Though, JB Hi-Fi Ltd., Australian electronics vendor suffered losses in its New Zealand business, it is optimistic that the expansion will be helpful in securing profits.

Today, the Company posted a 26% rise in its full-year profit throughout its businesses, and said that it hopes to increase sales by 17%, in the present financial year. When it was announcing its yearly results in Australia, it said that during the 2011 fiscal year, it will expect profits from its New Zealand business.

In New Zealand, the profit margin was reported to be minus 2.6% and the loss was said to be $NZ2.5m.

New Zealand businesses incurred a loss of $NZ4.4 million before interest and tax. There are 10 JB Hi-Fi stores, out of which, five have been closed down and one Hill and Stewart store was revamped, during the year.

Chief Executive Terry Smart said, "New Zealand continues to show signs of improved trading from the 10 JB stores as we increase our scale, buying power and grow brand recognition".

He added that they are likely to launch three JB stores in Sylvia Park in Auckland, Dunedin, and Bayfair in Mount Maunganui.

The firm intends to have 210 stores throughout Australia and New Zealand.