JB Hi-Fi has reported record sales and earnings for 2022, with consumers continuing to spend on discretionary items despite fears of a pinch.
JB Hi-Fi reports a 3.5 per cent lift in sales, to $9.32 billion, while net profits jumped 7.7 per cent, to $544.9 million.
The company boosted its full-year dividend by 43 per cent, announcing a final dividend of $1.53 per share, payable on September 9. This brings the total FY22 to $3.16 per share.
With this, and the off-market share buy-back, the group will have returned $604m to shareholders.
“We are pleased to report record sales and earnings for 2022,” said JB Hi-Fi chief executive Terry Smart.
“These results reinforce the enormous trust our customers have in our brands and the strength of our multichannel offer, which continues to provide customers with choice on how to shop.”
For the first six months of calendar 2022, sales were up 9.9 per cent, year-on-year, with spending accelerating as pandemic restrictions eased.
While customers returned to shopping in-store, they also continued to shop online. Online sales were up 52.8 per cent, to $1.6 3 billion. Online commerce made up 17.6 per cent of total sales through FY22.
During the second half, when all retail stores across Australia and New Zealand were open, online sales still made up 11.9 per cent of total sales.
“As we enter an increasingly uncertain retail environment and household budgets come under further pressure, customers will gravitate to trusted value-driven retailers,” Smart said.
“Our ongoing strategy of providing customers with the best value and outstanding service every day, will ensure our brands continue to deliver for our customers and remain a destination of choice into the future.”
The supply constraints due to the pandemic have also lifted. Group inventory as of June 30 reached $1.14 billion, up nearly $200 million for the previous year.
At JB Hi-Fi’s Australian stores, total sales were up 4 per cent to $6.20 billion, with second-half sales up 11.7 per cent, due to continued heightened customer demand for consumer electronics and home appliance products.
Hardware and Services sales were up 5.0 per cent, with Communications, Visual, Small Appliances, Smart Homes and Accessories being the key categories.
Software sales dropped 11.9 per cent, with physical sales of movies, music, and games falling in line with the general market. Software sales make up just 4.7 per cent of JB Hi-Fi Australia’s total sales, down from 5.5 per cent in 2021.
The New Zealand stores saw a modest 0.3 per cent sales leap, to A$238.7 million, with second-half sales up 6.7 per cent.
The Good Guys saw total sales grow by 2.7 per cent to $2.79 billion, with second-half sales up 6.7 per cent.
Gross profit was $649.9 million, with gross margins up 23.3 per cent.
Top sellers at The Good Guys were laundry, portable appliances, floorcare, dishwashers and visual. EBIT was up by 12.5 per cent to $241.4 million, with second-half EBIT up 36.5 per cent.
Smart noted in a call to analysts that JB Hi-Fi’s strong results are an indicator that certain tech has moved past being purely discretionary items.
“Phones and computers are very much so integrated into our customers’ lives these days,” Smart said.
“They want the latest tech, they say that every time.”
