JB Hi-Fi (JBH) H2 2024 earnings summary

Executive summary

• FY24 total sales reached $9.59 billion, with NPAT of $438.8 million and EBIT of $647.2 million; EPS was 401.4 cps.

• JB Australia sales up 1% to $6.61 billion, JB New Zealand up 12.3% to NZD 327.9 million, The Good Guys down 4.8% to $2.68 billion.

• Announced acquisition of 75% of E&S Trading for $47.8 million, expanding into premium appliances and commercial segments.

• Declared a special dividend of 80 cps, with total FY24 dividends of 261 cps plus special, distributing $200 million to shareholders.

• Advanced sustainability initiatives, including gender diversity, recycling, and progress toward net-zero emissions by 2030.

Financial highlights

• Group gross margin was 22.31%, down 36 bps year-over-year; EBIT margin 6.75%, down 124 bps.

• Free cash flow was $490.6 million; net cash position at $302.7 million at year-end.

• Inventory increased 5.1% to $1.09 billion, with turnover at 7.0x.

• CapEx was $74.4 million, up 3.8% year-over-year.

• Ordinary dividend per share was 261 cps, down 16.3% year-over-year.

Outlook and guidance

• July 2024 sales growth: JB Australia up 5.6%, JB New Zealand up 12.2%, The Good Guys up 2.7%.

• Focus on retail execution, value promotion, multi-channel growth, commercial expansion, and supply chain optimization.

• Black Friday and other key events expected to remain significant sales drivers; continued investment in new stores and digital channels.