Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


JB Hi-Fi's NZ sales edge up in 2014, earnings gain 35%

JB Hi-Fi's NZ sales edge up in 2014, earnings gain 35%

By Paul McBeth

Aug. 11 (BusinessDesk) - Australian discount consumer electronics chain JB Hi-Fi's New Zealand sales edged up 0.9 percent in the 2014 financial year, lagging the group's gains, though local earnings still climbed 35 percent.

New Zealand sales rose to $211.4 million in the 12 months ended June 30 from $209.4 million a year earlier, and were up 0.8 percent on a comparable sales basis, the Melbourne-based company said. That lagged the 5.3 percent increase in group sales to A$3.48 billion for a 10 percent increase in net profit to A$128.4 million, or A$1.284 per share.

Still, the New Zealand unit boosted earnings before interest and tax 35 percent to $3.1 million, fattening its Ebit margin by 37 basis points to 1.5 percent, "as we continue to build the JB Hi-Fi brand" and widening the gross margin 33 basis points to 18 percent by lifting market share, it said in a statement to the ASX.

In recent years New Zealand's consumer electronics market has been characterised by tight competition and cheap imports driving down prices. Goverment data shows consumer prices for telecommunication equipment fell 25 percent in the year ended June 30, while audio visual equipment prices were down 9.8 percent. Separate retail trade figures show the value of consumer spending on electrical and electronic goods rose 7.6 percent to $634 million in the March quarter, while the volume of goods sold climbed 16 percent.

JB Hi-Fi is still building its presence in New Zealand with 13 stores as at June 30, and plans to open another two in the 2015 financial year. That compares to 61 stores from Australasia's biggest electronic goods retailer, Dick Smith Holdings. JB Hi-Fi's New Zealand Ebit margin is skinnier than its 5.5 percent group margin and the 4.7 percent margin Dick Smith's local network was operating in during the six months ended Dec. 31.

Group chief executive Richard Murray said overall July sales were impacted by a decline in tablet sales, though gross margins were wider than a year earlier.

JB Hi-Fi anticipates annual sales of A$3.6 billion in the 2015 financial year, with eight new stores set to open, and 26 existing outlets to be converted to JB Hi-Fi Home stores.

The board declared a total dividend of 84 Australian cents per share, payable on Sept. 5, and up from 72 cents a year earlier. The company also plans to undertake an on-market share buyback of up to 645,765 shares at a cash cost of about A$12.5 million.

The ASX-listed shares fell 1.8 percent to A$19.37 on Friday, and have shed 9.9 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news