JB Hi-Fi Limited reported a robust 9.8% increase in HY25 sales to AUD 5.67 billion and an 8.0% rise in net profit, supported by its recent acquisition of e&s Trading Co. Despite strong momentum, the company remains cautious about competitive pressures ahead.
- Total sales up 9.8% to AUD 5.67 billion in HY25
- Net profit after tax increased 8.0% to AUD 285.4 million
- Interim dividend raised by 7.6% to 170 cents per share
- Acquisition of 75% stake in e&s Trading Co. completed
- January 2025 sales show continued growth but cautious outlook maintained
Strong Financial Performance in HY25
JB Hi-Fi Limited has delivered a solid half-year performance for HY25, with total sales climbing 9.8% to AUD 5.67 billion, reflecting sustained consumer demand across its diverse retail brands. The group’s net profit after tax rose 8.0% to AUD 285.4 million, underscoring effective operational execution amid a competitive retail environment.
The company’s earnings before interest and tax (EBIT) increased 8.6% to AUD 419.9 million, while earnings per share grew by 8.0% to 261.1 cents. This financial strength has enabled JB Hi-Fi to raise its interim dividend by 7.6% to 170 cents per share, signaling confidence in its cash flow generation and capital management strategy.
Strategic Acquisition and Brand Synergies
A key highlight of the period was the completion of the acquisition of a 75% stake in e&s Trading Co., a premium home appliance retailer. This addition complements JB Hi-Fi’s existing portfolio, which includes the flagship JB Hi-Fi brand and The Good Guys, expanding its reach into kitchen, bathroom, and laundry appliances. e&s contributed AUD 92.3 million in sales during the ownership period, with EBIT aligning with expectations.
The group’s multi-brand strategy continues to leverage distinct customer segments, from tech-savvy consumers to home renovators, supported by a robust multichannel approach encompassing physical stores, online platforms, phone, and chat sales channels. This integrated model enhances customer choice and convenience, driving both foot traffic and digital engagement.
Operational Efficiency and Market Dynamics
JB Hi-Fi’s low-cost operating model and scale advantages have helped maintain competitive pricing and market share despite increased promotional activity. The group reported disciplined cost control, with cost of doing business (CODB) stable at 12.49% of sales, even as it invested in store wages and strategic initiatives.
Online sales growth was particularly notable, with JB Hi-Fi Australia’s online revenue rising 16.4% to AUD 682.7 million, now representing 17.6% of total sales. The Good Guys and JB Hi-Fi New Zealand also saw strong online sales growth, reflecting shifting consumer preferences toward digital channels.
January 2025 Trading Update and Outlook
Early trading in January 2025 showed continued momentum, with JB Hi-Fi Australia’s sales up 7.4% and comparable sales growth of 7.1%. JB Hi-Fi New Zealand posted a remarkable 20.4% sales increase, while The Good Guys and e&s also recorded positive growth. However, the company remains cautious, citing ongoing uncertainty in the retail market and heightened competitive pressures.
Looking ahead, JB Hi-Fi plans to focus on enhancing retail execution, expanding its membership program, and optimizing supply chain operations. The group aims to open five new stores in FY25 and continue integrating e&s to maximize synergies and customer service levels.
Sustainability and Corporate Responsibility
Beyond financial metrics, JB Hi-Fi reaffirmed its commitment to sustainability, targeting net zero direct carbon emissions by 2030 and advancing product and waste recycling initiatives. The company also emphasized health, safety, diversity, and community engagement as integral to its long-term growth strategy.
Bottom Line?
JB Hi-Fi’s HY25 results demonstrate resilience and strategic growth, but cautious market conditions warrant close investor attention.
Questions in the middle?
- How will JB Hi-Fi navigate intensifying competition and inflationary pressures in FY25?
- What impact will the full integration of e&s have on group profitability and margins?
- Can the group sustain strong online sales growth amid evolving consumer behaviors?