JB Hi-Fi profit, sales down

Shares in Australian home entertainment provider JB Hi-Fi hit a record mark on Monday, despite the company announcing its total sales and profit took hits throughout the first half of the 2024 financial year. 

JB shares closed trade on $60.58 per share, up 7 per cent, and in doing so, broke through the $60 barrier for the first time. 

Up until December 31 2023, JB Hi-Fi generated $5.2 billion in total sales, down from $5.3 billion during the previous corresponding period.

The company's overall net profit after tax also decreased, from $330 million in the first half of FY23 to $264.3 million, while gross profit of its Australian arm was $795.6 million. down by 3 per cent.

An interim dividend of 158 cents per share has also been declared, down 39 cents per share from H1 FY23. This is expected to be paid on March 8 2024. 

JB Hi-Fi Group chief executive officer Terry Smart said despite tricky trading conditions, the company remained committed to positively serving its customers. 

"We are pleased with our performance, as we cycled the elevated customer demand in the previous year," he said. 

"As expected, we saw the trading environment become more challenging, marked by heightened competitive activity and increased on-floor discounting. Our focus remains on maximising customer demand through delivering consistently high levels of customer service and driving the best value for our customers." 

Last month, JB Hi-Fi's total sales growth in Australia was 2.5 per cent, with a comparable sales growth of 1.7 per cent during the previous corresponding period. Growth at its New Zealand operation reached 8.2 per cent, with sales down 4.1 per cent on the previous corresponding period. 

Mr Smart said these figures were in accordance with the company's projected estimates. 

"In a challenging retail environment, we continue to adapt and innovate to maximise the opportunities it gives us," he said.

"Our unwavering focus on delivering value for our customers by leveraging our established and proven low-price market, along with providing exceptional customer service, continues to ensure we remain top of mind for shoppers. This strategy not only ensures our continued relevance to our loyal existing customers, but also drives the expansion of our market share."