Electronics and appliance retailer JB Hi-Fi has shrugged off regulator action to post a double-digit sales boost, but its boss is heading for the exit.
The group, which also owns The Good Guys, posted a full-year net profit after tax of $462.4 million, up 5.4 per cent, following group sales of $10.6 billion, a 10 per cent improvement on the year before.
Earnings before interest and tax, a key measure of profitability, rose 7.3 per cent to $649.1 million in the year to June 30.
Sales grew 7.5 per cent to $7.1 billion, with key demand growth in mobile phones, small appliances, computers and games hardware, especially in second half after the release of the Nintendo Switch 2, helping lift gross profit 6.4 per cent to $1.6 billion
The improved result came despite a one-off $13.7 million settlement with the Australian Competition and Consumer Commission over alleged misleading representations of Good Guys' StoreCash and credit offers.
Good Guys total sales increased 6.9 per cent to $2.87 billion for the year, pushing gross profit up 8.2 per cent to $672.4 million.
Group chief executive Terry Smart, who took the opportunity to announce his resignation, said the result was rooted in the group's advantages in scale, its multi-brand strategy and low-cost operating model.
"It has been another strong year of sales and earnings, as we built on the momentum of the previous year," he told investor at an earnings call.
Mr Smart, who joined the company in 2000 and will make way for chief operating officer Nick Wells on October 3, said the decision to exit had been a difficult one.
"I am proud of what we have achieved over the years," he said.
"With the support of the best retail management team in the market, I am sure that the Group will continue to go from strength to strength under Nick's leadership."
Investors appeared less enthused about the leadership shake-up and the Nintendo Switch 2's strong role driving second half sales acceleration, as shares in the group fell 4.8 per cent to $112.11 in early trade.
However, shareholders were well looked after, with the company declaring a final dividend of 105 cents per share and a special dividend of 100 cents per share, both fully-franked, totalling $224 million.
The board also announced a review to the group's capital structure and will increase the dividend payout ratio from 65 per cent to between 70 per cent and 80 per cent of net profit after tax moving forward.
