JB Hi Fi today announced a record 60.23% rise in net profit for the six months ended December 31 2007, largely due to increased demand for flat-screen TVs, iPods and MP3 players.
The home electronics retailer reported net profit of $41.94 million, up from $26.2 million the year previous, from $989 million in sales, up from $659 million.
JB also announced an interim dividend of 10c per share fully franked, up from no interim dividend in the prior corresponding period.
The company said both pre and post-Christmas sales were strong as consumers continued to upgrade audio-visual technology, computers and games.
Comparable store growth for the period was 18.8, with 20.1% growth in Australia.
"This reflects the company’s confidence in its ability to consistently generate cash going forward," the company said.
"The profit for the half year exceeded last year’s full year profit of $40.4 million."
JB’s cost of doing business was down 70 basis points (bps) to 14.3% from 15% and the margin in earnings before interest and tax (EBIT) increased 22bps to 6.56 % from 6.34%.
“We are delighted with another great result,” said CEO Richard Uechtritz.
“Our unique and technology-focused retail model continues to perform strongly.”
“We should continue to benefit from strong comparable store sales, maturing of recently opened stores, many new store opportunities, a lower cost of doing business and better buying power.”
Despite the good news, shares in JB Hi Fi closed down by 8.31% or $1.05 at $11.59.
