JB Hi-Fi has lifted its full year profit more than 10 per cent after growing sales and improving its profit margins.

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 excludes 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.

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,” Richard Murray, CEO, said.

But, 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.

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.

AAP