JB Hi-Fi's first-half profit surges 21 per cent to $151.7 million

JB Hi-Fi's first-half profit surges 21 per cent to $151.7 million

Sales at JB Hi-Fi Australian stores grew on a year ago by 10.8% which was driven by the video games industry as well as computers, audio and drones.

The company, which operates in Australia and New Zealand, forecast sales of about A$6.85 billion for the full 2018 financial year, and underlying net profit between A$235 million and A$240 million, 13 to 16 percent higher than the previous underlying profit.

For HY18, JB Hi-Fi posted a 24.9% increase in EBIT - $225.8 million versus $180.8 million recorded in the same period past year.

Performance of JB's New Zealand business was less pleasing. While comparable sales rose 8.7%, total sales, earnings and gross margin deteriorated on the previous corresponding period.

JB Hi-Fi shares were sold off savagely when the ASX opened, and the stock fell 7 per cent to $26.11 by 10.30am.

JB Hi-Fi closed one of its New Zealand stores in the six months ended December 31, while opening seven new stores in Australia.

In 2016 JB Hi-Fi acquired white goods retailer The Good Guys for $870 million, which Murray said has been progressing well.

Not a great result for New Zealand, however, management will be putting most of its energies into the Australian business and integration of The Good Guys.

Its results were boosted by a healthy Christmas sales period, and its takeover of electronics rival The Good Guys.

"It was another strong result for the JB Hi-Fi business in Australia, particularly through the important November and December periods". The represents 41 per cent growth compared to the same period past year when the group posted $2.6 billion in revenue. This comprises $4.75 billion from JB Hi-Fi and $2.1 billion from The Good Guys. JB Hi-Fi came in at No. 218, and is only the third Australian retailer to boast a place.

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