Switch to at-home entertainment boosts JB Hi-Fi profit expectations

Major electronics retailer JB Hi-Fi has touted a major profit boost due to soaring sales over the past six months driving the boost.

JB Hi-Fi has touted a major profit boost for the first half of the 2021 financial year, with the electronic retailing giant flagging Black Friday and a spur in online sales has driven the earnings boost.

In a shareholder update on Monday, JB Hi-Fi announced an 86.2 per cent jump in unaudited first-half group profit to $317.7m.

Despite sales over the period rising only 23 per cent, the company noted cost-cutting measures over the six months had assisted in the lift in the group’s profit result.

At 10.30am, listed stock in JB Hi-Fi was trading 5 per cent higher following the update to $53.33 per share.

Larger rises in sales among Good Guys stores and an increased penetration in online retailing were two of the main drivers for the rise.

JB Hi-Fi has touted a major profit boost for the first half of the 2021 financial year. Picture: Darren England/ AAP

JB Hi-Fi chief executive Richard Murray said ongoing investments in growing digital products would be a continued focus across its Australian and New Zealand businesses.

“We are pleased to report record sales and earnings for HY21 in what has been an extraordinary period,” Mr Murray said.

“Our continued focus on the customer and investments in our online business and our supply chain have enabled us to seamlessly meet our customers’ increased demand both in-store and online.”

Unaudited group earnings before interest and tax for the first half of financial year 2021 were $462.7m, a 75.9 per cent rise on the previous corresponding period.

The company is expected to release its statutory half-yearly results on February 15.

It also confirmed it had not received any government wage subsidies over the period and was paying commercial landlords agreed rents.

Originally published as Switch to at-home entertainment boosts JB Hi-Fi profit expectations