The electronic and home appliances retailer will also launch a $15.2 million share buyback after lifting its full year profit 6.35 per cent.
Joe Hockey’s small businesses tax cuts and Australia’s housing boom have got the cash registers in overdrive at electronics retailer JB Hi-Fi.
JB Hi-Fi has posted a net profit of $136.5 million for the 12 months to June 30, up from $128.4 million for 2013/14.
“We are pleased with our start to the financial year”, said chief executive Richard Murray.
The most recent ANZ-Roy Morgan consumer confidence survey, released weekly, showed a confidence rating of 112.9, exceeding the long-term August average of 109.9.
Online sales grew 16.9 per cent in FY15, which represented about 2.4 per cent of retailer’s total sales.
Significant sales growth across the telecommunications, fitness, accessories, computers, IT and home appliance categories had offset weaker sales of televisions, music, movies and games.
It is expected to deliver $500 million per annum in sales through organic growth and strategic acquisitions.
Morningstar analyst Farina Parsons said this was a smart move timed to capitalise on the booming housing markets in Sydney and Melbourne.
He said small home appliances like toasters and irons had been rolled out to four standard JB Hi-Fi stores with “pleasing results” and they would be in another 14 stores by November.
JB Hi-Fi has forecast sales to rise 5.5 per cent to about $3.85 billion in the 2016 financial year following a big lift in sales during the second-half of 2014/15.
JB Hi-Fi has benefited from a shift away from just audio-visual electronics, rolling out “Home” format stores to sell refrigerators, washing machines and other white goods as it seeks to grab a larger slice of Australia’s A$4.6 billion home appliances market.
In a bid to “actively manage the Company’s capital position, and taking account of continued solid earnings growth and its strong balance sheet”, JB Hi-Fi also announced this morning its intention to undertake an on-market share buy-back of up to 776,610 ordinary shares.
