NZ ARM OF JB HI-FI MAKES MORE PROGRESS IN H1

By Wares February 11, 2019 Industry news

Reasonable overall first half gains include encouraging progress for New Zealand and The Good Guys.

JB Hi-Fi this morning released its Trading Performance for the first half of FY19 (H1, to end December 2018), with good news coming from its New Zealand arm and progress from the Good Guys.

The overall NPAT was +5.5% at AU$160.1 million from AU$3.8 billion of sales (+4.2%) with the group EBIT +4.8% to AU$236.6 million.

Many other Australian retailers would be pleased to see this sort of result.

 

New Zealand - "encouraging"

Following the progress already shown in Q1, NZ sales were +5.8% to NZ$131.8 million, with comparable sales +12.6% and an EBIT of NZ$1.1 million.

Gross Margin was flat at 17.5%.

NZ online sales were +65.4% to NZ$7.9 million or 6% of total sales.

Group CEO, Richard Murray, says of the progress in New Zealand: “We are encouraged by the improved performance in New Zealand, particularly the strong comparable sales growth which is evidence that our offer is resonating with customers.

"We continue to reposition the business which has included the closure of a loss-making store in July and in October the appointment of a local Managing Director, Cherie Kerrison." 

In the January 2019 month, New Zealand sales fell by 1.8% (slightly less than in January 2018) but comparables were +4.1% (again better than January 2018).

The company outlook for the full year is for NZ sales to grow to NZ$240 million (+3.7% on the previous year). 

  

Australia - CODB a key advantage

Total Australian sales were +4.7% to AU$2.59 billion, with comparables +3%.

Overall Gross Profit was +5.2% to AU$573.6 million with a Gross Margin of 22.1%. 

Australia's EBIT was +4.5% to AU$191.9 million but the EBIT margin was flat at 7.4%.

Online sales were +21% to $144.4 million or 5.6% of total sales, while the Solutions business recorded double-digit sales growth and looks set to achieve sales of some AU$500 million per annum.

In the January 2019 month, sales were +3% (less than half the growth shown in the previous year) with comparables +1.5% (ditto).

 

The Good Guys - "significant improvement"

Total sales were +2.8% to AU$1.13 billion, with comparables +1.5%.

The Good Guys' GP was AU$233.2 million with a GM of 20.6%, "a significant improvement from the performance in the second half of FY18" says the company.

Online sales on The Good Guys website "grew strongly", however "a decline in third-party marketplace sales" resulted in HY19 online sales falling 2.4% at AU$70.7 million or 6.3% of total sales.

In the January 2019 month, sales were +1.8% and comps +0.3%, both figures substantially up on the same period in the previous year.

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