JB Hi-Fi announces $200M shareholder payout amid profit decline and E&S acquisition

Rosie Drew

August 13, 2024 7:25

JB Hi-Fi recorded a net profit of $438.8 million, down from $524.6 million a year ago.

The electronics goods giant was among the first to reveal its end-of-financial-year results, which also showed annual sales hit $9.59 billion and slightly exceeded market expectations.

The company also revealed plans to acquire a majority stake in E&S Trading Co, a Victoria-based home appliance retailer with 10 showrooms, for $47.8 million. E&S is widely recognised as the official supplier for the popular TV show, The Block.

JB HiFi CEO Terry Smart said sales remain solid thanks to the strength of each brand’s core categories.

“In this tough retail environment where customers are seeking value, our brands continue to resonate strongly driven by the trust customers have in our low-price best-value proposition,” he said.

“E&S Trading has an established commercial business, selling kitchen, laundry and bathroom products to builders and architects, making the acquisition strategically compelling.”

After the announcement, JB Hi-Fi shares were up 9.6% to an all-time high of $73.84, a lift of 39.4% for the year.

The Good Guys, purchased by JB Hi-Fi in 2016, sales decreased by 4.8% to $2.68 billion, with comparable sales down 4.8%. However, online sales increased by 1.3% to $387.2 million, or 14.5% of sales.

Management advised that its core home appliance categories remained resilient, with the consumer electronics categories cycling elevated demand in the prior corresponding period.

A special fully franked dividend of 80 cents per share was declared, bringing the total dividends for the year to 341 cents per share, a 9.3% increase from the previous year. Combined with the final dividend, this special payout will distribute $200 million to shareholders.

July sales are in line with JB Hi-Fi’s expectations.

“It is pleasing to see sales momentum in Australia continue into July. We remain committed to offering the best value and exceptional customer service to maximise our brand’s sales opportunities,” Smart added.

“As always, the results are a credit to our over 15,000 team members whose support and commitment ensure the ongoing success of the business. We will remain focused on our customer’s needs and continue to innovate as we navigate another uncertain year.”