JB Hi-Fi Posts 10% Sales Growth and Raises Dividend Payout Ratio for FY26

A Year of Growth and Transition

JB Hi-Fi Limited closed the 2025 financial year on a high note, delivering a 10% increase in total sales to $10.55 billion and a 7.3% rise in earnings before interest and tax (EBIT) to $694.1 million. Net profit after tax (NPAT) grew 5.4% to $462.4 million, reflecting steady operational strength across its retail brands. Excluding a one-off $13.7 million expense related to the resolution of Australian Competition and Consumer Commission (ACCC) proceedings against The Good Guys, underlying EBIT and NPAT growth were even more impressive, at 9.4% and 8.5% respectively.

The year also marked a significant leadership change with the retirement of CEO Terry Smart, who had been at the helm since 2021 and contributed to the company’s record sales and share price performance. Nick Wells, a 16-year veteran of the group, stepped into the role, bringing continuity and a deep understanding of the business’s core strengths.

Strategic Focus and Brand Expansion

JB Hi-Fi’s multi-brand retail model, comprising JB Hi-Fi, The Good Guys, and e&s, continues to leverage scale, a low-cost operating model, multichannel capabilities, and a strong people culture. The group’s FY26 strategy emphasizes retail execution, enhancing customer engagement, expanding its store network, and optimizing supply chain operations. Notably, the company plans to open multiple new stores across Australia and New Zealand, including three new JB Hi-Fi stores in New Zealand and five in Australia, alongside growth in its commercial business.

Multichannel growth remains a priority, with investments aimed at expanding online traffic, marketplace offerings, and personalized membership programs. These efforts are designed to maintain consistent customer experiences across physical and digital channels, a critical factor in today’s competitive retail landscape.

Sustainability and Community Commitment

JB Hi-Fi is advancing its sustainability agenda with tangible progress reported in its FY25 Sustainability Report. The group has increased renewable energy use to 40%, reduced direct carbon emissions by 32% since FY20, and set ambitious targets such as achieving net-zero scope 1 and 2 emissions by 2030 and diverting 80% of waste from landfill. Community investment remains strong, with workplace giving donations totaling $4.6 million in FY25 and $44 million since inception.

Dividend Policy and Financial Health

The company declared a fully franked ordinary dividend of 275 cents per share, up 5.4%, alongside a special dividend of 100 cents per share, reflecting confidence in cash flow and profitability. Importantly, JB Hi-Fi announced an increase in its dividend payout ratio to a range of 70-80% of NPAT from FY26, signaling a more shareholder-friendly approach. The balance sheet remains robust, with net cash of $284.1 million and low leverage, providing flexibility for future growth initiatives.

Early FY26 Momentum

Early trading in FY26 shows solid momentum, particularly in New Zealand where JB Hi-Fi recorded a remarkable 39.3% total sales growth and 24.3% comparable sales growth in Q1. Australian operations also posted healthy gains, with JB Hi-Fi Australia growing total sales by 6% and maintaining comparable sales growth at 5%. The Good Guys and e&s brands continue to grow, albeit at a more modest pace. These results align with management’s expectations as the group enters the critical second quarter trading period.

With a strong foundation, a clear strategic roadmap, and a new CEO ready to imprint his vision, JB Hi-Fi appears well-positioned to navigate the evolving retail environment and sustain its track record of delivering shareholder value.