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Electronics and entertainment retailing giant JB Hi-Fi Ltd (ASX:JBH) told investors it had achieved solid sales of $9.59 billion in the 2024 Financial Year – despite a tough environment for retailers generally – while also announcing an acquisition which will see it branch into other aspects of the home product market.
In addition to the headline figure for sales, JB Hi-Fi said it had achieved a net profit after tax (NPAT) of $438.8 million for FY 2024, while earnings before interest and tax (EBIT) were $647.2 million.
Focusing on its Australian market, the company said total sales during the period had risen 1% to $6.61 billion, underpinned by continuing demand for technology and consumer electronics products, and sales events around Black Friday, Boxing Day and Tax Time.
In New Zealand, the company reported a total sales increase of 12.3% to NZ$327.9 million, with the main areas of growth being in mobile phones, audio, games hardware, IT and small appliances.
Group CEO, Terry Smart said each brand’s core strengths had boosted these results.
“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.
Also reported in this announcement was the company’s plan to acquire E. & S. Trading Co. Pty. Ltd – a long-established retailer of kitchen, bathroom and laundry goods which is mostly based in Victoria.
First opened by the Sinclair Family in 1962, E & S has 10 showrooms in that state and one opening in the ACT in August, and recorded a FY24 revenue of around $230 million.
The acquisition is to happen in two parts: with JB Hi-Fi taking on 75% for a $47.8 million cash consideration, followed by a put and call option arrangement for the remaining 25% to occur in September 2029.
The market was pleased with the final year report card, and by 15:54 AEST, JB Hi-Fi shares were trading at $72.86, a rise of 8.15% since the market opened.
