JB Hi-Fi commercial unit posts 'solid' growth as parent sees declines

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JB Hi-Fi commercial unit posts 'solid' growth as parent sees declines

JB Hi-Fi has revealed its commercial business and IT services arm JB Hi-Fi Solutions has posted ‘solid’ sales growth in the first half of FY2022, despite previous concerns.

In the ASX-listed company’s half-year results presentation, JB Hi-Fi did not provide specifics, but said its commercial business “recorded solid sales growth” as it continued to expand on its product and service offering.

This comes despite the company last year expressing concern for the unit, saying it and another business-to-business division The Good Guys Commercial have not delivered their expected growth outcomes during FY 2021. JB Hi-Fi also said it was one of the company’s material business risks at the time.

Overall, JB Hi-Fi reported declines in revenue, net profit and earnings per share year over year due to slowdowns in its hardware and services sales and software sales for the period.

Revenue for the period was down 1.6 percent from $4.94 billion to $4.86 billion, while net profit after tax declined 9.4 percent from $318 million to $288 million. Earnings per share is also down 9.4 percent to $2.50, compared to $2.76 in 2021.

The company however said the result is strong despite the declines when compared to the first half of 2020. Revenue was up 21.7 percent over a two-year period, while net profit was up 68.8 percent over the same period.

“We are pleased to report strong sales and earnings for HY22. We continued to see elevated demand across all of our sales channels, particularly online which our customers seamlessly transitioned to during the various lockdowns demonstrating the strength and trust in our brands,” JB Hi-Fi group chief executive Terry Smart said.

JB Hi-Fi said the increase in demand from customers came despite disruptions in its supply chain and operations amid the COVID-19 pandemic, but also remained cautious and declined to provide FY22 sales and earnings guidance.

“While it remains an uncertain retail environment, we will continue to stay focused on what we can control,” Smart added.

“Our highly engaging in-store and online shopping experiences delivered by our passionate and knowledgeable team members, and our continued focus on leveraging our scale to deliver great value will ensure we meet our customers’ needs during these challenging times.

“I would again like to thank our over 13,000 team members whose unwavering focus on the customer has delivered another strong result.”

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