JB Hi-Fi share price dips as full-year dividend jumps 43%

Here's how FY22 panned out for this Aussie retailer…

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Key points

  • The JB Hi-Fi share price is edging into the red this morning amid the release of the company's FY22 results
  • Full-year sales and earnings hit a new record amid strong consumer demand
  • The company has declared a final fully franked dividend of $1.53 per share

The JB Hi-Fi Limited (ASX: JBH) share price is edging into the red on Monday morning. This follows the release of the Australian retailer's official financial reports for FY22.

At the time of writing, JB Hi-Fi shares are down 0.33% to $45.40 apiece after initially climbing on market open. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.54%.

Let's check the highlights of the company's reports.

JB Hi-Fi share price lifts on another record year

  • Total sales up 3.5% to a record $9.23 billion
  • Online sales lifted 52.8% to $1.63 billion
  • Earnings before interest and tax (EBIT) up 6.9% to $794.6 million
  • Net profit after tax (NPAT) up 7.7% to a record $545 million
  • Declared final fully franked dividend of $1.53 per share, up 43% from the prior year

Notably, these strong results have flowed through during the first full financial year under JB Hi-Fi group CEO Terry Smart.

What else happened in FY22?

The latest financial year was one defined by online sales and strong consumer demand for JB Hi-Fi. According to the company's reports, online sales accounted for 17.6% of all group sales in FY22. In the second half, despite all physical stores being open, online sales still represented nearly 12% of all sales.

Furthermore, sales in Australia were underpinned by demand for consumer electronics and home appliance products. Meanwhile, in New Zealand, total sales inched 0.3% higher to NZ$262.4 million from growth in visual, games hardware, and smart home categories.

Finally, the Good Guys segment recorded a 2.7% improvement in sales to $2.79 billion. This was bolstered by key product categories such as laundry, portable appliances, floor care, and dishwashers.

What did management say?

In light of the positive momentum, JB Hi-Fi group CEO Terry Smart stated:

These results reinforce the enormous trust our customers have in our brands and the strength of our multichannel offer, which continues to provide customers with choice on how to shop.

In terms of how a tightening economy may impact the retailer, Smart highlighted its value-oriented business as a beneficiary.

As we enter an increasingly uncertain retail environment and household budgets come under further pressure, customers will gravitate to trusted value-driven retailers. Our ongoing strategy of providing customers with the best value and outstanding service every day, will ensure our brands continue to deliver for our customers and remain a destination of choice into the future.

What's next?

While the company did not provide future guidance, it did provide a July sales update. Last month, JB Hi-Fi Australia witnessed total sales growth of 9.7% compared to the prior corresponding period. However, the New Zealand division experienced a 0.9% reduction.

The Good Guys business also recorded a 7.8% lift relative to the prior period.

JB Hi-Fi share price snapshot

The JB Hi-Fi shareholder has had a slightly better experience this year compared to the S&P/ASX 200 Index. Year-to-date, JB Hi-Fi shares are down 5.73% compared to the benchmark's disappointing 7.3% fall.

Based on today's NPAT, the company now trades on a price-to-earnings (P/E) ratio of around 9.1 times. For context, the industry average currently sits at 10.5 times.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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