JB Hi-Fi boosts profit post-takeover, as Domain drops
Electronics retailer JB Hi-Fi's full-year net profits has jumped 35 per cent as real-estate property ad site Domain swings to a $6.2 million full-year net loss following its spin-off from Fairax.
Consumer electronics giant JB Hi-Fi has posted a 35 per cent jump in full-year net profit, boosted by its takeover of rival The Good Guys, but reported slowing sales growth in the first month of the new financial year.
Net profit for the 12 months to June 2018 rose to $233.2 million from $172.4 million a year earlier, while underlying profit after tax was up 12.3 per cent, helped by revenue growing 21.8 per cent to $6.85 billion.
The latest results include 12 months contribution from The Good Guys, compared to only seven months in the previous financial year.
Chief executive Richard Murray says the Australian business performed strongly over the past year, although it was a "challenging" second-half for The Good Guys - which was acquired in November 2016 - in the home appliances market.
JB Hi-Fi has forecast a 3.6 per cent rise in total sales to around $7.1 billion for 2018/19, comprising of $4.75 billion from JB Hi-Fi Australia and $2.15 billion from The Good Guys, with the rest coming from its New Zealand operations.
The company plans to open five JB Hi-Fi stores and two The Good Guys stores in Australia, and close one JB Hi-Five store in New Zealand.
JB Hi-Fi Australia posted a 2.9 per cent rise in sales for July, compared with 9.3 per cent growth for the same month last year, while comparable sales were up 0.3 per cent,compared with a 6.5 per cent jump a year earlier.
Mr Murray called the July sales results "pleasing" given the strong sales in the same month a year ago, and considering the impact of the FIFA World Cup bringing forward TV sales into June.
Sales growth for The Good Guys was up 2.7 per cent in July, compared with 6.8 per cent growth last July.
The Good Guys' comparable sales growth has also slowed to 1.4 per cent in July from 5.7 per cent growth last July.
JB Hi-Fi will pay a final dividend of 46 cents a share fully-franked, up nine cents from a year earlier.
JB Hi-Fi's shares were up 1.8 per cent to $23.88 at 10:50am Sydney time, trading above Morningstar's $23.00 fair value estimate.
The numbers
- Net profit up 35pct to $233.2 million
- Revenue up 21.8pct to $6.85 billion
- Final dividend 46 cents/share fully-franked, unchanged
Domain swings to $6.2m full-year net loss
Real estate advertiser Domain (ASX: DHG) has swung to a net loss of $6.2 million in 2017/18, hurt in part by restructuring charges and the rebranding of some print titles, with the group reporting a quiet listings market in Sydney at the start of the new financial year.
Excluding significant items totalling $29.6 million, profit after tax for the year to June 25 was up 7.7 per cent at $52.9 million, with revenue up 11.5 per cent to $357.3 million.
Domain - which was spun-off from Fairfax Media last year in November - says the first six weeks of 2018/19 saw a "subdued" listings environment in Sydney, in July, against high demand over the same period a year earlier.
Domain's shares were at $3.36 at 10:30am Sydney time, trading above Morningstar's $3.10 fair value estimate.
Analyst note to follow.BlueScope full-year net profit doubles to $1.57b
BlueScope has announced a $250 million share buyback after reporting that its full-year net profit more than doubled to $1.57 billion.
The steel manufacturer's result was boosted by one-off gains totalling $743.1 million, relating to tax set-offs and the reversal of last year's Australian steel products plant and equipment impairments, and a nine per cent jump in revenue to $11.49 billion.
Bluescope CEO and managing director Mark Vassella said strong demand for steel and improved profit margins had driven a 15 per cent improvement in full-year underlying earnings.
"Underlying (earnings before interest and tax) strengthened to $745 million in 2H FY2018, up $220.7 million on the first half, and our best half since December 2008," he said.
Underlying profit after tax for the year to June 30 rose 27 per cent to $826 million.
BlueScope is forecasting a 10 per cent jump in first-half 2018/19 underlying earnings before interest and tax, from the $745 million booked in the second-half of 2017/18.
BlueScope Steel's shares were down 2.9 per cent to $17.36 at 11:08 am Sydney time, trading well above Morningstar's $8.70 fair value estimate.
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