JB Hi-Fi profit rises with EOFY sales surge

Electronics, electrical and home appliances retail group JB Hi-Fi (ASX: JBH) has reported a 7.7 per cent profit lift to $544.9 million for FY22, with The Good Guys contributing the largest share of earnings growth.

The result is a far cry from the 67 per cent profit increase reported in FY21, but is still considerable given large segments of the population were in lockdown for the first few months of the 2022 financial year and the majority of the group's sales are in-store.

It was certainly a tale of two halves for the Melbourne-headquartered group, with sales up significantly in the fourth quarter versus the yearly total. JB Hi-Fi Australia, which accounts for more than two-thirds of the group's $9.2 billion in revenue, saw 4 per cent sales growth for the year but this figure hit 11.6 per cent in the last quarter.

It was a similar story at JB Hi-Fi New Zealand with 7.7 per cent growth in the quarter compared to 0.3 per cent for the year, and The Good Guys with a 7.8 per cent quarterly sales rise versus 2.7 per cent on an annual basis. 

The New Zealand business however managed to record a 51.7 per cent jump in profit, albeit off a low base to $8.8 million, while The Good Guys accounted for an extra $26.7 million in profit growth. The JB Hi-Fi Australian division was not far off that, bringing in an extra $21 million in profit.

The unaudited results released today show online sales were up 52.8 per cent at $1.6 billion, translating to around $500 million in the June half which is understandably less given the December half's concentration of seasonal sale events and the e-commerce shift that occurs during lockdowns.

"We are pleased to report record sales and earnings for FY22," says group CEO Terry Smart.

"The benefits of having a strong multichannel strategy were especially evident in the second half as Covid-19 restrictions eased and customers returned to shopping in-store, whilst continuing to shop with us online.

"It is a credit to our over 13,000 team members who continue to remain focused on providing outstanding customer service and worked tirelessly to deliver this record result."

Shares in JBH are up 3.40 per cent to $42.27 per share at 10.58am AEST.