ASX 200 drops 0.8%, JB Hi-Fi jumps 4.5%

The S&P/ASX 200 Index (ASX: XJO) fell by 0.8% today to 6,076 points.

Reporting season continued today and it was another impressive day by retailers:

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price rose by 4.5% today after reporting an impressive FY20 result.

Total sales increased by 11.6% to $7.9 billion. Underlying earnings before interest and tax (EBIT) rose by 30.5% to $486.5 million and underlying net profit after tax (NPAT) grew by 33.2% to $332.7 million. Statutory NPAT went up by 21% to $302.3 million.

The ASX 200 company reported total online sales grew by 48.8% across the company.

The FY20 result was so strong that JB Hi-Fi decided to increase the final dividend by 76.5% to 90 cents per share. The total FY20 dividend grew by 33.1% to 189 cents.

JB Hi-Fi CEO Richard Murray said: “This is a strong result in the most challenging of times. We are pleased to report strong sales and earnings for FY20 and importantly, we have provided our customers with the products they required as they spent more time working, learning and seeking entertainment at home, and kept our team members in jobs with an absolute focus on health and safety.

In July 2020 the company saw 42.1% sales growth for JB Hi-Fi Australia, 40.4% sales growth for The Good Guys and 9.1% sales growth for JB Hi-Fi New Zealand. However, the company didn’t provide earnings guidance for FY21.

Altium Limited (ASX: ALU)

Altium also reported its FY20 result today. The Altium share price went up by 1.3%.  Revenue grew by 10% to US$189.1 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 13% to US$75.6 million.

Profit before income tax rose by 12% to US$64.6 million, but profit after tax declined 42% to US$30.9 million. There was a taxation change that will allow Altium to take advantage of a tax deduction in FY21 and lower its effective tax rate. The one-time revaluation change of the deferred tax assets and the deferred tax liabilities caused an accounting charge of US$16.4 million. Normalised earnings per share (EPS) grew by 5% to 42.45 cents.

Altium’s board decided to increase the final dividend to AU19 cents per share, which brought the full year dividend to AU39 cents per share, an increase of 15%.

In terms of guidance, the ASX 200 business said it’s still on track to achieve 100,000 subscribers by 2025. However, due to COVID-19, it may take an extra six to twelve months to reach its 2025 goal of US$500 million in revenue. 

Kogan.com Ltd (ASX: KGN)

The online business announced an impressive FY20 report today.

Gross sales went up by 39.3% to $768.9 million and revenue grew by 13.5% to $497.9 million. Its active customer base increased by 35.7% to 2.18 million people. Kogan.com’s gross profit increased by 39.6% to $126.5 million.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 57.6% to $49.7 million and net profit after tax (NPAT) jumped by 55.9% to $26.8 million.

The ecommerce business saw accelerated growth in the second half of FY20 compared to the prior corresponding period. Growth sales increased by 62.5%, gross profit went up 68.3% and adjusted EBITDA rose by 74.1%. 

In July 2020 the company saw continuied strong growth. Gross sales grew by more than 110% year on year, gross profit went up by more than 160% year on year and adjusted EBITDA for the month was more than $10 million.

The company said it was going to continue to invest in its platform and it’s looking for acquisition opportunities.

The Kogan.com share price fell by 6% today, though it is up 440% since 16 March 2020. I imagine it’s close to entering the ASX 200.

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Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. 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.

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