Electronics retailer JB Hi-Fi has revealed that its IT services business, JB Hi-Fi Solutions, has not delivered its expected growth during the past financial year.
In its full year results released today, the company said JB Hi-Fi Solutions and another business-to-business division The Good Guys Commercial not delivering their expected growth outcomes is one of the company’s material business risks.
JB Hi-Fi however said it would continue investing in both businesses “to support their continued growth” and “expand” their product and service offerings.
The company also said there are “significant opportunities” to grow JB Hi-Fi Solutions and The Good Guys Commercial and expand into new markets, and are also expected to help drive sales and earnings growth for the group.
CRN has contacted JB Hi-Fi for further comment on JB Hi-Fi Solutions' performance.
In its full financial year report released to the ASX today, JB Hi-Fi reported growth across the board as demand for consumer electronics and home appliance products continue to increase.
In the 12 months ended 30 June 2021, JB Hi-Fi revenue increased 12.6 percent from $7.9 billion to $8.9 billion. Within revenue, online sales increased 78.1 percent to $1.1 billion, accounting for 10.3 percent of total sales.
Earnings increased by 53.8 percent to $743.1 million, while net profit after tax is up 67.4 percent to $506.1 million.
“I would like to recognise and thank our team members across Australia and New Zealand who have worked tirelessly throughout this period and delivered another record result,” recently appointed JB Hi-Fi chief executive Terry Smart said.
“Our continued focus on the customer, combined with the strength and competitive advantage of our multichannel offer, be it in-store, online or over the phone, has enabled us to seamlessly meet our customers’ increased demand.”
As a group, JB Hi-Fi plans to continue investing in its online and supply chain operations, including an upgraded website and expanded delivery and warehouse options.
“The group is pleased with how its online and supply chain operations have scaled, and maintained a high level of customer service and on-time delivery, during a period of significantly increased volume,” the company said.
In its sustainability report, JB Hi-Fi also revealed it had refurbished some 7500 "unsellable" smartphones over the period, with most of them repurposed for staff use or as loan devices for customers.
Also reported by CRN sibling site iTnews, JB Hi-Fi said its central warehouse “operates a process to refurbish and re-use within our business ‘unsellable’ mobile phones that have been returned by customers or are ex-display stock”.
Looking ahead, JB Hi-Fi expects increased customer demand and strong sales over the next two years, despite disruptions and variability to sales caused by the COVID-19 restrictions. It has not provided sales and earnings guidance for the 2022 financial year.
“While it remains an uncertain retail environment, we have continued to demonstrate our ability to adapt and respond,” Smart said.
“The combination of our passionate and knowledgeable team members, our multichannel offer, including quality store locations and established online offerings, and our ongoing investment in our supply chain gives us confidence in the outlook for the business.”