JB Hi-Fi has lifted its full-year profit more than 10 per cent after growing sales and improving its margins.
It didn’t impress investors, however, with the company’s share price tumbling more than 7 per cent from $19.37 to $17.99 in early trade this morning.
The electronics retailer made a net profit of $128.4 million for the year to June 30, 2014, up from $116.4 million a year ago.
Total sales were up five per cent to $3.48 billion.
Comparable sales, which exclude the impact of new store openings, were up two per cent, while the retailer lifted its gross profit margin from 21.5 per cent to 21.7 per cent.
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But JB Hi-Fi started the new financial year on the backfoot, with same store sales in July down 5.5 per cent due to a slide in tablet device purchases, which is expected to continue for the remainder of the first half.
“We anticipate sales in the first half of FY15 will continue to be impacted by reduced tablet sales. However, we are positive about the pipeline of new products to be released and, as a result, we expect solid sales growth for the year,” chief executive Richard Murray said.
But, Mr Murray said, the continued rollout of JB Hi-Fi HOME stores and the expansion of the company’s commercial division would help drive sales and earnings growth.
“These opportunities, combined with the maturation of the 21 stores opened in the last two years and an exciting new product outlook, will drive sales and earnings growth,” he said.
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JB Hi-Fi announced a fully-franked final dividend of 29 cents per share, which takes its full-year dividend to 84 cents per share, up from 72 cents a year ago.
The retailer is the first in a long list of companies to report their full-year results this week; most interest will be centred on the Commonwealth Bank (Wednesday) and Telstra (Thursday).
Bendigo and Adelaide Bank reported its results today, increasing its full-year profit 5.7 per cent after lifting revenue and margins.
The company made a full-year profit of $372.3 million for the year to June 30, up from $352.3 million a year ago.
Underlying cash earnings were up 9.9 per cent to $382.3 million.
Bendigo lifted its net interest margin five basis points to 2.24 per cent during the year, while new loan approvals increased 16 per cent, taking total loans under management to $53.98 billion.
Total income from ordinary activities was up more than six per cent to $1.43 billion.
Managing director Mike Hirst said the bank had focused on managing its balance sheet and margins.
“A five basis point increase in net interest margin is testament to the bank’s value proposition in what is a highly competitive environment,” he said.
“We do not pursue growth for growth’s sake.”
Bendigo announced a fully-franked final dividend of 33 cents, which takes its full-year dividend to 64 cents, up from 61 cents a year ago.
