JB Hi-Fi has pulled off a monster revenue growth of $500 million for the first half of the 2017 financial year in the wake of its acquisition of The Good Guys.
Revenue was up by 23.6 percent to reach $2.6 billion for the six-month period ending 31 December 2016. Net profit was also up 31.7 percent to hit $125.4 million.
The revenue boost was in no small part due to the acquisition of The Good Guys late last year, which contributed $263 million during the half-year.
JB Hi-Fi announced it would acquire the whitegoods retailer in September last year for $870 million, adding 101 new stores to the electronic retailer's existing network. The combined company now has a footprint of 286 stores in Australia, and 16 stores in New Zealand.
Group chief executive Richard Murray said it had been a "particularly strong" 12 months for JB Hi-Fi, as the broader retail market was generally shaky.
Murray reiterated that the demise of retail competitor Dick Smith last year helped JB's sales in the computer, visual, audio and accessories markets.
"As we have previously highlighted, the closure of DSE during the second half of FY16 has contributed to an increase in JB Hi-Fi sales in the first half of FY17. However, the impact will moderate as we cycle through their decline and eventual market exit," he said.
The retailer's communications, audio, cameras, accessories, computers and home appliances sales all grew, while software continued to decline by 9.4 percent.
The company has forecast full-year sales of $5.58 billion, with $4.33 billion coming from JB Hi-Fi and $1.25 billion from The Good Guys. Last financial year, JB Hi-Fi cracked $3.95 billion in sales.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
