JB Hi-Fi reaches $2bn revenue mark for 2016 half-year results
Consumer electronics retailer, JB Hi-Fi (JBH), has reported a revenue of $2.12 billion for its 2016 half-year results ending December 31, 2015. In a statement on the ASX, the company said its net profit after tax (NPAT) comes up to $95.2 million for the period, up from $88.5 million from the same time last year.
The company also achieved an increased gross profit of 7.6 per cent, but its gross margin was down to 21.7 per cent. It also mentioned that its cost of doing business was 14.3 per cent, resulting in an EBIT of $138.2 million and an EBIT margin of 6.5 per cent.
“This was a solid result with trading in the important November and December periods, particularly strong as we executed on a great promotional plan,” JB Hi-Fi CEO, Richard Murray, said.
Its online sales was up 28.9 per cent in the first half of 2016, representing about three per cent of all sales. The number of unique visitors to its website during the 12 months to December 31, 2015 averaged at 1.3 million per week.
Murray said HB Hi-Fi Solutions remains on track to deliver on its longer term aspirational sales target of about $500 million per annum, through both organic growth and strategic acquisitions. He said all departments achieved “solid growth” for the period.
“JB Hi-Fi Solutions is a key driver of our future growth. We continue with our aggressive recruitment plan as we expand our product and service offer,” he added.
The board also declared an interim dividend of $0.63 per share, fully franked, up $0.04 per share on the prior year. The interim dividend will be paid on March 4 and the record date for determining the entitlement will be February 19.
“The board believes that the company’s dividend payout ratio of 65 per cent appropriately balances the distribution of profit to shareholders and the reinvestment of earnings for future growth.”
During the 2016 half year period, the company completed an on-market buy-back of 0.7 million ordinary shares, at a cost of $13.2 million, to offset the dilutionary impact of shares expected to be issued to employees under the company’s share option plans in FY16.
It also opened seven new stores across the country and it expects to open a total of eight new stores in FY16.
Murray also said the market is expected to remain competitive as retailers cycle a strong second half in FY16. In FY16, the company expects total sales to be circa $3.9 billion and NPAT to be in the range of $143 million to $147 million.
“We continue with a strong investment program, including the rollout of JB Hi-Fi Home, the introduction of small appliances to existing stores, and upgrades to a number of our stores. This will position us well as we cycle a strong second half in the prior year,” he added.
