Motley Fool Australia

Why Polynovo and JB Hi-Fi shares outperformed in FY20

hands holding up winners cup, asx 200 winning shares
Image source: Getty Images

It’s fair to say that investors in Polynovo Ltd (ASX: PNV) and JB Hi-Fi Limited (ASX: JBH) shares enjoyed a bumper last 12 months.

For the financial year ending 30 June 2020 (FY20), both Polynovo and JB Hi-Fi shares rocketed around 63.9% higher.

That’s good news for shareholders given the benchmark S&P/ASX 200 Index (INDEXASX: XJO) slumped 11.4% lower in FY20.

So, what have been the major growth factors for the Aussie biotech company and retailer, and is there more in store for FY21?

Why Polynovo and JB Hi-Fi shares rocketed higher in FY20

Let’s start with Polynovo before looking at why JB Hi-Fi shares surged higher. The Polynovo share price had another bumper 12 months and is up 2,479% in the last 5 years.

One factor that’s fuelling the Aussie biotech company higher is strong sales growth from its NovoSorb Biodegradable Temporising Matrix (BTM) product. 

PolyNovo posted record US quarterly sales of $4.49 million for the March quarter despite the coronavirus pandemic outbreak. For context, that figure was 166% higher than Polynovo’s March 2019 quarter sales of $1.69 million.

The strong start to the year came after Polynovo posted $2 million worth of monthly NovoSorb BTM sales for the first time in December 2019, up 134% compared to December 2018 levels.

However, JB Hi-Fi shares also enjoyed a successful year on the markets. Unlike Polynovo, much of that growth has actually come in the first half of 2020.

Much of the JB Hi-Fi share gains this year have actually been due to the pandemic. Many Aussies were forced to work from home from March onwards which saw the retailer’s electronics sales surge higher.

People flocked to the retailer to secure laptops, monitors and other accessories in preparation for the shift in working arrangements. This boosted JB Hi-Fi Australia sales by 11.6% in 3Q FY20 while The Good Guys sales climbed by 13.9% year-on-year.

Foolish takeaway

Clearly, both of these ASX 200 shares have performed well in the last 12 months on the back of strong sales. While the demand drivers are quite different, a strong growth trajectory could leave both Polynovo and JB Hi-Fi shares well-positioned for the next 6-12 months.

Forget what just happened. THIS is the stock we think could rocket next...

One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting...

Because 'Doc' Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget 'buy now pay later', this stock could be the next hot stock on the ASX.

Returns as of 6th October 2020

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles...