JB Hi-Fi soars as FY results beat estimates
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More news: Shares in JB Hi-Fi surged at market open on the ASX after the consumer electronics retailer exceeded expectations for its full-year earnings.
Shares were up 9.5% to $73.76 by 10:40am AEST.
Jarden analysts said they would expect consensus upgrades to reflect JB Hi-Fi's "stronger trading update", with "trading momentum better than expected". They noted that full-year EBIT was 3% ahead of market expectations, while second-half EBIT outperformed by 8%.
What they said: "Overall, another quality result and will likely support the share price, with ongoing market share gains and margin control," Jarden analysts said.
JB Hi-Fi full year profit drops as it buys e&s Trading
The news: Consumer electronics giant JB Hi-Fi has posted a dip in full-year profit despite flat sales and announced it will buy a majority stake in white goods retailer e&s Trading.
The numbers: Net profit for the year to 30 June was down 16.4% to $438.8 million but came in ahead of analyst expectations of $423.1 million.
Total revenue for the year dipped 0.4% to $9.59 billion. The company will pay a lower final dividend of $1.03 per share, down from $1.15 a year ago but will boost this with a special dividend of 80 cents per share.
The context: JB Hi-Fi said total sales at its flagship Australian stores rose 1.0% to $6.61 billion, driven by continued customer demand for technology and consumer electronics products, and supported by well-executed promotional periods.
However, earnings slid 11% due to the sales mix and increased levels of on-floor discounting. Sales also jumped 12% at its New Zealand stores although earnings were negative. The main drag on the results was appliance chain The Good Guys, where sales fell 4.8% while earnings slid nearly 26% amid higher discounting and inflationary pressures.
JB Hi-Fi will acquire an initial 75% stake in premium kitchen, laundry and bathroom products retailer e&s Trading for $47.8 million, with a put-and-call option arrangement in place for the acquisition of the remaining 25% in September 2029.
What they said: JB Hi-Fi chief executive Terry Smart said: “e&s have a highly complementary premium product offering, which will appeal to a new customer base, and a commercial construction market focus, making it a strategically compelling addition to the group".
The sources: ASX announcement, ASX announcement
