JB Hi-Fi’s net profit soared 67.4 per cent to $506.1 million in the 12 months ending June, but the new financial year has started on a softer note, with same-store sales falling in Australia in July and August as the group lapped elevated demand this time last year.
The net profit result was in line with consensus forecasts and the consumer electronics and appliance retailer’s guidance in July.
Group sales rose 12.6 per cent to $8.92 billion – taking average annual growth over the last five years to 18 per cent – as consumers switched from setting up their home offices during the initial phase of the pandemic to keeping themselves entertained at home during subsequent lockdowns.
JB Hi-Fi’s eighth consecutive year of record profit was underpinned by fatter gross margins, with strong demand for high-margin appliances and consumer electronics enabling JB Hi-Fi to cut back on discounting and keep costs under control.
Earnings before interest and tax rose 53.8 per cent to $743.1 million – taking average annual growth over five years to 27 per cent – as gross margins rose 27 basis points to 22.25 per cent and cost of doing business fell 91 basis points to 11.2 per cent of sales.