JB Hi Fi Delivers 86.2% Lift In Profits, Online Sales Up 161%
JB Hi-Fi is booming, profits are up 86.2% off the back of a 31% lift in sales during the COVID-19 lockdowns.
The result saw the Consumer Electronics and Appliance Companies shares climb to $53.83 their online sales grew 161.7% as consumers headed online Vs a local store.
According to Group CEO Richard Murray “elevated” demand for consumer electronics and home appliance products contributed to a net profit after tax of $371.7 million.
Sales in the six months to December 31 lifted 23.7 per cent to $4.94 billion and earnings before interest and tax jumped 75.9 per cent to $462.7 million.
The retailer said growth in online sales and a “well-executed” Black Friday promotional period more than offset government mandated temporary store closures.
The Company that also own The Good Guys generated $678.8 million, representing 13.7 per cent of sales.
Gross margins expanded in key categories, especially in The Good Guys business where consumers flocked for appliances and large screen TV’s.
Also benefitting from the surge were suppliers who are struggling to keep up with demand and the shortage of stock.
Another major contributor to the profit growth was that many goods were not being discounted due to the shortage of stock.
In a statement to the ASX JB Hi Fi said that gross margins were well managed with strong improvements in gross margins in key categories, particularly.
in The Good Guys but offset by sales mix in JB HI-FI Australia and JB HI-FI New Zealand.
Disciplined cost control combined with strong sales growth drove significant operating leverage.
The Group did not receive any government wage subsidies and continued to pay landlords and team members throughout the half, including the periods where stores were temporarily closed.
Group CEO, Richard Murray, said “We are pleased to report record sales and earnings for HY21, in what has been an extraordinary period. Our continued focus on the customer, and investments in our online
business and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both instore and online.”
Richard said “I would like to thank our over 13,000 team members who have continued to do an incredible job and worked tirelessly throughout this period. As I have said before, our team members are our number.
one asset and our most important competitive advantage; their dedication and deep product knowledge continues to delight our customers every day.”
The Group will release its half year audited statutory results on Monday the 15th of February 2021.