JB Hi-Fi posts record sales and earnings for H1 despite NZ sales decline

JB Hi-Fi has reported record sales and earnings results for the first half of 2015, clocking a 23.6% increase in revenue which hit $2.6 billion.

Net profit for the retailer, which completed its acquisition of The Good Guys late last year, was up 16.0% to $110.4 million. The acquisition of The Good Guys was a big contributor to the company's improved results, contributing $263.1 million in December.

Richard Murray, JB Hi-Fi group chief executive, says it has been a 'particularly strong 12 months' for the retailer in Australia.

But while the news for the company was good in Australia, total sales in New Zealand were down 1.7% to NZ$125.1 million, with comparable sales down 11.2%. Excluding the sales impact of third party prepaid content cards – which amounted to NZ$8.4 million – total sales growth in New Zealand was up 5.2% with comparable sales down 4.9%.

In a note of caution for the New Zealand market, JB Hi-Fi stated that 'the overall performance in New Zealand is an ongoing focus for the management team'.

In Australia, total sales were up 11.7% to AU$2.2 billion, with comparable sales up 8.7%, aided by growth across communications, audio, cameras, accessories, computers and home appliances.

Online sales were up 40.4% to $84.8 million and now account for 3.8% of all sales.

The retailer says its JB Hi-Fi Solutions business continued to grow and remains on track to deliver on its longer term aspirational sales target of approximately $500 million per annum, though both organic growth and strategic acquisitions.

JB Hi-Fi is forecasting FY17 total group sales to be around AU$5.58 billion, comprised of $4.33 billion from JB Hi-Fi and $1.25 billion from The Good Guys.

"Having successfully completed our acquisition of The Good Guys, the group is well positioned to build on its solid momentum into the second half," Murray says.