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JB Hi-Fi shrugs off competition as profit jumps 35 per cent

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Strong sales of portable speakers, drones and televisions have helped JB Hi-Fi deliver a 35 per cent jump in full-year net profit, despite stiff competition.

While the consumer electronics giant performed strongly over the past year, its 2016 acquisition, The Good Guys, faced a “challenging” second-half in the home appliances market.

Net profit for the 12 months to June 2018 rose to $233 million from $172 million.

Despite some signs of a slowing housing market in Sydney, the crowded home appliances sector has been competitive.

CEO Richard Murray tells Ross Greenwood “competition makes you stronger”.

“We’re a pretty lean ship and JB and The Good Guys and we want to keep our costs low so we can keep prices low to our customers.”

He says an “improved website” and” better delivery choices” are “really resonating with customers.”

“I think we’re the most efficient player.”

Mr Murray also says staff play a crucial role in the success of the brand.

“It’s the staff that create the authenticity in the stores.”

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