JB Hi-Fi (JBH) H1 2025 earnings summary

Executive summary

• Group sales rose 9.9% to $5.67bn for HY25, with EBIT up 8.6% to $419.9m and NPAT up 8.0% to $285.4m, despite a challenging retail environment and heightened competition.

• Interim dividend increased 7.6% to 170 cps, fully franked, representing 65% of NPAT.

• Acquisition of 75% of e&s completed in September 2024, contributing $92.3m in revenue and $1.9m EBIT since acquisition.

• Focus on value, customer service, and leveraging multi-channel retailing to drive demand.

• Addition of e&s expanded access to premium home appliances and commercial customers.

Financial highlights

• Group EBITDA rose 8.1% to $545.9m; EPS up 8.0% to 261.1 cps; gross profit $1,254.2m.

• Free cash flow was $515.7m; net cash position at $555.1m as of 31 December 2024.

• Inventory at $1.32bn, up 13.5% YoY; turnover at 7.13x.

• Dividends paid totaled $200.1m, including a special dividend of 80 cps.

• Net tangible assets per security rose to $4.36.

Outlook and guidance

• January 2025 sales momentum continued: JB Hi-Fi Australia +7.4%, NZ +20.4%, The Good Guys +6.4%, e&s +8.1%.

• Management remains cautious due to retail market uncertainty and competitive pressures.

• No change in cost management approach; focus remains on aligning costs with sales.

• Sales and earnings are typically higher in the first half due to Black Friday and Christmas trading.