JB Hi-Fi New Zealand reports a $6.8 million loss for 2024

JB Hi-Fi's New Zealand division accounts for under 4% of total group sales. Photo / Greg Bowker

Despite an increase in sales of 12.3% domestically, JB Hi-Fi’s New Zealand division couldn’t make a profit in its FY24 results.

The local division of the ASX-listed company reported revenue for the year ended June 30, 2024 of $327.9 million, up from $292.1m in 2023.

According to the company, the key growth categories in FY24 were mobile phones, audio, games hardware, IT and small appliances.

Online sales also substantially grew by 32.4% to $42.6m for the year, now contributing to 13% of total sales.

However, the business reported an underlying loss before interest and tax of $2.3m, down $6.7m year-on-year.

For the 2024 financial year, JB Hi-Fi NZ had a net loss after tax of $6.8m.

New investments for the business seem to have driven the result, after launching five new stores across the country, including three standard format stores and two international airport stores.

It launched its new store at The Base Te Awa, Hamilton, in July last year, its first in seven years.

In absolute terms, its cost of doing business grew 23.4% due to the continued investment.

Looking ahead in its first FY25 trading update, the company revealed total sales growth for the NZ arm of 12.2% for the period from July 1, 2024, to July 31, 2024. However, comparable sales growth fell by 4.9% during the same period.

The company reported total group sales, including its Australian division and appliance store The Good Guys, of A$9.59 billion, down by 0.4% year-on-year.

The group had a net profit after tax of A$438.8m, down 16.4% from A$524.6m in FY23.

JB Hi-Fi group chief executive Terry Smart said its result remained solid thanks to the strength of each brand’s core categories.

“In this tough retail environment where customers are seeking value, our brands continue to resonate strongly driven by the trust customers have in our low-price, best-value proposition,” Smart said.

“We will remain focused on our customer’s needs and continue to innovate as we navigate another uncertain year.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.