JB HI-FI PROFIT RISES

Written on the 15 August 2016 by Melbourne Business News

JB HI-FI PROFIT RISES JB HI-FI (ASX: JBH) has seen a big lift in profits and sales in the full year to 30 June 2016, taking shine off its former rival Dick Smith. 

The Melbourne-based electronics retailer today reported an increase of 11.5 per cent in its net profit after tax to $152.2 million, from sales of $3.95 billion, which was up 8.3 per cent from the prior corresponding period.

The company may have taken market share from Dick Smith, which fell into liquidation in early January and closed its last store on May 3 before being relaunched as an online-only retailer by Kogan.com.

During fiscal 2016, JB HI-FI opened nine new stores and closed two stores. The company is planning on opening another seven stores in fiscal 2017.

JB HI-FI CEO Richard Murray says it was a great finish to the financial year for the company, which recorded a particularly strong June driven by tax time buying.

Online sales were up 35.8 per cent in the full year and now represent 3 per cent total sales for JB HI-FI.

However, Murray believes JB HI-FI Solutions will be the key driver of future growth, a subsidiary that delivers ICT business solutions.

"JB HI-FI Solutions is a key driver of our future growth. The combination of our product and service offering, along with our extensive store distribution network, continues to resonate with our clients," says Murray.

JB HI-FI will continue its on-market share buy-back program in fiscal 2017 of 700,000 ordinary shares, at a cost of $13.2 million. The company says the buy-back is intended to offset the dilutionary impact of shares.

So far, JB HI-FI has performed well in this financial year, with July's total sales growth almost 6 per cent higher than July last year.

The JB HI-FI board will pay a dividend of 37c per share fully franked on September 9.

Read about JB HI-FI's potential takeover of The Good Guys.




Author: Melbourne Business News Connect via: Twitter

Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter