JB Hi-Fi shares lift after improved first-half results
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More news: Shares in JB Hi-Fi are up 1% at $103.51 in early trading on the ASX after the consumer electronics giant reported higher profit and sales for the half year to December and increased its interim payout.
Analysts were unanimous the company had delivered a strong result.
Barrenjoey analysts said the company topped expectations, with both JB Australia and The Good Guys earnings ahead of expectations, while January trading numbers were also strong.
What they said: "Given the beat and strong January we expect the shares to continue trading well," Barrenjoey said in a note.
E&P Capital analysts said: "Our initial thoughts are that JBH delivered another good result — however the strong share price leading into the result may suggest the market was looking for a higher level of VA consensus upgrades than ~5%".
JB Hi-Fi ups dividend after lift in half-year profit
The news: Consumer electronics giant JB Hi-Fi has increased its interim payout after reporting higher profit and sales for the half year.
The numbers: Net profit for the six months to December 2024 was up 8% to $285.40 million while revenue rose 9.9% to $5.67 billion. The company will pay a higher dividend of $1.70, up from $1.55 per share a year ago.
The context: JB Hi-Fi chief executive Terry Smart said the stronger sales and earnings came despite a challenging trading environment, marked by heightened competitor activity.
Comparable sales at its flagship Australian stores were up 7.2%, driven by demand for technology and consumer electronics products, while New Zealand stores recorded 6.9% increase and appliances retailer The Good Guys saw comparable sales lift 8.8%.
The company said the growth momentum has continued into January.
What they said: “Whilst we are pleased to see sales momentum continue into January, we remain cautious given the uncertainty in the retail market and the continued competitive activity,” Smart said.
The sources: ASX announcement, ASX announcement
