JBH
Jb Hi-fi Limited
ASX
Company Announcement - 2025 Half Year Results
Sentiment:
Half Year Results
9 February 2025 4:32 PM
JB Hi-Fi reports strong HY25 results with a 9.8% increase in total sales and an 8.0% rise in net profit after tax, driven by robust customer demand and strategic acquisitions.
Better than expected
The company reported better than expected sales and earnings growth for HY25, driven by strong customer demand and strategic acquisitions.
Summary
- JB Hi-Fi Limited announced its HY25 results, showcasing significant growth across key metrics.
- Total sales increased by 9.8% to $5.67 billion.
- Earnings before interest and tax (EBIT) rose by 8.6% to $419.9 million.
- Net profit after tax (NPAT) increased by 8.0% to $285.4 million.
- Earnings per share increased by 8.0% to 261.1 cps.
- The company declared an interim dividend of 170.0 cps, up 7.6% from the previous year.
- JB Hi-Fi completed the acquisition of 75% of E. & S. Trading Co. (Discounts) Pty. Ltd. (e&s).
- JB Hi-Fi Australia's total sales increased by 7.2% to $3.88 billion, with comparable sales up 7.2%.
- JB Hi-Fi New Zealand's total sales increased by 20.0% to NZD202.5 million, with comparable sales up 6.9%.
- The Good Guys' total sales increased by 9.2% to $1.52 billion, with comparable sales up 8.8%.
- E&S's total sales were up 7.6% to $92.3 million, with comparable sales up 7.2%.
Sentiment
Score: 8
Explanation: The report is positive due to strong financial results, strategic acquisitions, and a healthy balance sheet. However, caution regarding the retail market and competitive activity tempers the overall sentiment.
Positives
- Strong sales growth across all brands (JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, and e&s).
- Increased profitability with growth in EBIT and NPAT.
- Higher dividend payout to shareholders.
- Successful acquisition of e&s, contributing to overall growth.
- Strong online sales performance across all brands.
- Disciplined cost control helping to manage inflationary pressures.
- Strong balance sheet with significant net cash position.
Negatives
- Gross margin decreased slightly for JB Hi-Fi Australia and The Good Guys due to sales mix and increased competitive activity.
- Increased competitive activity impacted gross margins.
Risks
- Uncertainty in the retail market could impact future sales.
- Continued competitive activity may put pressure on margins.
- Inflationary cost pressures could affect profitability.
Future Outlook
While pleased with the sales momentum in January 2025, the company remains cautious due to uncertainty in the retail market and continued competitive activity.
Management Comments
- 'We are pleased to report strong sales and earnings for HY25,' said Group CEO, Terry Smart.
- Terry Smart added that the company's focus remained on maximizing demand through delivering consistently high levels of customer service and exceptional value.
- Terry Smart said 'Whilst we are pleased to see sales momentum continue into January, we remain cautious given the uncertainty in the retail market and the continued competitive activity.'
Industry Context
The results reflect a competitive retail environment where JB Hi-Fi's focus on customer service and value has helped it maintain growth. The acquisition of e&s is a strategic move to expand into the premium home appliance market.
Comparison to Industry Standards
- Comparable sales growth of 7.2% for JB Hi-Fi Australia is strong compared to general retail trends, but further analysis against direct competitors like Harvey Norman would provide a more detailed benchmark.
- JB Hi-Fi's online sales growth of 16.4% in Australia is a positive sign, but needs to be compared to the online growth rates of other major electronics retailers to assess its relative performance.
- The EBIT margin of 8.2% for JB Hi-Fi Australia is a key indicator of profitability, and benchmarking this against global peers like Best Buy would be valuable.
Stakeholder Impact
- Shareholders will benefit from increased dividends and potential for long-term growth.
- Employees are recognized for their contribution to the company's success.
- Customers continue to receive value and high levels of service.
- Suppliers benefit from increased sales volume.
- Creditors are supported by the company's strong balance sheet.
Next Steps
- The Board will continue to regularly review the Group's capital structure.
- The Group will continue to focus on supporting its people, making a positive impact in the communities, and minimizing its impact on the natural environment.
- The company will continue to adapt and innovate to ensure it remains top of mind for customers.
Key Dates
- 2 September 2024: Completion of the acquisition of 75% of E. & S. Trading Co. (Discounts) Pty. Ltd. (e&s)
- 31 December 2024: End of HY25 reporting period
- 21 February 2025: Record date for the interim dividend
- 7 March 2025: Payment date for the interim dividend
Keywords
Sales, EBIT, NPAT, Dividend, Acquisition, JB Hi-Fi, Retail, Electronics, Appliances
JBH
Jb Hi-fi Limited
ASX
Sector: Consumer Discretionary Distribution & Retail
Filings with Classifications
Worse than expected
22 June 2025 6:24 PM
Regulatory Settlement Announcement
- The company is required to pay a significant pecuniary penalty of $13.5 million and contribute $200,000 to the ACCC's costs, which represents an unexpected financial outlay.
Better than expected
9 February 2025 4:34 PM
Half Year Results
- The company's sales, EBIT, and NPAT all exceeded the prior year's results, indicating a strong financial performance.
Better than expected
9 February 2025 4:32 PM
Half Year Results
- The company reported better than expected sales and earnings growth for HY25, driven by strong customer demand and strategic acquisitions.
Better than expected
30 October 2024 5:50 PM
Annual Results
- The strong FY24 results, exceeding expectations with significant growth in sales and EBIT, indicate better than expected performance.
- The positive Q1 FY25 sales growth across all brands further supports the better than expected results.
Better than expected
30 October 2024 5:43 PM
Sales Update
- Sales growth across all divisions exceeded expectations, indicating strong consumer demand.
Worse than expected
12 September 2024 6:52 PM
Annual Report
- The overall decrease in sales, EBIT, NPAT, and EPS compared to the previous year indicates worse-than-expected results.
Better than expected
12 September 2024 6:41 PM
Annual General Meeting Notice
- JB Hi-Fi's FY2024 results significantly outperformed annual analyst consensus expectations at the start of the financial year, demonstrating better-than-expected performance.
Worse than expected
10 July 2024 8:00 PM
Missing type for ID: 3511
- ASX:JBH announces worse than expected results.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.