JB Hi-Fi Limited Half Year 2018 Results

JB Hi-Fi Limited today reports net profit after tax (NPAT) up 21.0% to $151.7 million (HY17: $125.4 million) from $3.7 billion of sales (HY17: $2.6 billion) for the half year ended 31 December 2017 (HY18). Total sales growth for HY18 was 41.0%. Group EBIT was up 24.9% on the pcp to $225.8 million and EPS was up 13.7% to 132.2 cps.

JB HI-FI Australia

Total sales grew by 10.8% to $2.48 billion, with comparable sales up 7.8%. Key growth categories were the Communications, Computers, Audio, Drones and Games Hardware categories. Online sales grew 40.6% to $119.3 million or 4.8% of total sales, as the Online offer continues to improve. The Solutions business recorded double digit sales growth and remains on track to deliver on the longer term aspirational sales target of approximately $500 million per annum, through both organic growth and strategic acquisitions.

Gross profit increased by 9.8% to $545.3 million resulting in a gross margin of 22.0%. CODB was 13.8%, down 17 bps on the pcp. Total operating costs remained well controlled as the business managed increased volumes through the store network driven by new products, Click and Collect, Online and Commercial order fulfilment. The business’s low CODB remains a competitive advantage and is maintained through continued focus on productivity and minimising unnecessary expenditure.

Strong sales growth, combined with operating cost leverage, drove strong earnings growth. EBIT was up 10.9% on the pcp to $183.7 million with EBIT margin flat at 7.4%.

JB HI-FI New Zealand

Total sales were down 0.4% to NZD124.6 million. Comparable sales for HY18 were up 2.4%, with Q2 comparable sales up 8.7%. Following the launch of the new website in August 2017, Online sales in New Zealand grew 89.8% to NZD4.8 million or 3.8% of total sales. Gross Margin was down 169 bps on the pcp at 17.5%. During HY18, one store in New Zealand was closed and whitegoods have been exited, with the four JB HI-FI HOME stores rebranded to JB HI-FI. The store closure impact to sales was NZD4.6 million and included in the HY18 result are one-off costs associated with the store closure and exit of Whitegoods of NZD0.4 million.


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