JB Hi-Fi reports fall in net profit

JB Hi-Fi Ltd has reported a 7.55 per cent decline in full year net profit and says the market is expected to remain challenging in the period ahead.

JB Hi-Fi said net profit for the 12 months to June 30, 2011, came in at $109.70 million, down from $118.65 million the prior corresponding period.

Revenue rose 8.35 per cent to $2.96 billion, the company said on Monday.

The company said it expected 2011/12 "to be another solid year of sales and earnings growth", with sales to be "circa $3.2 billion, an eight per cent increase on the prior year".

"While we anticipate the market will remain challenging, we will continue to focus on driving market share growth through our core strengths of everyday low prices, great people and our low cost of doing business," JB Hi-Fi chief executive, Terry Smart, said in a statement.

"When combined with the opening of 16 stores, the maturing of recently opened stores and our continued online focus, we are well positioned to maximise growth through the next 12 months."

The company said it opened 18 new JB Hi-Fi stores across Australia and New Zealand in 2010/11, with a further four Clive Anthonys stores converted to JB Hi-Fi stores.

"These stores, together with the maturing of the 42 stores opened over the previous two financial years, will continue to drive revenue and earnings growth," JB Hi-Fi said.

A further 16 new stores were expected to be opened in 2011/12, JB Hi-Fi said.

JB Hi-Fi said its full year statutory results included a one-off Clive Anthony restructuring charge of $24.7 million, post tax.

On a normalised basis - with the charge excluded - 2010/11 full year net profit rose 13.3 per cent, the retailer said.

JB Hi-Fi said gross margin was 22 per cent, up from 21.8 per cent a year earlier.

"We are pleased with our results in what was a challenging period for retail," Smart said.

A full franked final dividend of $0.29 per share was declared.

In terms of current trading conditions, JB Hi-Fi said sales in July "remained challenging".

"The Company had positive total sales growth for JB Hi-Fi branded stores of 6.4 per cent, with comparable stores sales negative 3.3 per cent," JB Hi-Fi said on July sales.

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