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JB Hi-Fi lifts profit, says more to come

Stuart Condie
JB Hi-Fi says a successful tax-time promotional period has helped it lift sales and profit

JB Hi-Fi shares have surged after the electronics and whitegoods retailer lifted full-year profit 7.1 per cent to $249.8 million and tipped more to come.

The firm said on Monday that revenue for the 12 months to June 30 rose 3.5 per cent to $7.1 billion, with Australian stores the stand-out performers as customers splashed the cash at end-of-tax-year promotions.

Chief executive Richard Murray said games, smart home devices and fitness devices performed strongly as the group's largest business lifted sales 4.1 per cent to $4.73 billion.

"It was a solid result for JB Hi-Fi Australia and a particularly pleasing finish to FY19 with strong sales in the key tax-time promotional period," Mr Murray said.

Comparable Australian sales rose 2.8 per cent and the only downside to the June success was, chief financial officer Nick Wells said, that JB Hi-Fi started the 2020 financial year low on some stock.

July sales suffered as a result but JB-Hi-Fi has nonetheless flagged FY20 group sales of $7.25 billion - an increase of about 2.2 per cent.

JB Hi-Fi shares surged as much as 13 per cent at the start of trade before giving up some of the gains.

At 1046 AEST, they were $1.665, or 5.95 per cent, higher at $29.625.

The Good Guys whitegoods chain lifted sales 2.2 per cent to $2.25 billion, while New Zealand JB-Hi-Fi stores increased sales 2.0 per cent - and 8.2 per cent on a comparable basis - to $NZ236.2 million.

JB Hi-Fi hiked its final dividend by 5.0 cents to 51 cents, fully franked.

JB HI-FI'S SOLID FY19

* Revenue up 3.5pct to $7.095b

* Net profit up 7.1pct to $249.8m

* Final dividend up 5.0 cents to 51 cents, fully franked.