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JB Hi-Fi (ASX:JBH) share price in focus on huge FY22 dividend

The JB Hi-Fi Limited (ASX: JBH) share price is in focus after the electronics and appliance retailer revealed another strong result in FY22.

JB Hi-Fi FY22 highlights

There has been a lot of demand for electronics and appliances since the start of the COVID-19 pandemic. That seemed to continue in FY22 with the following financial highlights:

  • Total sales increased 3.5% to $9.23 billion
  • Online sales growth of 52.8% to $1.63 billion, being 17.6% of total sales
  • EBIT (EBIT explained) rose by 6.9% to $794.6 million
  • Net profit after tax (NPAT) rose 7.7% to $544.9 million
  • Earnings per share (EPS) increased 8.8% to $4.80
  • Final dividend up a whopping 43% to $1.53 per share
  • Total dividend for FY22 up 10.1% to $3.16

The company pointed out that it has continued to invest in its multichannel strategy across online and its supply chain, including upgrades to its websites and distribution centres and expanded customer delivery options. In the second half, when all stores were open (and there were no lockdowns), online sales represented 11.9% of total sales.

FY23 trading update

Strong sales growth has continued into July, though this is comparing to July 2021 when there were lockdowns in some of Australia’s major cities.

In July 2022, compared to July 2021, JB Hi-Fi Australia total sales increased 9.7%, JB Hi-Fi New Zealand total sales were down 0.9% and The Good Guys total sales grew by 7.8%.

Management comments

The JB Hi-Fi CEO Terry Smart said:

As we enter an increasingly uncertain retail environment and household budgets come under further pressure, customers will gravitate to trusted value-driven retailers. Our ongoing strategy of providing customers with the best value and outstanding service every day, will ensure our brands to deliver for our customers and remain a destination of choice into the future.

Mr Smart also thanked JB Hi-Fi’s more than 13,000 team members for their ability to adapt and respond to meet customers’ needs.

Final thoughts on the JB Hi-Fi share price

I thought this was another impressive performance for the ASX retail share. The huge dividend is likely to go down well with shareholders.

I believe that JB Hi-Fi is more defensive that people give it credit for. I’d say most people view their phones, and perhaps computers, as important purchases that they will keep making even in a downturn.

However, once JB Hi-Fi is no longer competing against locked down months, I’m not sure if it will keep showing growth. It could be hard for JB Hi-Fi to achieve growth in FY23.

But, I think it has done well over the last decade and should be counted as one of the pretty good ASX dividend shares.

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At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
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