Shares in JB Hi-Fi hit a record $74.54 on Monday morning following two significant market announcements.
Shares in JB Hi-Fi hit a record $74.54 on Monday morning following two significant market announcements.
The company eventually closed trade at $72.98, up 8 per cent.
Aside from releasing its 2024 full-year results, Terry Smart-led JB announced it had acquired Victoria-based bathroom, kitchen and laundry products provider e&s.
It also rewarded shareholders, declaring a special dividend of 80 cents per share, fully franked.
Under the e&s transaction, funded through its existing cash reserves, JB acquired a 75 per cent stake in the company courtesy of a cash consideration package of $47.8 million.
The deal is expected to be finalised next month, with e&s managing director Rob Sinclair to remain in his role.
A put-and-call option has also been implemented, should JB wish to secure the remaining 25 per cent in September 2029.
The home entertainment provider’s net profit after tax for the 2024 financial year fell by 16.4 per cent, from $524.6 million to $438.8 million. Total sales dipped by 0.4 per cent, from $9.62 billion to $9.59 billion.
“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-prices best value proposition," Mr Smart said.
JB’s total ordinary dividend for the 2024 financial year was 261 cents per share – representing 65 per cent of its NPAT – with its final dividend 103 cents per share, fully franked.
The company said the combined final and special dividend would result in approximately $200 million being circulated amongst its shareholders, which will be paid on September 6.
Of note, total sales across JB’s operations in Australia increased by 1 per cent to $6.61 billion, on the back of purchase growth primarily from cameras, small appliances and mobile phones.
