JB Hi-Fi Limited has delivered a robust half-year performance for HY25, reporting nearly 10% sales growth and an 8% rise in net profit, underpinned by strong category demand and a key acquisition.
- Total sales increased 9.8% to $5.67 billion
- Net profit after tax rose 8.0% to $285.4 million
- Interim dividend declared at 170 cents per share, up 7.6%
- Acquisition of 75% stake in E. & S. Trading Co. completed
- Strong online sales growth across all divisions
Solid Growth Amidst Competitive Pressures
JB Hi-Fi Limited has reported a strong set of results for the six months ending 31 December 2024, with total sales climbing 9.8% to $5.67 billion and net profit after tax increasing by 8.0% to $285.4 million. The company’s earnings before interest and tax (EBIT) also rose 8.6% to $419.9 million, reflecting resilience in a challenging retail environment marked by intensified competitor activity.
Group CEO Terry Smart highlighted the company’s focus on delivering exceptional customer service and value as key drivers behind the performance. Despite margin pressures from competitive pricing and sales mix shifts, JB Hi-Fi maintained disciplined cost control, which helped offset inflationary cost pressures and preserve profitability.
Segment Performance and Online Momentum
JB Hi-Fi Australia, the group’s largest segment, saw total sales increase 7.2% to $3.88 billion, with comparable sales growth matching that figure. Growth was broad-based across categories such as mobile phones, small appliances, computers, televisions, and cameras. Online sales surged 16.4% to $682.7 million, representing 17.6% of total sales, underscoring the company’s successful digital strategy.
New Zealand operations delivered an even more impressive 20% increase in total sales to NZD 202.5 million, with comparable sales up 6.9%. The segment benefited from strong demand in mobile phones, computers, cameras, audio, and small appliances, alongside a remarkable 58.4% jump in online sales.
The Good Guys, JB Hi-Fi’s home appliance arm, grew total sales by 9.2% to $1.52 billion, with comparable sales up 8.8%. Key growth categories included floorcare, televisions, portable appliances, cooking, and refrigeration. Online sales also rose by 8.9%, reaching $233.3 million.
Strategic Acquisition and Capital Management
In a notable strategic move, JB Hi-Fi completed the acquisition of a 75% stake in E. & S. Trading Co. (Discounts) Pty. Ltd. in September 2024. This premium home appliance retailer contributed positively with total sales up 7.6% and EBIT aligning with expectations. The acquisition complements JB Hi-Fi’s existing portfolio and expands its footprint in the home appliance market.
Reflecting confidence in ongoing performance, the board declared an interim dividend of 170 cents per share, a 7.6% increase from the prior period, representing 65% of net profit after tax. The group also reported a strong balance sheet with net cash of $555.1 million at the end of December 2024, providing flexibility for future growth initiatives.
Looking Ahead
January 2025 sales updates indicate continued momentum, with all divisions posting solid growth rates. However, management remains cautious amid ongoing market uncertainties and competitive pressures. The company’s commitment to innovation, customer service, and operational efficiency will be critical to sustaining its market position.
JB Hi-Fi also reaffirmed its commitment to sustainability, focusing on workplace inclusivity, community impact, and environmental responsibility, aligning with broader investor expectations for corporate responsibility.
Bottom Line?
JB Hi-Fi’s strong HY25 results and strategic acquisition position it well, but ongoing market competition demands vigilant execution.
Questions in the middle?
- How will JB Hi-Fi sustain margin resilience amid increasing competitive pricing?
- What integration plans and growth targets does JB Hi-Fi have for e&s beyond the initial acquisition period?
- How might evolving consumer electronics trends and supply chain dynamics impact JB Hi-Fi’s future sales growth?