KEY POINTS:
MELBOURNE - Retailer JB Hi-Fi says it expects to have another strong year despite the uncertain retail environment, after posting net profit for the first half of fiscal 2009, up 40.8 per cent.
"Sales in January and February to date have met internal expectations," the company said yesterday. "Whilst the retail outlook is less certain than previous reporting dates, the company is cautiously optimistic that it will have another strong year and confirms its previous guidance that sales will be circa A$2.35 billion or a 28 per cent increase on the prior financial year."
JB Hi-Fi yesterday reported a net profit for the first half of the 2008/09 financial year of A$59.04 million, up 40.8 per cent on the previous corresponding period. Revenue for the six months to December 31, 2008, rose 27.6 per cent to A$1.26 billion.
The company declared an interim dividend of 15c per share, up from 10c in the previous corresponding period.
Comparable store growth for the period was 11.1 per cent, and margins remained stable at 21.4 per cent despite discounting by competitors. Costs fell to 13.42 per cent, from 14.33 per cent.
JB Hi-Fi said sales in almost all categories had been solid, culminating in a strong Christmas trading period.
"We are extremely pleased with this very strong result, having traded well during what is considered to be the weakest economic climate for many years," chief executive Richard Uechtritz said.
"JB has proven to be resilient during this period, with home entertainment becoming more of a staple category.
"We continue to grow our market share as recently opened stores mature, we open new stores, expand our offering and reduce our prices on the back of increased economies of scale and a continued focus on costs."
The company said it expected to open seven new stores in the second half, after opening 14 in the first half.
It has 101 stores in Australia and New Zealand and is targeting 150.
The company renewed its debt facilities in December for three years and said it had an ability to take advantage of any growth opportunities that may arise in the current weak economic climate.
- AAP
