Australian home entertainment, technology and market-leading CD merchant JB Hi-Fi today revealed a 26% rise in full-year net profit to a record $118.7 million Australian ($109 million), driven by surges in sales for its computers, telecommunications, accessories and visual inventory.

Melbourne-based JB reported a 17% increase in revenue to $2.731 billion Australian ($2.5 billion) for the year ending June 30, 2010. Comparable store sales growth was 4.8%.

JB did not break out its sales of CDs and DVDs, although the company did point out that music and movies was a "principal activity" for its business during the financial year.

Music remains "an important part of the overall business," group CEO Terry Smart tells Speaking ahead of today's full-year preliminary report, Smart explained that music sales "continue to perform well even though the physical side lags the rest of the business in comparative store growth." Smart took the reins as group CEO in May after the incumbent chief Richard Uechtritz stepped aside on May 28 and assumed a consultancy role.

The Australasian group is targeting 210 JB-branded outlets, and plans are to open at least 13 to 15 stores over the next five to six years, until that goal has been reach. Currently, JB operates 141 stores across Australia and New Zealand, of which 130 are JB Hi-Fi branded outlets. The larger figure should rise by a further 18 in full-year 2011.

"We are pleased with this solid result, especially given we were cycling against strong prior year growth driven by the government stimulus packages and low interest rates," comments Smart in a statement issued Monday (Aug. 9) to the Australian Stock Exchange. "While our strong retail model remained very resilient throughout this tough economic period, it's a testament to the strength of our team in not only maintaining, but improving the company's 'best in class performance metrics'."

In a brief but bullish update on the times ahead, JB forecast group sales in full-year 2011 to reach $3.2 billion Australian ($2.9 billion), up 17%. More recently, however, comparative sales were down slightly in July on positive total sales growth across the company. The group acknowledged sales growth in the first half would be "challenging as consumer spending remains subdued."