Big sales dip for Incredible Connection
JD Group said on Thursday (20 February) that its consumer electronics and appliances business, which includes Incredible Connection and HiFi Corp, experienced challenging operating conditions for the six months ended December 2013.
JD Group pointed to reduced customer spending which resulted in a reduction in merchandise sales of 13.3% for the division.
Gross margins were, however, successfully increased as a result of more conservative product discounting practices, it said.
“The consolidation of the back-office functions of the two brands resulted in successfully reducing operating expenses during the period,” JD group said.
Overall, revenue increased by 4.3% to R17.1 billion, but the group reported a headline loss per share of 59.1 cents compared to headline earnings per share of 234.4 cents for 1H2013.
JD Group suspended its dividend, as it lifted its cash pile set aside to cover customers’ unpaid debts.
Looking ahead, JD group said its consumer electronics & appliances division should continue to perform well.
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