The JB Hi-Fi Limited (ASX: JBH) share price is under the spotlight after revealing a strong first half of FY23.
JB Hi-Fi is a leading electronics retailer of things like phones, computers, TVs, fridges and so on.
Strong HY23 result
The ASX 200 (ASX: XJO) share told investors about its sales result for the second quarter.
JB Hi-Fi Australia sales increased by a total of 5.6%, JB Hi-Fi New Zealand sales went up by 9.8% and The Good Guys sales improved by 3.3%.
With the conclusion of the second quarter, the business was able to report some numbers on how the first half of the 2023 financial year has gone compared to the first half of FY22.
- Sales increased by 8.6% to $5.28 billion
- EBIT (EBIT explained) grew by 14% to $479.2 million
- Net profit after tax (NPAT) grew by 14.6% to $329.9 million
The company explained that sales growth was “strong” throughout the half, driven by continued “elevated customer demand for consumer electronics and home appliances, and well-executed Black Friday and Boxing Day promotional periods.”
JB Hi-Fi revealed that online sales were $752.1 million, representing 14.2% of total sales.
The business was able to achieve profit margin improvement, which is why profit rose faster than sales.
Management comments
The JB Hi-Fi CEO Terry Smart said:
We are pleased to report record sales and earnings for HY23 as trading conditions started to normalise following two years of Covid related disruptions. Our relentless focus on providing the best value and high levels of customer service every day, both in store and online, continues to resonate with our customers.
As always, a key part of our continued success is our over 13,000 team members and their passion and dedication to looking after our customers’ needs. I would again like to thank them for delivering this outstanding result.
Final thoughts on the JB Hi-Fi share price
It’s not surprising to see that investors have pushed up the shares in response to the numbers. I think it’s one of the best retailers on the ASX and worth owning for good dividend income. I believe it’s going to be more defensive than some investors think, so share price weakness could be an attractive opportunity.
But, it’s actually up over the past 12 months, so I’d wait for a better priceto invest.
