Today, JB Hi-Fi Limited (ASX: JBH) revealed its financial results for the half year to 31 December 2017.
JB Hi-Fi is one of the country’s largest retailers, offering electronics, household appliances, games and accessories. The company also recently acquired The Good Guys, which offers a similar range of products.
The results below are comparing against the half year to 31 December 2016, some of the prior corresponding period’s results were ‘underlying’ which excludes The Good Guys acquisition costs. Here are some of the main points:
- Total sales increased by 41% to almost $3.7 billion
- Day to day profit, or EBITDA, rose by 39.5% to $256.3 million (what the heck does EBITDA mean?)
- Net profit increased 21% to $225.8 million
- Dividend per share, up 19.4% to 86 cents
- Net debt improved to $191.5 million from $486 million at 30 June 2017
JB Hi-Fi CEO Richard Murray said “It was pleasing to see sales growth in The Good Guys throughout the half whilst we continued to take a considered and deliberate approach to change. Having owned The Good Guys for over 12 months we are now starting to realise the benefits of the scale of the combined group and remain excited by the opportunity to grow one of Australia’s leading retail brands.”
The company said that it had a total of 311 stores across Australia and New Zealand at 31 December 2017. During the six months, the company opened seven new stores in Australia and closed one in New Zealand. Two The Good Guys stores were also opened in the half year.
Management said that in January total sales for JB Hi-Fi had grown by 6.9% with same-store sales growth of 4.5%. The Good Guys sales growth for January was -3.5% with same-store sales declining by 4.7%. Management attributed this drop due to seasonal sales being strong last year.
In the second half of the year management expect sales growth to exceed profit growth, meaning lower margins. Management predict that net profit will grow between 13.1% to 15.5% for the whole year.
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