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JB Hi-Fi delivers record profit

Petrina Berry  |  14 Aug 2017Text size  Decrease  Increase  |  

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BRISBANE - [AAP] Electronics retailer JB Hi-Fi (ASX: JBH) has reported strong sales growth for the 2017 financial year and says it expects that to continue heading into the peak Christmas trade.

JB Hi-Fi's full-year profit rose 13.3 per cent to $172.4 million in the 12 months to June 30 with revenue up 42.3 per cent to $5.63 billion following November's acquisition of white goods retailer The Good Guys.

Underlying profit, which strips out acquisition costs, jumped 36.5 per cent to $207.7 million and comparable sales, which removes new store openings, grew 8.6 per cent in the 12 months to June 30.

The group's hardware and services sales were up 14.4 per cent from a year ago and the key growth products, including phones, stereos, cameras, and home appliances, rose 11.9 per cent.

The ongoing sales declined in CDs, DVDs and games continued with a fall of 9.1 per cent--or 10.7 per cent on a comparable basis.

JB Hi-Fi's online sales grew 38.4 per cent and now represents 3.8 per cent of total sales.

The Good Guys' total sales were up 0.2 per cent to $1.26 billion, but comparable sales were down 1.3 per cent in the seven months JB Hi-Fi has owned the business.

Chief executive Richard Murray said 2016/17 was a strong year for the group and the positive sales momentum had continued into the 2018 financial year.

"The July sales results in both the JB Hi-Fi and The Goods Guys businesses are pleasing, especially in light of the strong sales growth in the prior year," he said.

"We are clear on our objectives for 2018 and feel we have good momentum heading into the important Christmas trading period."

He said total group sales were expected to come in around $6.8 billion in the 2018 financial year.

Shares in JB Hi-Fi were down 48.5 cents, or 1.9 per cent, at $24.88 at 1024 AEST.

JB HI-FI PROFIT HITS RECORD:

* Net profit up 13.3pct to $172.4m

* Revenue up 42.3pct to $5.63bn

* Fully franked final dividend 46 cents, up 9 cents

 

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