Australia's JB Hi-Fi declares special dividend, shares hit record high (updated)

JB Hi-Fi

12/08/2024 01:34

(Adds share moves in paragraphs 1 and 4; analyst comments and
forecast in paragraphs 7 and 10)
       Aug 12 (Reuters) - Australian consumer electronics
retailer JB Hi-Fi  JBH.AX  announced a special dividend on
Monday, citing a strong net cash position, and reported
better-than-expected annual results, sending its shares up more
than 9% to a record high.
    JB Hi-Fi announced a special dividend of 80 Australian cents
apiece on top of the final dividend of A$1.03 ($0.6769) apiece,
taking the fiscal 2024 payout ratio to 65% of post-tax net
profit.
    "As a result of the group's continued strong financial
performance and cashflow generation, the group has an elevated
net cash position and a significant franking credit balance,"
the electronics retailer said in an exchange filing.
    Shares of the Melbourne-headquartered retailer shot up 9% in
early trade to a lifetime high of A$73.49. 
    Net profit after tax for the year ended June 30 was A$438.8
million ($288.2 million), beating Visible Alpha consensus of
A$423.1 million. However, it was below the prior year's earnings
of A$524.6 million.
    Sales were largely unchanged at A$9.59 billion, narrowly
beating consensus estimates.
    Jefferies' analysts say there is "a lot to like" in the
results with a profit beat, "solid sales momentum into July" and
capital management.
    Consumer sentiment has been under pressure for the past two
years, as decade-high interest rates and sticky inflation prompt
households to cut discretionary spending.
    However, an inflection points seems to be on the horizon for
discretionary retailers, as interest rates are poised to be
lowered in the near term and inflation rate slows down, likely
boosting non-essential spending.
    Analysts at Citi forecast a 5.5% comparable growth in
Australia segment and 5% for the Good Guys business for the
first half of fiscal 2025.
    The consumer electronics giant in a separate filing
announced the acquisition of white goods retailer e&s Trading
for an initial cost of A$47.8 million for a 75% stake.

($1 = 1.5216 Australian dollars)
    

 (Reporting by Sameer Manekar and Sherin Sunny in Bengaluru;
Editing by Stephen Coates and Rashmi Aich)
 ((Sameer.Manekar@thomsonreuters.com;
Sherin.Sunny@thomsonreuters.com;))