JB Hi-Fi commercial biz posts 'solid' sales growth, plans expansion

JB Hi-Fi has reported a strong FY2021 first half in what the company called an “extraordinary period”, with its managed services business also benefiting.

The retail giant didn’t go into specifics on JB Hi-Fi Solutions, its IT and telco services division, but said the business recorded “solid” sales growth during the period as it expanded its product and service offerings during the period.

JB Hi-Fi also said it will continue expanding and extending the service offerings on an ongoing basis.

For the overall business, JB Hi-Fi enjoyed sizable growth in the six months ended 31 December 2021 on the back of strong demand for consumer electronics and home appliance products.

Revenue for the period was $4.9 billion, up 23.7 percent year over year, while net profit after tax is $317.7 million, up 86.2 percent year over year. Earnings before interest and tax (EBIT) is also up 76 percent to $462.8 million.

Online revenue also increased its share of overall revenue, posting a 161 percent increase to $678.8 million.

“We are pleased to report record sales and earnings for HY21, in what has been an extraordinary period. Our continued focus on the customer, and investments in our online business and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both in-store and online,” chief executive Richard Murray said.

“I would like to thank our over 13,000 team members who have continued to do an incredible job and worked tirelessly throughout this period. As I have said before, our team members are our number one asset and our most important competitive advantage; their dedication and deep product knowledge continues to delight our customers every day.”

In its Australian business, JB Hi-Fi said its strongest categories for the period were its communications, computers, visual, games hardware and small appliances. Online revenue also had a larger share in Australia at 15.4 percent of total revenue, or $515.6 million, which itself is up 201.9 percent year over year.

The company also continued investing in its online and digital offerings, including upgrades to its websites. Further investments into supply chain operations have also scaled and JB Hi-Fi said it helped maintain a high level of customer service and on-time delivery during a period of significantly increased volume.

Looking ahead, JB Hi-Fi said it “does not currently consider it appropriate” to provide FY21 sales and earnings guidance despite the strong first half, citing the uncertainties arising from COVID-19.