Bell Potter

Comments: A strong FY16 result driven by sales growth and firmer margin. CODB/rev much improved in 2H16 and a key area of outperformance vs BPe. Key sales growth drivers was relatively broad based across hardware categories. Rollout of small appliances into stores also provided SSS tailwinds.Software a declining part of sales mix (now only 14.1%) also helping. Overall, strong execution in 2H16. JBH has successfully capitalised on sales opportunities from Dick Smith fall-out, housing tailwinds and the conducive trading environment. Looking ahead, need to keep in mind arguably the easing of peak cycle housing turnover and the strong pcp sales numbers that need to be cycled.


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