JB Hi-Fi sets record profit on Christmas and online sales

The major electronics retailer’s profit jumped 6.55 per cent to $170.6 million for the first six months to December 31.

Sales growth in communications, audio, computers, visual and accessories led to the company’s revenue lifting to nearly $4 billion, almost 4 per cent higher.

A number of closures in the sector have led to many experts dubbing business conditions as a “retail apocalypse”, but JB Hi-Fi shareholders will receive a boost when the company pay its interim dividend.

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The company announced 99 cents will be paid per share, up from 91 cents 12 months ago.

“We are pleased to deliver positive sales and strong earnings growth in the first half of FY20, with sales improving throughout the half and culminating in a strong Christmas quarter,” chief executive Richard Murray said in a note to the ASX.

“In a competitive environment we remained focused on growing sales and market share in a sustainable manner while continuing to evolve the business.”

The company has performed well in a “competitive environment”. Picture: AAP Image/Darren EnglandSource:AAP

While fewer people are buying physical copies of movies, music and games across JB’s 199 local stores, the business said is finding sales growth on the internet.

Online sales in Australia lifted 18.3 per cent to $170.8 million — representing 6.3 per cent of total sales.

CEO Richard Murray says the company will continue to grow. Picture: AAP Image/James Ross

CEO Richard Murray says the company will continue to grow. Picture: AAP Image/James RossSource:AAP

Meanwhile, whitegoods and electronics chain The Good Guys recorded comparable sales growth of 0.6 per cent for a gross profit of $237.6 million. The segment had previously struggled to lift sales figures.

Greg Richards has also announced he will retire as the company’s chairman and non-executive director on June 30.

Board member Stephen Goddard will replace him as chairman.

— with AAP


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