JB Hi-Fi cracks half a billion in profits

Retailer JB Hi-Fi (ASX: JBH) has hit a milestone in FY21, recording more than $500 million in net profit after tax (NPAT) on the back of heightened demand for consumer electronics and home appliance products.

The winds of change brought about by pandemic restrictions continued to play into the hands of the national retailer, with the company witnessing nearly a doubling of online sales in FY21, with e-commerce now contributing 13.1 per cent to total sales.

Incoming group CEO Terry Smart thanked the company's employees, many of whom continued to work during COVID-19 lockdowns.

"Our continued focus on the customer, combined with the strength and competitive advantage of our multichannel offer, be it in-store, online or over the phone, has enabled us to seamlessly meet our customers' increased demand," Smart said.

Total sales in FY21 were up 12.6 per cent to $8.9 billion, while NPAT rose by 67.4 per cent to hit $506.1 million.

Online sales grew by 93 per cent to $780 million, as customers flocked to acquire products in the key growth categories of communications, computers, games hardware, visual and small appliances.

JB Hi-Fi subsidiary The Good Guys also saw growth during the period, with total sales up 13.7 per cent to $2.72 billion.

Growth for the business was buoyed by demand for home appliance and consumer electronics products, with key growth categories being refrigeration, laundry, floor care, portable appliances and visual.

Despite FY21's stellar growth, the company remains concerned about the ongoing impact of COVID-19 and associated restrictions.

As such, the company has not provided FY22 sales and earnings guidance.

"While it remains an uncertain retail environment, we have continued to demonstrate our ability to adapt and respond," Smart said.

"The combination of our passionate and knowledgable team members, our multichannel offer, including quality store locations and established online offerings, and our ongoing investment in our supply chain gives us confidence in the outlook for the business."

Shares in JBH are down 0.89 per cent to $47.89 per share at 10.10am AEST.