JB Hi-Fi posts first NZ profit in five years

JB Hi-Fi's New Zealand stores have reported their first operating profit in five years with annual pre-tax earnings of AUS$3.6m.

The Victorian-based company said local sales increased by 18%, reaching $222.2m from $188.7m last year.

After reporting losses of $1.6m twelve months earlier, the group's net profit fell 4.6% to $104.6m while sales rose 5.7% to $3.13bn.

‘‘Our market share continues to grow with new stores performing well and online sales growing strongly," said Terry Smart, JB Hi-Fi CEO.

‘‘Challenging trading conditions have driven competitors with higher cost bases out of the market, enabling JB Hi-Fi to continue to grow both its store network and market share.

‘‘We are very well-positioned for any rebound in consumer spending.”

The company said the upcoming sale of Dick Smith Electronics contributed to the decline in group profit but expects to lift group sales 5.5% to $3.3bn in 2013 with the opening of 16 new stores across the country.