JBH
Jb Hi-fi Limited
ASX
Results Presentation - 2025 Half Year Results
Sentiment:
Half Year Results
9 February 2025 4:34 PM
JB Hi-Fi reports a strong HY25 performance with total sales up 9.8% to $5.67 billion and EBIT increasing by 8.6% to $419.9 million, driven by growth across all brands and the acquisition of e&s.
Better than expected
The company's sales, EBIT, and NPAT all exceeded the prior year's results, indicating a strong financial performance.
Summary
- JB Hi-Fi's total sales for HY25 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.
- An interim dividend of 170.0 cps was declared, up 7.6% from the previous year.
- The acquisition of 75% of E. & S. Trading Co. (Discounts) Pty. Ltd. (e&s) was completed.
- JB Hi-Fi Australia's sales increased by 7.2% to $3.88 billion.
- JB Hi-Fi New Zealand's sales increased by 20.0% to NZD202.5 million.
- The Good Guys' sales increased by 9.2% to $1.52 billion.
- E&S contributed $92.3 million in sales during the period of ownership.
- Online sales for JB Hi-Fi Australia increased by 16.4% to $682.7 million, representing 17.6% of total sales.
- Online sales for JB Hi-Fi New Zealand increased by 58.4% to NZD32.4 million, representing 16.0% of total sales.
- Online sales for The Good Guys increased by 8.9% to $233.3 million, representing 15.4% of total sales.
- Inventory was $1.32 billion, up 13.5% year on year.
- Net cash was $555.1 million.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results and strategic initiatives. While acknowledging market uncertainties, the overall tone is optimistic and confident.
Positives
- Strong sales growth across all brands: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys.
- Significant increase in online sales for JB Hi-Fi Australia and New Zealand.
- Disciplined cost control helped manage inflationary cost pressures.
- Strong balance sheet with net cash of $555.1 million.
- Increased interim dividend of 170.0 cps.
- Successful acquisition of e&s, contributing to overall growth.
- High return on invested capital at 63.9%.
Negatives
- Gross margin decreased slightly for JB Hi-Fi Australia and The Good Guys due to sales mix and increased competitive activity.
- Inventory increased by 13.5% year on year.
Risks
- Uncertainty in the retail market.
- Continued competitive activity.
- Potential impact of general economic and business conditions, including consumer spending, inflation, and interest rates.
Future Outlook
While pleased with sales momentum, the Group remains cautious given the uncertainty in the retail market and continued competitive activity.
Industry Context
JB Hi-Fi's performance reflects a resilient consumer electronics and home appliance market, with the company leveraging its multichannel capabilities and brand recognition to drive growth. The acquisition of e&s further strengthens its position in the premium home appliance segment.
Comparison to Industry Standards
- Comparable companies such as Harvey Norman and Wesfarmers (owner of Bunnings and Kmart) also operate in the retail sector, but JB Hi-Fi's focus on consumer electronics and home appliances provides a distinct market position.
- Global benchmarks for retail profitability vary, but JB Hi-Fi's EBIT margin of 7.40% is competitive within the industry.
- The company's high return on invested capital of 63.9% indicates efficient use of capital compared to industry peers.
Stakeholder Impact
- Shareholders will benefit from increased dividends and potential capital appreciation.
- Employees may experience job security and growth opportunities due to the company's expansion.
- Customers will have access to a wider range of products and services through the company's multichannel approach.
- Suppliers may see increased demand for their products due to the company's sales growth.
- Creditors are likely to view the company favorably due to its strong balance sheet and cash flow.
Next Steps
- Continue to focus on value promotion and multichannel growth.
- Expand the JB Perks membership program.
- Drive gross margin improvement in New Zealand.
- Integrate e&s into the Group and leverage synergies.
- Review and optimize the supply chain network.
Key Dates
- 2 September 2024: Group completed the acquisition of 75% of e&s
- 31 December 2024: End of HY25 reporting period
- 1 January 2025: Start of January 2025 sales update period
- 31 January 2025: End of January 2025 sales update period
- 10th February 2025: Date of the presentation
- 21 February 2025: Record date for the interim dividend
- 7 March 2025: Payment date for the interim dividend
Keywords
sales, EBIT, JB Hi-Fi, NPAT, dividend, growth, e&s, online sales, retail, financial performance
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.