JB HI-FI Limited (ASX: JBH) stock edges low despite confirming $6.9 billion sales in FY18

JB HI-FI Limited – Kalkine Media

Electronic retailer JB HI-FI, (ASX:JBH) operating across New Zealand and Australia, reported 21.8% growth in sales over the last 12 months to $6.9 billion. Of this $6.9 billion, JB HI-FI Australia contributed $4.5 billion, JB HI-FI New Zealand contributed $234 million which is 1.1% less than its previous year contribution and The Good Guys contributed $2.1 billion. In FY18, group’s earnings increased by 14.5% to $350.6 million which includes a significant growth from its recently acquired white goods retailer The Good Guys.

JB HI FI started its eight new stores in Australia over the last year, while it repositioned the New Zealand business by shutting down two stores and exiting whitegoods in line with the strategy to improvise their consumer electronics and entertainment products performance.

In FY18 full year results announcement made earlier this day as at 13 August 2018, the group posted a net profit after tax of $233.2 million, up by 12.3% from prior year. In comparison to 9.1% growth in JB HI-FI Australia’s gross profit, The New Zealand business reported 3.8% decline in gross profit earned during fiscal year 2018. However, following the launch of new website, the online sales in New Zealand for FY18 edged up by 96.3% to $9.6 million which accounts to only 4.1% of total sales.

In last 12 months, JB HI-FI evolved in new product categories which include drones, homes security and Telco, while computers, audio and games hardware were among some of its strongest products range.

The group declared fully franked final dividend of 46 cents per security in addition to interim dividend of 86 cents per security paid in February 2018.

In FY19 guidance, the company expects group’s sales to be approximately $7.1 billion with 5 new JB HI-FI stores in Australia and 2 new The Good Guys stores. The group is also expected to shut down one JB HI-FI New Zealand store in FY19.

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Following the FY18 results announcement, THE company announced the appointment of Cameron Trainor, Managing Director of JB HI-FI business, to the newly created position of Managing Director Group Merchandise.

Despite reporting 14.5% growth in FY18 earnings, JB HI-FI stock slipped by 0.49% to $23.355 on 13 August 2018 (3:55 PM AEST).

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