Source: Reuters
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  • JB Hi-Fi (JBH) closes green on the ASX after releasing its audited financial results for the 2021 financial year
  • While the company had already flagged record annual sales in a July sales update, today’s audited report confirms a 67.4 per cent increase in profits
  • The growth was largely driven by JB Hi-Fi’s online business, which increased in sales by 78.1 per cent and contributed $1.1 billion to the company’s bottom line
  • In light of the financial results, JB Hi-Fi declares a 107-cent-per-share final dividend, fully franked, taking its total FY21 dividend to 287 cents per share
  • Shares in JB Hi-Fi close 2.5 per cent higher this afternoon at $49.53 per share

Tech retailer JB Hi-Fi (JBH) has closed green on the ASX after releasing its audited financial results for the 2021 financial year.

Shareholders largely knew what was coming after the ASX 200-lister’s latest July sales update, but confirmation of record sales and boosted profits boded well for JB Hi-Fi shares.

Full-year sales revenue grew by 12.6 per cent, from $7.9 billion over the 2020 financial year to over $8.9 billion for the 2021 financial year.

The sturdy revenue figure was driven by JB Hi-Fi’s eCommerce segment, with online sales increasing by 78.1 per cent year-on-year and contributing $1.1 billion to the company’s bottom line.

The result was a 53.8 per cent increase in earnings before interest and tax (EBIT) to $743.1 million. This underpinned a neat 67.4 per cent increase in full-year net profit after tax (NPAT), which rose from $302 million in FY20 to $506 million in FY21.

As a result of the financial results, JB Hi-Fi declared a 107-cent-per-share final dividend, fully franked. This takes the total dividend payout for the 2021 financial year to 287 cents per share.

For reference, dividends for the full 2020 financial year totalled 189 cents per share — marking a 51.9 per cent dividend increase for the FY21.

Incoming Group CEO Terry Smart said JB Hi-Fi demonstrated its ability to adapt and respond to an uncertain retail environment over the past financial year.

“The combination of our passionate and knowledgeable team members, our multichannel offer, including quality store locations and established online offerings, and our ongoing investment in our supply chain gives us confidence in the outlook for the business,” Mr Smart said.

JB Hi-Fi announced in April its longstanding CEO, Richard Murray, was leaving the company.

Today, JBH reaffirmed that everything is tracking along as per schedule, and Mr Smart will formally replace Mr Murray as Group CEO at the end of August.

FY22 so far

Despite the strong 2021 financial year, JB Hi-Fi said comparable sales growth has slowed so far over the 2022 financial year.

Citing challenges from renewed lockdowns and COVID-19 restrictions around the country, JB Hi-Fi said sales growth in Australia is down 14.9 per cent for the 2022 financial year so far compared to the same time period the year before.

The company’s New Zealand segment is still posting positive growth of 8.4 per cent.

Meanwhile, sales growth for home appliance subsidiary The Good Guys is also down 8.6 per cent.

While sales growth has slowed for FY22, all business segments are still positive against the 2020 financial year.

Still, JB Hi-Fi said given the ongoing uncertainty arising from the COVID-19 pandemic, it does not consider it appropriate to provide a sales and earnings guidance for FY22.

Shares in JB Hi-Fi closed 2.5 per cent higher this afternoon at $49.53 per share. The company has a $5.7 billion market cap.

JBH by the numbers
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