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JB Hi-Fi Half-Year Net Profit Down 9.4%, Stock Surges

JB Hi-Fi has flagged to investors that its half-year earnings and net profit will down be down by more than 9 per cent, due to supply chain crunch, lockdowns and reduced sales.

Despite this forecast shares in the CE and appliance retailer, have risen by more than 6 per cent since the market opened this morning.

The stock soared 6.2 per cent to $49.54 at 10.21am AEDT after peaking at $50.20.

For the six month period to December 31, total sales are down 1.6 per cent on the prior same period, sitting at $4.86 billion.

The good news is these numbers are up an impressive 21.7 per cent from the same period in 2019, and that online sales for the group leapt 63 per cent, to make up $1.1 billion of their total business in the December half.

JB were lucky to mostly avoid the supply chain that crippled other retailers.

“Our business is able to buy from multiple suppliers,” CEO Terry Smart said. “We’ve been able to balance that out over the last six months” due to longer lead times.

Earnings before interest and taxes for the December quarter were $420.5m, down just 9.1 per cent on the same period last year, but up 59.9 per cent over a two-year period.

Net profit after tax has dropped 9.4 per cent to $317.7m.

Net profit after tax is likely to fall 9.4 per cent to $287.9m, from $317.7m in HY21.

The second quarter (Oct-Dec) rose 1.2 per cent compared to the previous year, and 1.9 compared from the July-Sept quarter – and jumped 23 per cent from the Oct-Dec 2020 quarter.

“We are pleased to report strong sales and earnings for HY22,” CEO Terry Smart said.

“In challenging circumstances, we have again demonstrated our ability to adapt and respond to meet the strong demand from our customers, both in-store and online.”

Unfortunately, of the group’s 13,000 staff, more than a thousand are currently not able to work.

“On some days up to 10 per cent of staff are either isolating or unwell. We’re probably representative of the broader population,” Smart said.

JB will release its final, audited results on February 14.



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