JB Hi-Fi profits soar 26pc

Photo / Brett Phibbs

SYDNEY - Electronics retailer JB Hi-Fi has reported a 26 per cent increase in full-year profit, and says it expects to grow sales by 17 per cent in the current year.

JB Hi-Fi reported net profit in 2009/10 of $A118.7 million ($NZ149m), up from $A94.438 million in 2008/09.

JB declared a final dividend of 33 cents, fully franked, taking total dividends for the year to 66 cents, fully franked.

JB Hi-Fi said it expected "FY11 to be another good year of sales and earnings growth.

"The company expects sales in FY11 to be circa $3.2 billion, a 17 per cent increase on the prior financial year."

The company said sales growth had been lifted by computers, telecommunications, accessories and audio visual goods.

"We are pleased with this solid result, especially given we were cycling against strong prior year growth driven by the government stimulus packages and low interest rates," JB Hi-Fi chief executive Terry Smart said in a statement.

"While our strong retail model remained very resilient throughout this tough economic period, it's a testament to the strength of our team in not only maintaining, but improving the company's best in class performance metrics."

In financial year 2010, JB Hi-Fi opened 23 stores, the largest number it ever has opened in a year, and it expected to open a further 18 stores in 2010/11 across Australia and New Zealand.

JB Hi-Fi said overall sales growth in the first month of the 2011 fiscal year was positive.

"Whilst comparable store sales growth was slightly negative, it was a positive trend on the previous month's trading," the company said.

"We expect sales growth in the first half of FY11 to be challenging as consumer spending remains subdued.

"However, our proven unique retail model is best equipped to take advantage of the expected increase in consumer spending in the lead up to the critical Christmas trading period."

Reported revenue from ordinary activities was up 17.4 per cent to $2.731 billion, and gross profit up 18 per cent at $594.174 million.

Earnings per share were 109.74 cents, up 24.3 per cent.