JB Hi-Fi Continues Growth with Strong Sales, Strategic Acquisition, and Expanding Digital Presence

About JB Hi-Fi Limited

JB Hi-Fi Limited (ASX: JBH) is a leading retailer of consumer electronics and home appliances across Australia and New Zealand. With over 346 stores and a strong online presence, JB Hi-Fi operates under three key brands: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys. As of 10 February 2025, its share price was AUD 48.50. The company continues to focus on value-driven retailing, strategic acquisitions, and multichannel growth, reinforcing its position as a market leader in the highly competitive retail sector.

Sales Growth Driven by Consumer Demand and Digital Expansion

JB Hi-Fi reported total sales of $5.67 billion for HY25, representing a 9.8% increase from HY24. This growth was primarily driven by strong demand for technology and home appliances, supported by well-executed Black Friday and Boxing Day promotions. The company’s online sales surged 16.4% to $682.7 million, now representing 17.6% of total sales, underscoring its expanding e-commerce footprint.

Across its key divisions, JB Hi-Fi Australia saw a 7.2% sales increase, The Good Guys reported 9.2% growth, and JB Hi-Fi New Zealand outperformed with a 20.0% jump in sales, benefitting from store expansions and an improved product mix. The company’s ability to adapt to shifting consumer preferences and optimise pricing strategies has reinforced its strong market positioning.

Strategic Acquisition Strengthens Market Position

The acquisition of 75% of premium home appliance retailer e&s, completed on 2 September 2024, has further strengthened JB Hi-Fi’s position in the high-end home appliance sector. In its first four months under JB Hi-Fi, e&s contributed $92.3 million in sales, with solid performance from its commercial division. The acquisition aligns with the company’s long-term strategy of diversifying product offerings and expanding into premium segments, enhancing both revenue and customer reach.

Profitability and Capital Management Support Shareholder Value

JB Hi-Fi’s net profit after tax (NPAT) rose 8.0% to $285.4 million, reflecting disciplined cost control and operational efficiencies. Despite increasing competitive activity in the retail sector, the company maintained healthy EBIT margins, with JB Hi-Fi Australia improving to 8.17%, and The Good Guys remaining stable at 6.55%.

The company announced an interim dividend of 170 cents per share, a 7.6% increase from the previous year, demonstrating confidence in its cash generation capabilities. With net cash of $555.1 million, JB Hi-Fi maintains a strong balance sheet, allowing it to invest in growth while maintaining attractive shareholder returns.

Looking ahead, JB Hi-Fi remains cautiously optimistic about the retail environment. The company’s January 2025 trading update showed continued momentum, with 7.4% sales growth in Australia and 20.4% growth in New Zealand, reflecting strong customer demand.

However, JB Hi-Fi acknowledges the uncertain economic landscape and rising competition. To sustain growth, the company is expanding its store network, optimising its supply chain, and enhancing digital sales channels. Additionally, continued investment in customer experience and brand differentiation will be key to maintaining its market leadership in the highly competitive retail sector.