Owners of ASX 300 stock Adairs Ltd (ASX: ADH) have woken up to a treat on Monday morning.
The company posted its H1 FY25 numbers, showing 3% growth in sales, and a nearly 10% growth in net profit. And that's nice.
But the Adairs board also declared a 30% increase in its interim dividend compared to this time last year. How's that for beating inflation?
Let's take a closer look.
ASX 300 stock bumps dividend by a third
Adairs put up its H1 FY25 numbers today and posted growth throughout its financial statements.
Sales growth was underscored by a 13% jump in online revenues, driven by its online retailing brand, Mocka, acquired in 2019.
But the standout number was the growth in the ASX 300 stock's dividend, which the board lifted by 30% versus H1 FY24.
That means every one percent change in revenues and profits translated to a ten percent change in the company's dividend this half (30% / 3% = 10%).
Shareholders will receive 6.5 cents for every Adairs share they own as part of the payout. That's 1.5 cents more than this time last year.
Here are the important details, per the company:
The Record Date for the dividend will be 11 March 2025, and payment will be made on 3 April 2025.
The Board has determined that the Dividend Reinvestment Plan (DRP) will remain active for the FY25 interim dividend and that the key features will remain unchanged. DRP shares will be sourced from an issue of new shares at a 1.5% discount to the VWAP of Adairs ordinary shares over a five-day pricing period (13-19 March 2025, inclusive).
DRP elections must be received by no later than 5pm (Melbourne time) on 12 March 2025 to be effective.
If there is no change in the ASX 300 stock's closing price of $2.88 apiece last Friday, the interim dividend equates to a 2.2% dividend yield.
According to CommSec, the consensus of analyst estimates projects Adairs to pay a 13 cents per share annual dividend for FY25.
This translates to a 4.5% forward yield at the same share price.
What else happened during the half?
In addition to the dividend growth, Adairs shuffled up its leadership suite, with Elle Roseby appointed as the new Group CEO and Managing Director.
The ASX 300 stock also said its Mocka business had "re-platformed" its Australia and NZ websites, paving its "omni-channel strategy".
Mocka also had a trial run of wholesale products to "a major national retailer" in the ANZ region.
Adairs said the brand will look to have its first standalone store by FY26.
New CEO Elle Roseby said Adairs had a "strong financial performance" during the first half.
In my short time in the role, I have spent most of my time in the Adairs business and have been impressed by our team's positive culture, talent, and deep customer insight. At a Group level, our brands are distinct, well-established and supported by incredibly committed teams. We have solid foundations for each of our businesses that provide a platform to move from 'good to great'.
Meanwhile, the ASX 300 stock expects a mixed outlook for its business lines in the second half.
On the one hand, management expects "sales to continue to maintain positive momentum", with plenty of inventory on hand.
That said, it also reckons the Focus on Furniture division is "to remain challenging", as the brand deals with ongoing pressures in Victoria, and a "lower opening order book" at the end of 2024.
Adairs share price takeout
It's been a good year so far for this ASX 300 stock, and now shareholders are treated to a tasty bump in dividends.
Zooming out over the past year, the stock is up nearly 57%.
