JB Hi-Fi Limited (JBH) has reported a 28.8% jump in profit to $76 million for the six to 31 December, 2009 – a record for the company. The result came on the back of increased revenue to $1.55 billion in sales for the six months, with comparable sales growth climbing a tick under 10% from the previous corresponding period.
Since Christmas JB Hi-Fi said sales had grown at 7.2% prompting the company to reaffirm its guidance and say it was ‘cautiously optimistic’ the company would have another strong year.
“JB confirms its previous guidance that sales will be circa $2.8 billion or a 20% increase on the prior financial year, and expects Net Profit after Tax to be in the range of $117 million to $120 million or a 24% to 27% increase on the prior year,” the company said.
Commenting on the results to 31 December, CEO Richard Uechtritz said he was pleased with the sales result, particularly in December, with comparable store sales up 6.5%.
“JB has proven to be very resilient throughout the economic downturn which led to low consumer confidence and spend," Mr Uechtritz said.
"This performance is testament to our strong retail model and the depth and strength of our management team.”
Mr Uechtritz said the company would continue to grow as it opened new stores.
“We continue to grow our market share as recently opened stores mature, we open new stores, expand our offering and reduce our prices on the back of increased economies of scale and a continued focus on costs,” Mr Mr Uechtritz added.
Chairman Patrick Elliott announced the resignation of Mr Uechtritz, who will retire in July after 10 years with the company. Mr Elliot said the current COO Terry Smart would succeed Mr Uechtritz upon his retirement.
The company said it has 134 stores in Australia and New Zealand with 15 new stores opened in the last six months.
JB Hi-Fi said in the second half of the financial year it planned to open up another seven stores.
Meanwhile, the strong result has prompted the board to increase the interim dividend to 33c per share, a 120% jump from the previous year and in line with the company’s stated payout ratio goal of 60%.
JB Hi-Fi has been trading around record levels for the stock for much of 2009, just months after emerging from the GFC.
At the close of business Friday, JB Hi-Fi shares were $20.10.
