $752.1 million, or 14.2 percent of total sales, in the last six months, although ABS data shows total online sales at the nation’s retailers rose 26 percent in November, reflecting the Black Friday’s increasing popularity is attributed to promotions.

https://www.smh.com.au/business/companies/jb-hi-fi-reports-record-profits-despite-drop-in-online-sales-20230117-p5cd2g.html?ref=rss&utm_medium=rss&utm_source=rss_business JB Hi-Fi reports record profits despite drop in online sales

Brian Lowry

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