JB Hi-Fi says it will reward shareholders with a multimillion-dollar special dividend after better-than-expected earnings pushed net profit beyond $400 million.
The company, which owns The Good Guys home appliance and consumer electronics brand, said it made a $439 million net profit after tax in 2023/24, down 16 per cent from the previous year. Sales were flat at $9.6 billion.
JB HiFi also announced it would pay $47.8 million to acquire a majority share in E&S Trading Co, a 10-showroom home appliance retailer based in Victoria perhaps best known to television viewers as the official supplier to The Block home renovation show.
JB HiFi chief executive Terry Smart said sales were solid at the home appliance and personal electronics retailer on the back of 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,” Mr Smart said on Monday.
JB HiFi said it would pay an 80 cents per share special dividend - a total of $87.5 million - on top of its ordinary $1.03 per share, $112.5 million dividend, which was also above analyst expectations.
At 11am AEST on Monday, JB Hi-Fi shares were up 9.6 per cent to an all-time high of $73.84, a lift of 39.4 per cent for the year.
E&S Trading has an established commercial business, selling kitchen, laundry and bathroom products to builders and architects, making the acquisition strategically compelling, Mr Smart said.
It will pay $47.8 million to acquire three-quarters of the business, with an option to buy the rest in 2029.
At JB Hi-Fi's 205 stores in Australia, total sales were up 1.0 per cent to $6.61 billion, with same-store sales up 0.6 per cent, while sales dropped 4.8 per cent to $2.7 billion at its 106 The Good Guys stores.
Sales momentum has continued into 2024/25, with same-store sales up 5.2 per cent in July at JB Hi-Fi Australia and up 2.7 per cent at The Good Guys, although down 4.9 per cent at JB Hi-Fi New Zealand.
E&P Capital retail analyst Phillip Kimber said it was a slightly better-than-expected result with strong July trading.
