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Investing.com -- JB Hi-Fi Limited reported a net profit after tax (NPAT) of $476 million for the fiscal year 2025, approximately 1% ahead of expectations.
The company’s underlying EBIT reached $707.8 million, excluding a $13.7 million one-off expense related to ACCC proceedings. JB Hi-Fi Australia’s EBIT performed about 1% better than consensus, while The Good Guys division exceeded expectations by roughly 6%. However, the JB Hi-Fi New Zealand and e&s divisions underperformed against forecasts.
In a leadership change, the company announced that Nick Wells will replace Terry Smart as CEO starting October 2025.
JB Hi-Fi Australia’s gross margin declined slightly by 21 basis points to 21.99% for FY25, aligning with management’s target of approximately 22%. Second-half margins decreased by 27 basis points against a challenging comparison base. The Nintendo Switch 2 launch in the fourth quarter of 2025 provided a sales boost without significantly impacting gross margins, likely due to offsetting revenue from related attachments such as downloads and subscriptions.
The Good Guys division achieved record gross margins, expanding by 87 basis points year-over-year in the second half to 23.9%. This resulted in a record full-year gross margin of 23.47%, which the company attributed to "strong execution." Operating costs increased by 8.2% for the fiscal year, with a 7.2% rise in the second half, driven by higher store wages to support increased customer traffic.
The company declared a final dividend of 105 cents plus a special dividend of 100 cents, representing a normalized payout ratio of 86%. JB Hi-Fi has increased its target payout ratio from 65% to 70-80% starting in FY26, noting that its capital structure "allows for investments in organic and inorganic opportunities."
Looking ahead, July sales have remained solid despite tougher comparisons. JB Hi-Fi Australia reported like-for-like sales growth of 5.1%, while New Zealand saw a 24% increase, both exceeding consensus expectations for the first half of 2026. The Good Guys recorded like-for-like sales growth of 3.8%, slightly below forecasts.
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