Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — HY24 Earnings Presentation
42 slides from Jb Hi-fi's earnings presentation, Feb 12, 2024
Slide 1: HY24 Results Presentation
rsonal use only JB Hi-Fi Limited HY24 Results Presentation JB HI-FI LIMITED
Slide 2: Agenda
Agenda 1. Group Overview rsonal use only 2. JB HI-FI Australia 3. JB HI-FI New Zealand 4. The Good Guys 5. Group Balance Sheet and Cash Flow 6. Group FY24 Trading Update 7. Group Focus Areas 8. Investment Checklist Terry Smart Nick Wells Group CEO Group CFO JB HI-FI LIMITED PAGE 2
Slide 3: Group Overview
rsonal use only 1. Group Overview
Slide 4: The group model
The group model Two iconic retail brands rsonal use only Purpose Help people with better ways to live, Help families live better for less learn, work, and play Leading retailer of technology and consumer Leading retailer of home appliances and Product offering electronics consumer electronics 220+ J
Slide 5: Group Model: Underpinned by key competitive advantages
Group Model Underpinned by 4 key competitive advantages rsonal use only 1 Scale 2 Low Cost Operating Model 3 Multichannel Capability 4 People and Culture ▪ #1 player in Australian Consumer ▪ Constant focus on productivity and ▪ Focus on providing the customer with an ▪ Knowledgeable and passionate E
Slide 6: Generating sustainable long-term growth
Generating sustainable long-term growth The Group is committed to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas HY24 Progress Our People ▪ Continued to improve gender diversity across the Group, with an increase in the num
Slide 7: Group HY24 Performance
Group HY24 Performance HY24 Group Performance rsonal use only pre Covid AUD HY24 HY23 Growth Gro HY19 Total sales ($m) 5,162.1 5,278.5 (116.5) (2.2%) ▼ 3,843.7 1,318.4 Earnings before interest and tax ($m) 386.7 479.2 (92.6) (19.3%) ▼ 236.6 150.0 Net profit after tax ($m) 264.3 329.9 (65.6) (19.9%)
Slide 8: Group HY24 Performance
Group HY24 Performance HY24 Group Performance rsonal use only HY24 HY23 Growth $m % Sales ($m) - JB HI-FI Australia 3,615.1 3,588.8 26.4 0.7% ▲ - JB HI-FI New Zealand (NZD) 168.7 160.6 8.1 5.1% ▲ - The Good Guys 1,390.9 1,544.0 (153.1) (9.9%) ▼ Total Sales (AUDm) 5,162.1 5,278.5 (116.5) (2.2%) ▼ EBI
Slide 9: JB HI-FI Australia
rsonal use only 2. JB HI-FI Australia
Slide 10: JB HI-FI Australia HY24 Performance
JB HI-FI Australia HY24 Performance rsonal use only AUD HY24 HY23 Growth Sales ($m) 3,615.1 3,588.8 0.7% ▲ Gross Profit ($m) 795.6 820.0 (3.0%) ▼ Gross Margin (%) 22.01% 22.85% (84 bps) ▼ Cost of Doing Business (%) 11.87% 11.36% +50 bps ▲ EBITDA ($m) 366.6 412.2 (11.1%) ▼ EBITDA Margin (%) 10.14% 11
Slide 11: JB HI-FI Australia HY24 Sales
JB HI-FI Australia HY24 Performance HY24 Sales rsonal use only SALES GROWTH BY QUARTER ▪ Total sales increased by 0.7% to $3.62 billion, with comparable sales up 0.1%, driven by continued customer demand for technology and Total consumer electronics products, and supported by well-executed Black Fri
Slide 12: JB HI-FI Australia HY24 Earnings
JB HI-FI Australia HY24 Performance HY24 Earnings rsonal use only ▪ Gross profit decreased by 3.0% to $795.6 million with gross margin EBIT down 84 bps to 22.0%, driven by sales mix and increased levels of on-floor discounting ▪ CODB was 11.9%, up 50 bps, and in absolute terms grew 5.2%, with discip
Slide 13: JB HI-FI New Zealand
rsonal use only 3. JB HI-FI New Zealand
Slide 14: JB HI-FI New Zealand HY24 Performance
JB HI-FI New Zealand HY24 Performance rsonal use only NZD HY24 HY23 Growth Sales ($m) 168.7 160.6 5.1% ▲ Gross Profit ($m) 28.2 25.9 8.9% ▲ Gross Margin (%) 16.70% 16.12% +58 bps ▲ Cost of Doing Business (%) 15.20% 12.56% +264 bps ▲ EBITDA ($m) 2.5 5.7 (55.6%) ▼ EBITDA Margin (%) 1.50% 3.56% (206 bp
Slide 15: JB HI-FI New Zealand HY24 Sales
JB HI-FI New Zealand HY24 Performance HY24 Sales rsonal use only SALES GROWTH BY QUARTER ▪ Total sales increased by 5.1% to NZD168.7 million, with comparable sales down 1.2% Total 7.6% Comp ▪ The key growth categories were Games Hardware, Audio, Mobile Phones, Small Appliances and IT accessories. So
Slide 16: JB HI-FI New Zealand HY24 Earnings
JB HI-FI New Zealand HY24 Performance HY24 Earnings rsonal use only ▪ Gross profit increased by 8.9% to NZD28.2 million with gross margin EBIT 1 at 16.7%, an improvement off a low base in the pcp STATUTORY UNDERLYING ▪ CODB was 15.2%, up 264 bps. In absolute terms CODB grew 27.1% as we continue to i
Slide 17: The Good Guys
rsonal use only 4. The Good Guys
Slide 18: The Good Guys HY24 Performance
The Good Guys HY24 Performance rsonal use only AUD HY24 HY23 Growth Sales ($m) 1,390.9 1,544.0 (9.9%) ▼ Gross Profit ($m) 325.0 358.4 (9.3%) ▼ Gross Margin (%) 23.37% 23.21% +16 bps ▲ Cost of Doing Business (%) 13.58% 11.87% +171 bps ▲ EBITDA ($m) 136.2 175.2 (22.2%) ▼ EBITDA Margin (%) 9.79% 11.35%
Slide 19: The Good Guys HY24 Sales
The Good Guys HY24 Performance HY24 Sales rsonal use only SALES GROWTH BY QUARTERTotal Comp ▪ Total sales decreased by 9.9% to $1.39 billion, with comparable sales down 9.9% and sales improving throughout the half Total Comp ▪ The brand’s dominant Home Appliance categories remained resilient, with t
Slide 20: The Good Guys HY24 Earnings
The Good Guys HY24 Performance HY24 Earnings rsonal use only ▪ Gross profit was $325.0 million with gross margin up 16 bps to EBIT 23.4%, driven by sales mix that resulted from the resilience of the Home Appliance categories ▪ CODB was 13.6%, up 171 bps, and in absolute terms grew 3.1%, with discipl
Slide 21: Group Balance Sheet And Cash Flow
rsonal use only 5. Group Balance Sheet And Cash Flow
Slide 22: Group Balance Sheet
Group Balance Sheet and Cash Flow Group Balance Sheet rsonal use only AUDm HY24 FY23 HY23 ▪ Inventory was $1.16 billion, down 3.9% or $47.5 million year on year Cash 488.0 177.3 391.2 Receivables 178.2 146.5 174.3 ▪ Inventory turnover was up 33 bps to 7.2x (HY23: 6.9x) Inventories 1,163.8 1,040.9 1,
Slide 23: Group Cash Flow Statement and Performance Indicators
Group Balance Sheet and Cash Flow Group Cash Flow Statement Group Performance Indicators rsonal use only AUDm HY24 HY23 HY24 HY23 EBITDA 505.2 592.6 Fixed Charge Ratio 3 4.0x 5.0x Change in working capital 217.2 208.1 Interest Cover 3 388.7x 436.2x Net interest received / (paid) on borrowings 4.7 0.
Slide 24: Capital Management
Group Balance Sheet and Cash Flow Capital Management HY24 DIVIDEND OF 158 CPS rsonal use only ▪ The interim dividend is 158 cents per share (cps) fully franked, down 39 cps or 19.8% and represents 65% of NPAT ▪ The record date for the interim dividend is 23 February 2024, with payment to be made on
Slide 25: Group FY24 Trading Update
rsonal use only 6. Group FY24 Trading Update
Slide 26: January 2024 sales update
Group FY24 Trading Update January 2024 sales update rsonal use only JANUARY SALES GROWTH The Group provides the following sales update for the period 1 January 2024 to 31 January 2024 8.2% Total ▪ Total sales growth for JB HI-FI Australia was 2.5% with Comp comparable sales growth of 1.7% ▪ Total sa
Slide 27: Group Focus Areas
rsonal use only 7. Group Focus Areas
Slide 28: Group Focus Areas
Group Focus Areas The Group continues to leverage and evolve its unique offer and capabilities rsonal use only Group Focus areas HY24 Progress Retail Execution ▪ Delivered a strong promotional program, particularly in key Black Friday and Boxing Day promotional periods ▪ Stayed highly focused on act
Slide 29: Group Focus Areas
Group Focus Areas The Group continues to leverage and evolve its unique offer and capabilities rsonal use only Group Focus areas HY24 Progress Commercial ▪ Continued to grow our active customer base across corporate, government and education customers ▪ Ongoing development of a multichannel experien
Slide 30: Investment Checklist
rsonal use only 8. Investment Checklist
Slide 31: Investment Checklist
Investment Checklist rsonal use only Unique team culture and unrivalled Unique and relevant brands customer service Flexible business model – history of Multichannel capability built around high quality store category growth and development portfolio Diverse and resilient product categories
Slide 32: Appendices
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Slide 33: Appendix I: Group Profit and Loss – Breakdown
Appendix I Group Profit and Loss – Breakdown rsonal use only HY24 HY23 JB HI-FI JB HI-FI JB HI-FI JB HI-FI Growth TGG Group TGG Group AUDm AUST NZ (NZD) AUST NZ (NZD) Sales 3,615.1 168.7 1,390.9 5,162.1 3,588.8 160.6 1,544.0 5,278.5 (2.2%) ▼ Gross Profit 795.6 28.2 325.0 1,146.8 820.0 25.9 358.4 1,2
Slide 34: Appendix II: Group Profit and Loss
Appendix II a) 5 year Group Profit and Loss rsonal use only AUDm HY24 HY23 HY22 HY21 HY20 Sales 5,162.1 5,278.5 4,861.8 4,941.2 3,995.2 Gross Profit 1,146.8 1,201.8 1,064.4 1,085.2 860.2 Gross Margin 22.21% 22.77% 21.89% 21.96% 21.53% EBITDA 505.2 592.6 529.0 571.9 372.1 Depreciation & Impairment 11
Slide 35: Appendix II: JB HI-FI Australia Profit and Loss
Appendix II b) 5 year JB HI-FI Australia Profit and Loss rsonal use only AUDm HY24 HY23 HY22 HY21 HY20 Sales 3,615.1 3,588.8 3,290.5 3,355.7 2,722.4 Gross Profit 795.6 820.0 716.3 737.4 600.8 Gross Margin 22.01% 22.85% 21.77% 21.98% 22.07% EBITDA 366.6 412.2 361.4 399.3 277.5 Depreciation & Impairme
Slide 36: Appendix II: JB HI-FI New Zealand Profit and Loss
Appendix II c) 5 year JB HI-FI New Zealand Profit and Loss rsonal use only NZDm HY24 HY23 HY22 HY21 HY20 Sales 168.7 160.6 138.4 144.9 132.8 Gross Profit 28.2 25.9 24.2 24.8 23.0 Gross Margin 16.70% 16.12% 17.49% 17.13% 17.36% EBITDA 2.5 5.7 7.4 7.6 5.8 Depreciation & Impairment 3.0 0.4 0.1 0.8 4.3
Slide 37: Appendix II: The Good Guys Profit and Loss
Appendix II d) 5 year The Good Guys Profit and Loss rsonal use only AUDm HY24 HY23 HY22 HY21 HY20 Sales 1,390.9 1,544.0 1,439.4 1,450.5 1,147.5 Gross Profit 325.0 358.4 324.9 324.6 237.6 Gross Margin 23.37% 23.21% 22.58% 22.38% 20.71% EBITDA 136.2 175.2 160.5 165.4 89.2 Depreciation & Impairment 43.
Slide 38: Appendix II: Group Balance Sheet
Appendix II e) 5 year Group Balance Sheet rsonal use only AUDm HY24 HY23 HY22 HY21 HY20 Cash 488.0 391.2 844.5 472.8 76.8 Receivables 178.2 174.3 133.1 322.6 386.6 Inventories 1,163.8 1,211.4 1,064.8 1,135.4 1,132.3 Other 43.9 37.2 32.0 35.4 37.6 Total Current Assets 1,873.9 1,814.1 2,074.4 1,966.2
Slide 39: Appendix II: Group Cash Flow
Appendix II f) 5 year Group Cash Flow rsonal use only AUDm HY24 HY23 HY22 HY21 HY20 EBITDA 505.2 592.6 529.0 571.9 372.1 Change in working capital 217.2 208.1 482.3 (34.6) (17.7) Net interest received / (paid) on borrowings 4.7 0.8 (0.1) (1.0) (4.8) Interest on lease liabilities (13.9) (9.4) (9.7) (
Slide 40: Appendix II: Group CODB reconciliation
Appendix II g) 5 year Group CODB reconciliation rsonal use only AUDm HY24 HY23 HY22 HY21 HY20 Other income (ex interest revenue) (1.0) (1.6) (1.8) (1.0) (0.8) Sales and marketing expenses 532.7 504.5 448.3 433.9 407.3 Occupancy expenses 166.6 160.0 148.5 146.1 149.4 less depreciation, amortisation &
Slide 41: Appendix III: Stores across Australia and New Zealand
Appendix III 327 stores across Australia and New Zealand1 Group store reconciliation rsonal use only HY24 FY23 Opened Converted Closed Total 1 Australia 2 JB HI-FI 140 2 (1) (2) 139 23 JB HI-FI HOME 62 2 1 - 65 14 40 202 4 - (2) 204 23 New Zealand 5 JB HI-FI 14 3 - - 17 JB HI-FI HOME - - - - - 12 30
Slide 42: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is general background information about JB Hi-Fi Limited (ACN 093 220 136) (JB Hi-Fi) and its rsonal use only activities current as at the date of the presentation, 12th February 2024. It is information given in summary form and does