JB Hi-Fi (JBH) H1 2025 earnings summary

Executive summary

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

• Interim dividend increased 7.6% to 170.0 cps, fully franked, representing 65% of NPAT, with a record date of 21 February 2025.

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

• Continued sales momentum into January 2025 across all segments, but management remains cautious due to retail market uncertainty.

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

Financial highlights

• Group EBITDA rose 8.1% to $545.9 million; EPS up 8.0% to 261.1 cps.

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

• Inventory increased 13.5% year-over-year to $1.32 billion, with turnover at 7.13x.

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

• Net tangible assets per security rose to $4.36.

Outlook and guidance

• January 2025 sales growth remained strong: JB HI-FI Australia +7.4%, NZ +20.4%, The Good Guys +6.4%, e&s +8.1%.

• Management remains cautious for the remainder of FY25 due to ongoing retail market uncertainty and heightened competition.

• 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.