JB Hi-Fi reports record profits, sales in FY19

JB Hi-Fi has seen record profit and sales for the 2019 financial year, leveraging strong communications, fitness and games hardware sales to deliver growth across all channels of the business.

Net profit for the year grew 7.1 percent to $249.8 million, compared to the $233.2 million seen last year, while total group sales grew 3.5 percent to $7.1 billion – up from $6.9 billion in FY18.

JB Hi-Fi Group chief executive Richard Murray said the group was pleased with the result, and that the success of the JB Hi-Fi brand during a difficult second half in Australia proves it has the right business model.

“It was a solid result for JB Hi-Fi Australia, and a particularly pleasing finish for FY19 with strong sales in the key tax time promotional period,” Murray said.

Comparable sales grew 2.8 percent, while total sales grew 4.1 percent to $4.73 billion – driven by communications, audio, fitness, games hardware and connected technology.

However, the company’s media segment underperformed. Sales in the category fell 7.3 percent compared to FY18, with a double-digit decrease in movies and music sales offset by strong growth in the gaming software segment.

Murray noted during an investor call that while store roll-outs had slowed, physical locations remain key to its growth, even as it expands the online channel, which grew 23 percent in FY19 and now makes up 5.5 percent of total sales.

The New Zealand business also saw strong growth online, with 38.3 percent growth in online sales to NZ$13.3 million, or 5.6 percent of total sales. Comparable sales grew 8.2 percent, while total sales grew 2 percent to NZ$236.2 million.

According to Murray, this result is evidence that JB Hi-Fi’s offer is resonating with New Zealand customers, and proves that hiring New Zealand managing director Cherie Kerrison to lead the international business was the right call.