JB Hi-Fi sales up by $59M

Mass merchant electronics retailer, JB Hi-Fi has reported a net profit for the first half of the 2008/09 financial year of $59.04 million, up 40.8 per cent on the prior corresponding period.

Revenue for the six months to December 31, 2008, rose 27.6 per cent to $1.26 billion.

The company also declared an interim dividend of 15 cents per share, up from 10 cents in the prior corresponding period.

Comparable store growth for the period was 11.1 percent, and margins remained stable at 21.4 percent.

Richard Murray, chief financial officer at JB Hi-Fi told CRN that the retailer's costs also fell to 13.42 percent, from 14.33 percent.

"The strength of JB lies in the fact that it sells broad-based products," he said.

 "However computers, telco and gaming products are very popular with customers.

 "We keep our prices low and customers are more inclined to shop around for deals."

 Murray said the retailer's strength lies in the ability to keep the cost of the business low.

 "It's ingrained into our philosophy, because we don't want to pass costs onto customers," he claimed.

 "We only keep one PA and all the executives do their own administration.

"It's not about cutting costs, just making sure we leverage what we have, after all we don't need new accountants."

According to Murray, the retailer has been "keeping its head down and tail up" and getting on with what it does.

In a statement to the ASX, Richard Uechtritz said the company has opened 14 new stores and plans to open another seven in the second half of financial year 2009.

This will bring the total number of new stores for the year to 21, which will take the total number of JB stores to 101 in A/NZ - with a target of 150 stores in total.

The retailer expects to open 13-15 stores per year, over the next four-five years.

"Sales in January and February to date have met internal expectation," stated Uechtritz.

"Whilst the retail outlook is less certain than previous reporting dates the company is cautiously optimistic that it will have another strong year and confirms its previous guidance that sales will be $2.35 billion or a 28 percent increase  on the prior financial year.