JB Hi-Fi profits hit $302 million, boosted by people working from home

The much-loved tech retailer has just enjoyed a “record” year of profits – and it’s all thanks to these products Aussies couldn’t get enough of.

JB Hi-Fi Limited has enjoyed a bumper year in which net profit jumped by a staggering 21 per cent to $302.3 million as a direct result of the COVID-19 pandemic.

With countless Australians across the country working from home during the public health crisis, the electronics retailer experienced a massive spike in sales of certain products such as laptops, monitors and headphones.

Meanwhile, the unprecedented coronavirus lockdown also drove up sales for home appliances like coffee machines and air purifiers as Aussies spent more time at home than ever before.

It’s a stark contrast to other retailers across different categories which have been decimated by the virus and subsequent economic fallout.

Across the group – which includes The Good Guys and JB Hi-Fi chains – sales were up by 11.6 per cent to $7.9 billion, with “Australian sales accelerating from March as customers spent more time working, learning and seeking entertainment at home,” the company said in a results presentation released on Monday.

However, New Zealand sales were impacted by the temporary closure of stores for around seven weeks from March through to April as a result of the country’s hard lockdown.

Total online sales across the group grew by 48.8 per cent to $597.5 million, representing 7.5 per cent of total sales, with Q4 sales up 134.3 per cent.

RELATED: Follow our live coronavirus coverage

The Good Guys has also fared well during the lockdowns. Picture: Google Maps

RELATED: Victoria’s lockdown rules explained

“This is a strong result in the most challenging of times,” chief executive Richard Murray said on Monday morning.

“We are pleased to report strong sales and earnings for FY20 and importantly, we have provided our customers with the products they required as they spent more time working, learning and seeking entertainment at home, and kept our team members in jobs with an absolute focus on health and safety.”

For JB Hi-Fi specifically, total sales grew by 12.5 per cent to $5.32 billion in the 12 months ending June, with hardware and services sales up 15.1 per cent driven by the communications, computers, visual, audio and small appliances categories – although software sales plunged 12.1 per cent as a result of “continued declines in the movies and music categories, and a decline in the games software category”.

Online sales also grew by a staggering 56.6 per cent to $404 million, representing 7.6 per cent of total sales.

“Our ability to scale and maintain a high level of customer service and on-time delivery during Q4 was pleasing,” the company noted.

The Good Guys also enjoyed a solid result, with total sales growing by 11.2 per cent to $2.39 billion.

Again, that trend was attributed to customers spending more time “working and learning at home as well as upgrading their home appliances and entertainment products”.

The key growth categories were portable appliances, floorcare, laundry, computers and televisions, with online sales up 33 per cent to $174.2 million or 7.3 per cent of total sales.

JB Hi-Fi Limited CEO Richard Murray didn’t provide sales or profit guidance for 2021 due to the “uncertainty arising from COVID-19”, but said the strong performance during the June quarter had continued on in July and August.

Originally published as JB Hi-Fi profits hit $302 million, boosted by people working from home