JB Hi-Fi has defied the market by lifting profits 8% after sales surged close to 10%, NZ Sales surged 20% with their recent e&s acquisition also contributing to revenue growth.
For the 6 months ending 31 December 2024 total sales came in at $5.67 billion up 9.8%, net profit was $419M up 8% with their recent acquisition of Melbourne based trading adding to the Companies growth.
Back in September 2024 JB Fi management completed the acquisition of 75% of e&s a premium home appliance retailer that is set to take on Winnings and Harvey Norman Commercial in multiple States.
Between September and 30th of December 2024 total sales were up 7.6% to $92.3 million, with comparable sales up 7.2%. Sales growth was driven by the Commercial division.
The increase in sales at JB Hi-Fi has delivered hopes that a prolonged period of weak consumer demand is coming to an end with the CE and appliance retailer the first to report half-year earnings, with earnings across its businesses including The Good Guys and e&s.
EBIT was $1.9 million, in line with the Group’s expectations, with EBIT margin at 2.0%.
Sales also increased at The Good Guys by 9.2% to $1.52 billion
Comparable sales were up 8.8% with robotic vacuum cleaners and floorcare were televisions, portable appliances, cooking, and refrigeration contributing to the sales surge.
Online sales increased by 8.9% to $233.3 million or 15.4% of total sales.
Gross profit increased by 8.0% to $351.1 million with gross margin down 25 bps to 23.1%, driven by increased discounting.
Group CEO, Terry Smart said “We are pleased to report strong sales and earnings for HY25. In this challenging trading environment, marked by heightened competitor activity, our focus remained on
maximising demand through delivering consistently high levels of customer service and exceptional value for our customers.”
At JB Hi Fi sales increased by 7.2% to $3.88 billion, with comparable sales up 7.2%, driven by continued customer demand for technology and consumer electronics products, and supported by well-executed Black Friday
and Boxing Day promotional periods.
The key growth categories were mobile phones, small appliances, computers, TV with digital SLR cameras also in demand.
Online sales increased by 16.4% to $682.7 million or 17.6% of total sales.
Gross profit increased by 6.4% to $846.4 million with gross margin down 17 bps to 21.8%, driven by sales.
mix and increased competitive activity.
JB HI-FI New Zealand witnessed a significant surge in sales.
Total sales increased by 20.0% to NZD202.5 million, with comparable sales up 6.9%. Online sales increased by 58.4% to NZD32.4 million or 16.0% of total sales.
Gross profit increased by 22.4% to NZD34.5 million with gross margin up 33 bps to 17.0%. CODB was 13.8%, down 137 bps, and in absolute terms grew 9.2%, with disciplined cost control helping to manage inflationary.
cost pressures and continued investment in new stores and strategic initiatives management claimed.
Because the business is flush with cash from a bumper half year to December JB Hi-Fi has cranked up up its interim dividend, declaring an interim dividend of 170c per share, up 12c or 7.6 per cent.
JB Hi Fi shares closed on Friday at $102.45.
More to follow.
