- Retailer JB Hi-Fi (JBH) to return up to $250 million to shareholders through a share buyback after strong financial results despite supply chain issues due to COVID-19
- The company reported a net profit after tax of $287.9 million, a 9.4 per cent drop on last year’s record half year profit but in line with the guidance
- Sales dropped 1.6 per cent to $4.86 billion, however, online shopping continues to skyrocket with online sales up 62 per cent for the half year to over $1.1 billion
- Shareholders will also be receiving an interim dividend of $1.63 per share
- JBH shares up 5.38 per cent at $51.69
Electronics giant JB Hi-Fi (JBH) will return up to $250 million to shareholders through a share buyback after strong financial results despite supply chain disruptions due to COVID-19.
The retailer announced the off-market buyback with its half-year 2022 results that included a net profit after tax of $287.9 million, a 9.4 per cent drop on last year’s record half-year profit but still above market expectations and in line with guidance.
While total sales eased 1.6 per cent to $4.86 billion, sales from online shopping skyrocketed more than 62 per cent for the half year to $1.1 billion.
Notably, online makes up nearly one-quarter of JB Hi-Fi’s total revenue.
Shareholders will also be receiving an interim dividend of $1.63 per share, payable on March 11.
“We are pleased to report strong sales and earnings for HY22,” CEO Terry Smart said.
“We continued to see elevated demand across all of our sales channels, particularly online which our customers seamlessly transitioned to during the various lockdowns demonstrating the strength and trust in our brands.”
JB Hi-Fi has been less affected by supply chain disruptions of late, however, Mr Smart said there were logistics delays impacting the business through the new year.
“While it remains an uncertain retail environment, we will continue to stay
focused on what we can control,” he said.
“Our highly engaging in-store and online shopping experiences delivered by
our passionate and knowledgeable team members, and our continued focus on leveraging our scale to deliver great value will ensure we meet our customers’ needs during these challenging times.”
The company has put the indicative share price range for the buyback at between eight per cent and 14 per cent discount to the market price.
JBH shares were trading 5.38 per cent higher at $51.69 at 3:27 pm AEDT.