JBH
Jb Hi-fi Limited
ASX
Annual Report 2024 - with Chair's & CEO's Report
Sentiment:
Annual Report
12 September 2024 6:52 PM
JB Hi-Fi Limited reported FY24 results with solid sales, despite a tough retail environment, driven by strong core categories and strategic initiatives, resulting in $9.59 billion in sales and $438.8 million in NPAT.
Worse than expected
The overall decrease in sales, EBIT, NPAT, and EPS compared to the previous year indicates worse-than-expected results.
Summary
- JB Hi-Fi Limited's FY24 total sales reached $9.59 billion, slightly down 0.4% from FY23.
- Earnings before interest and tax (EBIT) decreased by 15.8% to $647.2 million.
- Net profit after tax (NPAT) was $438.8 million, a 16.4% decrease compared to FY23.
- Earnings per share (EPS) dropped to 401.4 cps, down 16.4% from FY23.
- The company declared a fully franked ordinary dividend of 261.0 cps and a special dividend of 80 cps.
- JB Hi-Fi Australia sales increased by 1.0% to $6.61 billion, with comparable sales up 0.6%.
- JB Hi-Fi New Zealand sales grew by 12.3% to NZD327.9 million, while comparable sales increased by 1.6%.
- The Good Guys sales decreased by 4.8% to $2.68 billion, with comparable sales down 4.8%.
- The company announced the acquisition of E&S Trading Co. for $47.8 million, acquiring 75% initially.
- The acquisition is expected to be completed in September 2024.
- E&S had FY24 revenue of approximately $230 million and normalised pre-AASB16 EBITDA of approximately $7 million.
- The company's net cash position was $302.7 million at the end of FY24.
- Capital expenditure for FY24 was $74.5 million.
Sentiment
Score: 6
Explanation: While the overall financial results show a decline, the company highlights positive aspects such as strong core categories, strategic initiatives, and a significant net cash position, resulting in a moderate sentiment score.
Positives
- Solid sales performance in JB Hi-Fi Australia despite a challenging retail environment.
- Strong growth in JB Hi-Fi New Zealand sales.
- Successful acquisition of E&S Trading Co., expanding product offerings and customer segments.
- Elevated net cash position of $302.7 million.
- Continued investment in strategic initiatives, including store portfolio, online capabilities, and supply chain improvements.
Negatives
- Overall decrease in total sales compared to the previous year.
- Significant decrease in EBIT and NPAT compared to the previous year.
- Decline in sales and profitability for The Good Guys.
- Decrease in ordinary dividend compared to the previous year.
Risks
- Increased competition in the retail market.
- Potential loss or erosion of brand reputation.
- Fluctuations in consumer discretionary spending.
- Online competition impacting store sales.
- Supply chain disruptions.
- Failure to maintain key supplier relationships.
- Inability to attract and retain key staff.
- IT system failures or security breaches.
- External factors such as pandemics or extreme weather events.
- Changes in the regulatory environment.
- Legal proceedings and claims.
Future Outlook
July sales were in line with expectations, with sales momentum in Australia continuing into July. The company anticipates another successful year in FY25.
Management Comments
- FY24 remained a strong year for JB Hi-Fi Limited and its subsidiaries (the Group).
- In this tough retail environment where customers are seeking value, our brands continue to resonate strongly driven by the trust customers have in our low-price best value proposition.
- The results are a credit to our over 15,000 team members whose support and commitment ensure the ongoing success of the business.
- e&s is a high-quality business that prides itself on offering the worlds leading kitchen, laundry and bathroom brands at great prices, with expert advice and exceptional customer service.
- e&s has a highly complementary premium product offering, which will appeal to a new customer base, and commercial construction market focus, making it a strategically compelling addition to the Group.
Industry Context
The results reflect the broader challenges faced by the retail sector in a tough economic climate. The acquisition of E&S positions JB Hi-Fi to compete in the premium home appliance market and diversify its product offerings.
Next Steps
- Opening two new JB Hi-Fi Australia stores and one The Good Guys store in FY2025.
- Expanding the JB Perks membership program.
- Launching a new transport management system.
- Improving inventory flow during peak trade periods.
- Reviewing the supply chain network to enhance the customer experience.
- Continuing to mitigate business risks.
Key Dates
- 30 June 2024: End of the financial year
- 9 August 2024: Agreement to acquire E&S Trading Co.
- 11 July 2024: ACCC instituted proceedings against The Good Guys
- 12 August 2024: Annual report released, acquisition of E&S announced
- September 2024: Expected completion of E&S acquisition
- 6 September 2024: Payment date for final and special dividends
- 23 August 2024: Record date for final and special dividends
Keywords
Retail, Consumer Electronics, Home Appliances, JB Hi-Fi, The Good Guys, Annual Report, Financial Results, Acquisition, E&S Trading Co., Dividends, Sales, EBIT, NPAT, EPS
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.