Consumer electronic retailer JB Hi-Fi Ltd reported an 11.2 per cent lift in the group’s full-year net profit today.
In the year to June 30, JB Hi-Fi’s net profit was $116.4 million, up from the $104.6 million recorded in 2012.
Revenue for the year rose 5.77 per cent to $3.308 billion.
In its full year results statement JB Hi-Fi said it expected sales growth this financial year of between 6 per cent and 8 per cent.
The group said new products such as UHD TV and gaming consoles will continue to drive growth in the consumer electronics market.
JB Hi Fi flagged the opening of 12 new stores in the year ahead, while 10 existing stores will be converted to the JB Hi-Fi Home concept.
The group declared a fully-franked final dividend of 22 cents adding to its interim dividend of 50 cents.
Shares in the retailer opened at $18.52 and rose sharply to $19.02 by midday.
Online sales jumped with unique visitors to the group’s the websites increasing 24.1 per cent over the previous year to an average of 1.15 million per week in FY13.
“A new JB Hi-Fi website will be launched in the first half of FY14 which will enhance the customer experience via improved search functionality and richer product information,” the statement said.
“We continue to evolve and innovate our model, ensuring we not only remain relevant to our existing customers but gain new sales opportunities for now and into the future,” JB Hi Fi CEO Terry Smart said.
“Our recent entry into the home appliance market has shown early success.”
In other news from the consumer electronics sector, David Jones Limited (DJS) today announced that it has entered into a Retail Brand Management Agreement (RBMA) with Dick Smith Electronics Pty Ltd (Dick Smith).
Under the agreement Dick Smith will, as of 1 October 2013, operate the existing David Jones electronics business under the banner “David Jones Electronics Powered by Dick Smith”.
Products covered by the RBMA include televisions, computers, tablets, home office, audiovisual and other digital products (Electronics).
Whitegoods and Small Appliances are not covered by the RBMA and will continue to be operated by David Jones.
Dick Smith will pay David Jones a fixed percentage of the sales generated by the David Jones Electronics business.
This payment has been underwritten by Dick Smith to ensure that David Jones will throughout the term of the arrangement receive a minimum payment each year regardless of sales volumes.
The initial term of the agreement is three years with three subsequent 12 month options to renew.
