STRUGGLING NZ ARM WILL BE "AN ONGOING FOCUS" FOR JB HI-FI

By Wares February 13, 2017 Industry news

JB Hi-Fi's first half report for FY2017 shows the NZ arm struggling with both its top and its bottom lines.

JB Hi-Fi's half year result for the 6 months to 31 December (H1 FY2017) was positive overall but the devil was in the detail, especially when it comes to the performance of the New Zealand arm.

Total group sales for the first half of AU$2.6 billion showed healthy growth (+23.6%) with a good bottom line to boot, with an NPAT of AU$110.4 million (+16%).

Taking the costs associated with the purchase of The Good Guys out of the equation, underlying group net profit was AU$125.4 million, which represents an even healthier boost at +31.7%.

However, the New Zealand figures below provide justification for the firm stating quite plainly this morning that its performance in NZ would be “an ongoing focus”…

                                  H1 FY2016     H1FY2017

Total ANZ (incl The Good Guys)

Sales (AU$m)            2,116.8            2,616.2            +23.6%

EBITDA                     157.9              203.9               +29.1%

Australia

Sales (AU$m)            2,000.9            2,234.2            +11.7%

EBITDA                     154.6              185.3               +19.8%

New Zealand

Sales (NZ$m)            127.3              125.1               –1.7%

EBITDA                     3.5                 2.6                   –25.7%

 The Good Guys       26 Nov-31 Dec 2016

Sales (AU$m)             263.1

EBITDA                     15.2

 

NZ comp sales also fell significantly (–11.2%) while the Australians fared much better (+8.7%).

To put this result into context, the NZ arm ended the year to June 2016 with sales +11.2% , comps +4.4% and Gross Profit +13%, but its EBIT fell by 60%.

Look at the FY2016 result here.

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