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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news