Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2024 Earnings Presentation
44 slides from Jb Hi-fi's earnings presentation, Aug 12, 2024
Slide 1: JB Hi-Fi Limited FY24 Results Presentation
rsonal use only JB Hi-Fi Limited FY24 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 FY25 Trading Update 7. Acquisition of e&s 8. Group Focus Areas 9. Investment Checklist Terry Smart Nick Wells Group CEO Group CFO JB HI-FI LIMITED PAG
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+ O
Slide 5: Group Model: 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 ▪ Strong and engaged supplier ▪ Constant focus on productivity and ▪ Focus on providing the customer with an ▪ Knowledgeable and passionate relati
Slide 6: Generating sustainable long-term growth
Generating sustainable long-term growth The Group today released its FY24 Sustainability Report outlining our commitment to having a positive impact on our people, our community and our environment rsonal use only Sustainability Policy focus areas FY24 Progress Our People ▪ Continued to improve gend
Slide 7: Group FY24 Performance
Group FY24 Performance FY24 Group Performance rsonal use only AUD FY24 FY23 Growth Total sales ($m) 9,592.4 9,626.4 (34.0) (0.4%) ▼ Earnings before interest and tax ($m) 647.2 769.0 (121.8) (15.8%) ▼ Net profit after tax ($m) 438.8 524.6 (85.8) (16.4%) ▼ Earnings per share (basic ¢) 401.4 479.9 (78
Slide 8: Group FY24 Performance
Group FY24 Performance FY24 Group Performance rsonal use only FY24 FY23 Growth $m % Sales ($m) - JB HI-FI Australia 6,609.9 6,546.1 63.8 1.0% ▲ - JB HI-FI New Zealand (NZD) 327.9 292.1 35.9 12.3% ▲ - The Good Guys 2,679.1 2,813.0 (133.9) (4.8%) ▼ Total Sales (AUDm) 9,592.4 9,626.4 (34.0) (0.4%) ▼ EB
Slide 9: JB HI-FI Australia
rsonal use only 2. JB HI-FI Australia
Slide 10: JB HI-FI Australia FY24 Performance
JB HI-FI Australia FY24 Performance rsonal use only AUD FY24 FY23 Growth Sales ($m) 6,609.9 6,546.1 1.0% ▲ Gross Profit ($m) 1,467.8 1,481.4 (0.9%) ▼ Gross Margin (%) 22.21% 22.63% (42 bps) ▼ Cost of Doing Business (%) 12.61% 12.07% +54 bps ▲ EBITDA ($m) 634.1 690.9 (8.2%) ▼ EBITDA Margin (%) 9.59%
Slide 11: JB HI-FI Australia FY24 Sales
JB HI-FI Australia FY24 Performance FY24 Sales rsonal use only SALES GROWTH BY QUARTER ▪ Total sales increased by 1.0% to $6.61 billion, with comparable sales up 0.6%, driven by continued customer demand for technology and Total consumer electronics products, and supported by well-executed Black 2.6
Slide 12: JB HI-FI Australia FY24 Earnings
JB HI-FI Australia FY24 Performance FY24 Earnings rsonal use only EBIT ▪ Gross profit decreased by 0.9% to $1.47 billion with gross margin down 42 bps to 22.2%, driven by sales mix and increased levels of on-floor discounting ▪ CODB was 12.6%, up 54 bps, and in absolute terms grew 5.5%, with discipl
Slide 13: JB HI-FI New Zealand
rsonal use only 3. JB HI-FI New Zealand
Slide 14: JB HI-FI New Zealand FY24 Performance
JB HI-FI New Zealand FY24 Performance rsonal use only NZD FY24 FY23 Growth Sales ($m) 327.9 292.1 12.3% ▲ Gross Profit ($m) 55.5 46.7 18.8% ▲ Gross Margin (%) 16.93% 16.00% +93 bps ▲ Cost of Doing Business (%) 15.59% 14.18% +141 bps ▲ EBITDA ($m) 4.4 5.3 (17.1%) ▼ EBITDA Margin (%) 1.35% 1.82% (48 b
Slide 15: JB HI-FI New Zealand FY24 Sales
JB HI-FI New Zealand FY24 Performance FY24 Sales SALES GROWTH BY QUARTER rsonal use only 25.6% Total ▪ Total sales increased by 12.3% to NZD327.9 million, with comparable sales up 1.6% Comp ▪ The key growth categories were Mobile Phones, Audio, Games Hardware, IT and Small Appliances. Software sales
Slide 16: JB HI-FI New Zealand FY24 Earnings
JB HI-FI New Zealand FY24 Performance FY24 Earnings UNDERLYING EBIT 1 rsonal use only ▪ Gross profit increased by 18.8% to NZD55.5 million with gross margin up 93 bps to 16.9%, an improvement off a low base in the $6.0m $4.7m pcp ▪ CODB was 15.6%, up 141bps. In absolute terms CODB grew 23.4% ($1.2m)
Slide 17: The Good Guys
rsonal use only 4. The Good Guys
Slide 18: The Good Guys FY24 Performance
The Good Guys FY24 Performance rsonal use only AUD FY24 FY23 Growth Sales ($m) 2,679.1 2,813.0 (4.8%) ▼ Gross Profit ($m) 621.2 658.4 (5.6%) ▼ Gross Margin (%) 23.19% 23.40% (22 bps) ▼ Cost of Doing Business (%) 14.00% 12.83% +117 bps ▲ EBITDA ($m) 246.1 297.4 (17.3%) ▼ EBITDA Margin (%) 9.19% 10.57
Slide 19: The Good Guys FY24 Sales
The Good Guys FY24 Performance FY24 Sales SALES GROWTH BY QUARTER rsonal use only ▪ Total sales decreased by 4.8% to $2.68 billion, with comparable Total sales down 4.8% 3.8% 3.8% Comp ▪ The brand’s core Home Appliance categories remained resilient, (0.8%) (0.8%) with the Consumer Electronics catego
Slide 20: The Good Guys FY24 Earnings
The Good Guys FY24 Performance FY24 Earnings rsonal use only EBIT ▪ Gross profit was $621.2 million with gross margin down 22 bps to 23.2%, driven by increased on-floor discounting ▪ CODB was 14.0%, up 117 bps, and in absolute terms grew 3.9%, with disciplined cost control helping to manage inflatio
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 FY24 FY23 ▪ Inventory was $1.09 billion, up 5.1% or $52.7 million year on year Cash 317.7 177.3 Receivables 135.1 146.5 ▪ Inventory turnover was up 14 bps to 7.0x (FY23: 6.8x) Inventories 1,093.6 1,040.9 Other 39.9 34.6 ▪ Pay
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 FY24 FY23 FY24 FY23 EBITDA 884.3 993.2 Fixed Charge Ratio 3 3.9x 4.5x 3 Change in working capital 40.2 5.0 Interest Cover 327.3x 170.9x Net interest received / (paid) on borrowings 9.3 0.7 G
Slide 24: Capital Management
Group Balance Sheet and Cash Flow Capital Management FY24 ORDINARY DIVIDEND OF 261 CPS & rsonal use only ▪ The final dividend is 103 cents per share (cps) fully franked, down 12 cps SPECIAL DIVIDEND OF 80 CPS or 10.4% 80cps ▪ The total ordinary dividend for FY24 was 261 cps, down 51 cps or 16.3%, an
Slide 25: Group FY25 Trading Update
rsonal use only 6. Group FY25 Trading Update
Slide 26: July 2024 sales update
Group FY25 Trading Update July 2024 sales update rsonal use only JULY SALES GROWTH The Group provides the following sales update for the period 1 July Total 2024 to 31 July 2024 12.2% Comp ▪ Total sales growth for JB HI-FI Australia was 5.6% with comparable sales growth of 5.2% ▪ Total sales growth
Slide 27: Acquisition of e&s
rsonal use only 7. Acquisition of e&s
Slide 28: Acquisition of e&s
Acquisition of e&s The Group has entered into an agreement to acquire e&s, a highly complementary premium home appliance retailer rsonal use only ▪ Established in 1962 by the Sinclair family ▪ Premium offering across the kitchen, laundry and bathroom product segments ▪ 10 showrooms in Victoria and O
Slide 29: Group Focus Areas
rsonal use only 8. Group Focus Areas
Slide 30: Group Focus Areas
Group Focus Areas The Group continues to leverage and evolve its unique offer and capabilities rsonal use only Group Focus Areas FY25 Actions ▪ Enhance Visual Merchandising: Refine and improve in-store visual merchandising practices to ensure an engaging shopping experience ▪ Improve Conversion Rate
Slide 31: Group Focus Areas
Group Focus Areas The Group continues to leverage and evolve its unique offer and capabilities rsonal use only Group Focus Areas FY25 Actions Commercial growth ▪ Expand Customer Base: Continue to grow our active customer base across corporate, government, and education sectors ▪ Leverage new AI Devi
Slide 32: Investment Checklist
rsonal use only 8. Investment Checklist
Slide 33: 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 34: Appendices
ppendices <x Ajuo asn jeuosia
Slide 35: Group Profit and Loss – Breakdown
Appendix I Group Profit and Loss – Breakdown rsonal use only FY24 FY23 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 6,609.9 327.9 2,679.1 9,592.4 6,546.1 292.1 2,813.0 9,626.4 (0.4%) ▼ Gross Profit 1,467.8 55.5 621.2 2,140.4 1,481.4 46.7 658.4
Slide 36: 5 year Group Profit and Loss
Appendix II a) 5 year Group Profit and Loss rsonal use only AUDm FY24 FY23 FY22 FY21 FY20 Sales 9,592.4 9,626.4 9,232.0 8,916.1 7,918.9 Gross Profit 2,140.4 2,182.5 2,080.4 1,977.2 1,694.1 Gross Margin 22.31% 22.67% 22.53% 22.18% 21.39% EBITDA 884.3 993.2 1,013.9 961.6 718.0 Depreciation on Fixed As
Slide 37: 5 year JB HI-FI Australia Profit and Loss
Appendix II b) 5 year JB HI-FI Australia Profit and Loss rsonal use only AUDm FY24 FY23 FY22 FY21 FY20 Sales 6,609.9 6,546.1 6,196.5 5,956.8 5,318.9 Gross Profit 1,467.8 1,481.4 1,387.7 1,325.2 1,169.0 Gross Margin 22.21% 22.63% 22.40% 22.25% 21.98% EBITDA 634.1 690.9 681.4 658.5 525.6 Depreciation
Slide 38: 5 year 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 FY24 FY23 FY22 FY21 FY20 Sales 327.9 292.1 262.4 261.6 222.8 Gross Profit 55.5 46.7 45.7 46.6 36.8 Gross Margin 16.93% 16.00% 17.40% 17.83% 16.54% EBITDA 4.4 5.3 12.2 12.3 5.2 Depreciation on Fixed Assets 1.3 0.1 0.5 0.9
Slide 39: 5 year The Good Guys Profit and Loss
Appendix II d) 5 year The Good Guys Profit and Loss rsonal use only AUDm FY24 FY23 FY22 FY21 FY20 Sales 2,679.1 2,813.0 2,789.4 2,715.7 2,388.8 Gross Profit 621.2 658.4 649.9 608.6 490.2 Gross Margin 23.19% 23.40% 23.30% 22.41% 20.52% EBITDA 246.1 297.4 321.1 291.7 187.4 Depreciation on Fixed Assets
Slide 40: 5 year Group Balance Sheet
Appendix II e) 5 year Group Balance Sheet rsonal use only AUDm FY24 FY23 FY22 FY21 FY20 Cash 317.7 177.3 125.6 263.2 251.5 Receivables 135.1 146.5 132.6 102.8 220.3 Inventories 1,093.6 1,040.9 1,135.3 938.8 739.3 Other 39.9 34.6 31.2 35.7 34.7 Total Current Assets 1,586.3 1,399.3 1,424.7 1,340.5 1,2
Slide 41: 5 year Group Cash Flow
Appendix II f) 5 year Group Cash Flow rsonal use only AUDm FY24 FY23 FY22 FY21 FY20 EBITDA 884.3 993.2 1,013.9 961.6 718.0 Change in working capital 40.2 5.0 (119.4) (241.0) 402.1 Net interest received / (paid) on borrowings 9.3 0.7 (0.6) (1.7) (10.4) Interest on lease liabilities (29.2) (21.9) (18.
Slide 42: Group CODB reconciliation
Appendix II g) 5 year Group CODB reconciliation rsonal use only AUDm FY24 FY23 FY22 FY21 FY20 Other income (ex interest revenue) (1.8) (3.2) (2.2) (1.3) (2.5) Sales and marketing expenses 1,039.1 978.3 881.1 845.8 809.2 Occupancy expenses 328.0 321.8 302.8 293.6 313.7 less depreciation, amortisation
Slide 43: Group store reconciliation
Appendix III 330 stores across Australia and New Zealand1 Group store reconciliation rsonal use only FY24 FY23 Opened Converted Closed Total 1 Australia 2 23 JB HI-FI 140 4 - (3) 141 JB HI-FI HOME 62 2 - - 64 14 41 202 6 - (3) 205 23 New Zealand 5 JB HI-FI 14 5 - - 19 13 30 JB HI-FI HOME - - - - - 1
Slide 44: 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 August 2024. It is information given in summary form and does no