Key Highlights

• Michael Hill International (ASX:MHJ) goes ex-dividend on 7 September 2026; shareholders on the register by end of trading on Friday 4 September are entitled to a $0.02 final Dividend per share, unfranked, payable 22 September 2026 at a 50% payout ratio.

• The dividend marks the restoration of Shareholder payments after FY25 saw no final dividend declared, underpinned by a 57% rise in comparable EBIT to $24.0 million and statutory NPAT of $10.0 million — up 376% on the prior year's $2.1 million.

• Group Revenue reached a record $655.7 million in FY26, up 1.9% on FY25 (4.1% in constant currency), with same store sales growth of 3.0% across all three operating markets — Canada, Australia, and New Zealand.

• Group net Debt declined by $36.3 million to $5.5 million as at 28 June 2026, compared with $41.9 million at the same point in FY25, reflecting improved cash generation from the turnaround programme.

Michael Hill International Limited (ASX:MHJ) goes ex-dividend on Monday, 7 September 2026, with shareholders who hold the stock on the register at close of trading on Friday 4 September entitled to a $0.02 final dividend per share, payable on 22 September 2026. The payment — declared at a 50% Payout Ratio — marks the restoration of Michael Hill's dividend programme after no final dividend was declared in FY25, representing a meaningful signal from the Board that the business's turnaround has reached a sufficient level of financial stability to resume shareholder returns. Investors tracking the ex-dividend date should note that shares purchased on or after Monday, 7 September, will not carry entitlement to this payment.

Record Revenue Anchors Dividend Reinstatement

Michael Hill reported record group revenue of $655.7 million for the financial year ended 28 June 2026, representing growth of 1.9% on the prior year's $643.7 million, or 4.1% on a constant currency basis. The constant currency figure strips out the effect of unfavourable Exchange Rate movements, which compressed reported Australian dollar results particularly in the Canadian and New Zealand segments during FY26. Same store sales (SSS) growth — a key operating metric for retail businesses that measures performance on a like-for-like store basis — came in at 3.0% for the Group overall, accelerating to 5.2% on a constant currency basis.

Canada was the standout performer, delivering SSS growth of 7.0% on prior year — described as another record performance for that market. Australia followed with SSS growth of 4.8%, while New Zealand delivered growth of 3.6% following a marked acceleration from the second quarter of FY26. The broad-based nature of the SSS recovery across all three markets is a positive characteristic of the FY26 result, suggesting the turnaround is not geographically concentrated.

EBIT and Profitability: A Material Step Up

Comparable EBIT — a measure of operating Earnings before interest and tax calculated on a consistent basis — reached $24.0 million in FY26, up 57% from $15.3 million in FY25. The improvement reflects both the revenue growth and meaningful cost discipline: the Cost of Doing Business (CODB) as a percentage of revenue declined 70 basis points to 57.1% from 57.8% in FY25, indicating that Operating Leverage is being generated as the Group scales revenue through its existing store network.

Gross Margin was held flat at 60.5%, which the Company described as demonstrating the Group's ability to offset elevated precious metal costs — a relevant backdrop given the broad appreciation in gold prices over the period. Maintaining gross margin while managing rising input costs is a meaningful operational achievement for a jewellery retailer with significant gold and diamond procurement requirements.

Statutory Net Profit After Tax (NPAT) reached $10.0 million, compared with $2.1 million in FY25 — a 376% increase. Statutory NPAT includes accounting items and one-off adjustments beyond the comparable EBIT figure, and the scale of the year-on-year change reflects the low base established by FY25's near-breakeven performance.

Balance Sheet Improvement and Online Channel Growth

Group net debt fell from $41.9 million at the end of FY25 to $5.5 million as at 28 June 2026 — a $36.3 million improvement achieved through a combination of positive cash generation and inventory discipline. Group inventory levels reduced by $9.4 million to $189.7 million, a 4.7% reduction on the prior year, reflecting more targeted stock management across the network. Online sales grew to represent 8.7% of total sales during FY26, a channel that carries different margin and cost dynamics from the bricks-and-mortar store base and that the Company appears to be deliberately building.

Conclusion

Michael Hill International's (ASX:MHJ) ex-dividend date of 7 September 2026 arrives against the backdrop of a year that demonstrated a credible operating recovery across revenue, earnings, and the balance sheet. The $0.02 final dividend at a 50% payout ratio is modest in absolute terms but carries symbolic weight as the first reinstated final dividend following FY25's nil payment. The breadth of the SSS recovery across Canada, Australia, and New Zealand, the reduction in net debt, and the 57% rise in comparable EBIT provide context for the Board's decision to recommence distributions. Whether the momentum carries into FY27 will be the key question for investors after the ex-dividend date passes.