This article is from the Australian Property Journal archive
THE increased household spend on electronics, home entertainment and whitegoods during the pandemic has propelled Harvey Norman to a 116% increase in first half profit.
The retailer posted a post-tax profit of $462 million and interim dividend was bumped up to 20c per share, from last year’s 12c.
Revenue increased 25.8% to $5.12 billion.
It said positive momentum had carried into 2021, with sales revenue by 21% to February 23 on the same period last year.
“The solid results delivered this half is a testament to the strength and resilience of the integrated retail, franchise, property and digital strategy and its ability to adapt and transform to the changing retail landscape and continue to navigate the uncertainties presented by COVID-19,” chairman Gerry Harvey said.
“Pleasingly, customers continued to engage strongly with our brands and importantly, as we are in the lifestyle / home retail space, the customer was appreciative of the shopping experience, spaciousness and easy parking at the physical franchised complexes and stores, whilst embracing the ease of connection to our brands digitally and the important convenience of home delivery and contactless click and collect.”
Same store growth was 27.5% at its Australian locations.
Harvey Norman, which owns many of its stores and holds a $3.1 billion property portfolio, said its balance sheet “continues to prove its strength, anchored by real property assets and a strong working capital position”.
The value of net assets increased 13.9% to $3.74 billion. Property revaluations in the period totalled $36.32 million, up from $20.28 million in the prior corresponding period.
Harvey Norman has been criticised for holding on to JobKeeper subsidies paid over the course of the pandemic, despite recording surges in sales and profits. Gerry Harvey again rebuked the suggestion of paying back money to the federal government. The company received $3.6 million in JobKeeper payments during the half, which was entirely passed on to employees.
It is now in a net cash position of $21.75 million, having been held net debt of $553.23 million one year earlier.
