JB HI-FI POSTS STRONG PROFIT RESULT BUT MISSES MARKET EXPECTATIONS

JB HI-FI POSTS STRONG PROFIT RESULT BUT MISSES MARKET EXPECTATIONS
HOME entertainment and electronics retailer JB Hi-Fi (ASX: JBH) has boosted its full year net profit by 13.3 per cent to $172.4 million, thanks to sales of big screen televisions, smartphones and drones.

Total sales rose 42.3 per cent to $5.63 billion for the 12 months to June 30 following November's acquisition of white goods specialist The Good Guys, while underlying net profit after tax rose 36.5 per cent to $207 million.

JB Hi-Fi CEO Richard Murray (pictured) says sales are expected to rise to approximately $6.8 billion in 2018 with sales to grow another 12 per cent.

"The July sales results in both JB Hi-Fi and The Good Guys businesses are pleasing, especially in light of the strong sales growth in the prior years," Murray says.

"We are clear on our objectives for 2018 and feel we have good momentum heading into the important Christmas trading period."

The acquisition of The Good Guys boosted JB Hi-Fi's shares in the home appliances market from three per cent to 29 percent and increased it shares of the electronics stock from 19 per cent to 24 per cent.

JB Hi-Fi says sales for July are up by 8.8 per cent with a comparable store sales growth of 5.8 per cent.

The company announced a final dividend of 46 cents per share, up from 37 cents bringing it to a full year dividend payout of $1.18 per share on last year.

JBH shares were trading four per cent at $24.37 at around 3.30pm (AEST), with Citi analysts saying its NPAT of $208 million had missed market expectations.

Business News Australia

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