JB Hi-Fi plans to increase sales by 20% this year

Scott Barbour/Getty Images

JB Hi-Fi expects to increase sales by about 21% to $6.8 billion this year, as the consumer electronic group expands its store network and gains more synergies from its acquisition of The Good Guys.

In its annual report, the company says it will open five new JB Hi-Fi stores and will continue to monitor opportunities for The Good Guys which it bought in November last year for $870 million.

“We continue to invest in our store network, online offering and Solutions business,” say chairman Greg Richards and CEO Richard Murray.

“These initiatives, coupled with a strong promotional plan, will position us well for growth in FY18.

“The key success drivers of the group continue to be having the biggest range and the lowest prices, supported by a talented and enthusiastic team.”

The store network:

Source: JB Hi-FI

JB Hi-Fi confirmed it expects to hit the upper end of The Good Guys synergy target of $15 million to $20 million.

The company in 2017 recorded sales of $5.6 billion, up 42.3%. Underlying profit after tax was up 36.5% to $207.7 million and statutory profit 13.3% higher at $172.4 million.

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