JB Hi-Fi bumps dividend by 43% on record profits and unwavering sales momentum
Consumer demand for electronics and home appliances is showing no signs of slowing
Source: iStock
Mentioned
KEY POINTS
- JB Hi-Fi pre-released unaudited FY22 results on 19 July
- On the finer details, online sales were heavily skewed to the first-half and costs remain low
- JB Hi-Fi said sales between 1 June and 31 July were up 9.7%
JB Hi-Fi (ASX: JBH) has delivered a stellar full-year result as consumer demand for electronics and home appliances is showing no signs of slowing.
Results at a glance:
Full year | 2022 | 2021 | Change $ |
|---|---|---|---|
Sales ($m) | 9,232 | 8,916 | 3.5 |
Online sales ($m) | 1,630 | 1,100 | 52.8 |
Online sales as a % of group sales | 17.6 | 12.3 | 43 |
Net profit after tax ($m) | 554.9 | 506.1 | 7.7 |
Final dividend (cps) | 153 | 107 | 43 |
Source: JB Hi-Fi | Table: Market Index
Unsurprisingly positive
The company pre-released its unaudited FY22 earnings on 19 July, so the revenue and profit figures should come as no surprise.
This might explain the rather muted open, with JB Hi-Fi shares up just 0.6% as the market opened.
On the finer details:
Sales momentum was supported by 'key growth categories' including communications, visual, small appliances, smart home and accessories
Online sales was heavily skewed towards the first-half when omicron restrictions were in place. Online sales fell to 11.9% in the second half compared to 17.6% for the full year
Cost of doing business was 11.4%, up from 11.2% a year ago.
"The business’ low CODB remains a competitive advantage and is maintained through a continued focus on productivity, minimising unnecessary expenditure and leveraging scale," the company said in a statement
All about shareholder return
JB Hi-Fi declared a final dividend of 153 cents per share fully franked, up 43% compared to a year ago.
Based on Monday's open of $45.85, the dividend translates to a yield of 3.34%.
JB Hi-Fi shares will go ex-dividend on Thursday, 25 August.
Through the total dividend for FY22 and a $250m share buy-back, JB Hi-Fi will have returned $604m to shareholders. To add some perspective, the company currently has a market cap of around $5bn.
Still going strong
Sales for the period 1 June 2022 to 31 July 2022 has continued to grow against all the doom and gloom.
For the above period, sales growth for JB Hi-Fi Australia was 9.7% compared to -12.4% a year ago.
“As we enter an increasingly uncertain retail environment and household budgets come under further pressure, customers will gravitate to trusted value-driven retailers," said CEO Terry Smart.
"Our ongoing strategy of providing customers with the best value and outstanding service every day, will ensure our brands continue to deliver for our customers and remain a destination of choice into the future," he added.
JB Hi-Fi share price chart
