The dividend was also increased in the period.
MHI reported earnings before interest and tax of $45.64 million for the period, up 28.3% on the pcp.
Revenue was up 10.3% at $489.3 million and the after-tax profit of $34.5 million was up nearly 33% on the pcp.
Craigs Investment Partners broker Chris Timms said the result was outstanding for the listed jewellery company.
"The same-store sales are up 9.2%, which means they are getting strong growth off existing operations."
Asked for highlights, Mr Timms said the increased operating cash flow and reduced debt were important to a company like MHI.
The cash flow had improved three and a-half times to $43.3 million and the equity ratio had improved to 61%.
MHI could use the improved cash flow to open new stores or further pay down debt, he said.
The final dividend of 3c per share was up 20% and the total dividend of 4.5% was up 12.5% on the pcp.
The company had a total of 240 stores open at June 30.
Chairman Sir Michael Hill said the company had witnessed a good top-line sales recovery after some difficult years of trade since October 2008.
However, the retail sector remained difficult in all markets and increased investment in marketing, consumer payment plans and inventory levels was required to achieve the gains on the sales line.
A continued focus on the diamond bridal business reaped benefits for the group as average sale value continued to grow.
The decision to downsize the United States operations from 17 stores to nine in June last year was vindicated with good same-store sales growth over the 12 months, and all nine stores had been refurbished in the latest Michael Hill design, he said.
During the year, the company continued the roll-out of the fifth-generation store design.
Sixty stores were now trading in the new design and those stores had shown stronger sales growth than the non-refurbished stores in each market, Sir Michael said.
