Australian electronics retailer JB Hi-Fi said annual underlying profit rose 12.3 per cent, beating expectations, as it took into account a full year's contribution from its home appliances business.
Net profit, excluding significant items, for the year ended June 2018 was $233.2 million, compared with an average expectation of $230.41 million, according to 12 analysts polled by Reuters.
The company reported an underlying net profit of $207.7 million last year.
Full-year gross profit for its home appliances business The Good Guys came in at $426.1 million, a 59.2 per cent jump, despite a fall in its gross margin reflecting strong online competition and weak consumer sentiment in Australia.
The company had cut its full-year net profit after tax forecast in May to $230 million from $235 million to $240 million, citing lacklustre performance by Good Guys.
JB Hi-Fi and larger players like Harvey Norman have been taking a hit after e-commerce giant Amazon’s launch in Australia in December 2017.
Weak wage growth and high levels of household debt have affected Australian shoppers, though wallets eased open a tad last quarter, the best for retail spending in a year.
JB Hi-Fi reported a 21.8 per cent rise in total sales to $6.85 billion, compared with $5.63 billion a year ago. For the 2019 financial year JB expects sales of about $7.1 billion, it said.
JB Hi-Fi declared a final dividend of 46 Australian cents per share, same as last year.
(Reporting by Susan Mathew in Bengaluru; Editing by Stephen Coates)