BREAKING NEWS: Harvey Norman Delivers Record Sales & Profits
Harvey Norman has reported a 15.1% increase in sales and a 19.4% increase in profits, the big retailer also delivered a record EBITDA of $944.67 M up 37.2% or $256.07M
The largest growth came from their franchised network of stores with the company reporting revenue of $8.23 billion, up 7.6 per cent on the previous year,
Due to COVID-19 the retailer has also announced that they have scaled back their International expansion plans
After initially planning to open 21 new stores overseas by the end of the 2021 financial year the Company has revised their plans and will now only open 12 new stores overseas.
The retailer who has assets of $5.83 billion, including tangible freehold property assets of over $3 billion said that 2020 had been a challenging year and that a major contributor had been the growth achieved by franchisees.
During FY20, the franchising operations segment was the largest contributor to PBT comprising 52.7% of PBT compared to 43.2% of PBT in FY19.
Profitability of the franchising operations segment increased by $100.19 million or +40.3%, directly attributable to the growth in aggregated franchisee sales revenue to $6.16 billion in FY20, an increase of $505.65 million or +8.9%, fuelled by growth in the 2nd half of FY20, particularly in 4Q20.
Management said that the recent drought and bushfires last summer, followed by COVID-19, had a significant impact in the 8 countries where their franchisees, trade.
Overseas in the 7 countries in which the Company operated, the respective governments mandated temporary closures of between 4 to 10 weeks, and staggered re-opening dates.
“As our company-operated stores overseas began to re-open to the public, sales improved quickly” the Company reported.
The Company reported a record EBITDA of $742.47m, up by $124.18m or +20.1%.
Earnings before interest & tax (EBIT) came in at $721.08m, up by $117.74m or +19.5%.
Reported profit before tax (PBT) of $661.29m, up by $86.73m or +15.1% from prior year, our highest ever PBT on record.
Management said that COVID-19 has been a fast evolving and a significant challenge globally, and governments have supported their economies during this extraordinary time.