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JB Hi-Fi lifts sales and profit

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Electronics retailer JB Hi-Fi has lifted its half-year profit more than 10 per cent on stronger sales and improved margins.

JB Hi-Fi made a net profit of $90.3 million for the six months to December 30, up from $82.1 million for the same time last year.

Total sales were up 6.8 per cent over the six months, to $1.94 billion. Comparable sales growth was up 2.8 per cent.

Meanwhile, the retailer lifted its gross margin 11 basis points to 21.6 per cent, although its cost of doing business rose slightly from 13.8 per cent to 13.9 per cent.

The retailer announced a fully-franked interim divided of 55 cents, up from 50 cents a year ago.

Chief executive Terry Smart said the company expects its full year net profit to be between $126 million and $129 million, with annual sales growth of between six and eight per cent.

He said the company was continuing to open new stores and expand its market share.

“JB HI-FI has a proven track record of successfully entering new categories to continually grow and expand the business and we see the $4.6 billion home appliances market as another significant new category growth opportunity for us moving forward,” he said.

Smart said he was pleased by the group’s ability to leverage the power of its brand and adapt to the “ever changing retail landscape.”

“We have seen positive comparable sales across the majority of our hardware categories, the successful introduction of home appliances and strong growth in our commercial division,” he said.

“Gross margins also improved and costs continued to be well controlled, all contributing to solid NPAT growth for the half year.”

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