With a focus on maximising customer demand, JB Hi-Fi hits new record high. Investors continue to ride this growth story enriched with dividends
JB Hi-Fi Limited (ASX: JBH)
In its full-year results for the period ending 30 June 2024, JB Hi-Fi Limited (ASX: JBH) reported total sales of $9.59 billion, consistent with the previous fiscal year's $9.6 billion. In Australia, JB Hi-Fi saw a 1.0% increase in total sales to $6.61 billion, with comparable sales rising by 0.6%. This growth was driven by strong customer demand for technology and consumer electronics, supported by successful promotional events including Black Friday, Boxing Day, and Tax Time.
In New Zealand, JB Hi-Fi experienced a 12.3% increase in total sales to NZD 327.9 million, with comparable sales up 1.6%. Key growth areas included Mobile Phones, Audio, Games Hardware, IT, and Small Appliances, with online sales surging by 32.4% to NZD 42.6 million, representing 13.0% of total sales.
Conversely, The Good Guys reported a 4.8% decline in total sales to $2.68 billion, with comparable sales also falling by 4.8%.
The company posted earnings before interest and tax (EBIT) of $647.2 million and a net profit after tax (NPAT) of $438.8 million, down from $525 million in FY23. Earnings per share (EPS) were 401.4 cps, compared to 480 cps in the previous year.
For the first month of FY25, JB Hi-Fi's trading update is generally in line with expectations. JB Hi-Fi Australia achieved a 5.6% increase in total sales and a 5.2% rise in comparable sales, reflecting strong performance in the region. In New Zealand, the company saw a notable 12.2% growth in total sales, though comparable sales declined by 4.9%. Meanwhile, The Good Guys reported a 2.7% increase in both total and comparable sales, indicating stable performance.
JB Hi-Fi has entered into an agreement to acquire E. & S. Trading Co. (Discounts) Pty. Ltd. (“e&s”), a company known for its premium offerings across the kitchen, laundry, and bathroom product segments. e&s also has an established commercial presence in Victoria, serving builders, developers, and architects, and has recently expanded with a new location in the Australian Capital Territory (ACT). This acquisition aligns with JB Hi-Fi’s strategy to enhance its product range and expand its market presence in key segments.
Underpinned by its diverse and resilient product categories across various brands, as well as a multichannel capability supported by a high-quality store portfolio, JB Hi-Fi is focused on strategic growth initiatives. For FY25, the company plans to open two new JB Hi-Fi Australia stores and one new The Good Guys store. Additionally, JB Hi-Fi is targeting expansion in New Zealand with plans to open five new stores. The company is also leveraging artificial intelligence to enhance its sales channels and expand its membership programs, aiming to strengthen customer engagement and drive further growth.
Source: Company's Report
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