Home > Latest News > Harvey Norman Rolling In Cash After JobKeeper Payments, Profits Up 113%

Harvey Norman Rolling In Cash After JobKeeper Payments, Profits Up 113%

Harvey Norman has reported a record result from trading during COVID-19 restrictions, with profit before tax up 113% while sales increased by 27%.

Total Company-Operated and Franchisee Sales Revenue rose 25.8% to $5.12bn.

Profit before tax was $643.91 million, an increase of 113.8% from $301.15 million in the previous half year.

Harvey Norman Chairman, Gerry Harvey said “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”.

The Board has recommended the payment of a fully franked interim dividend of 20.0 cents per share, to be paid on
3 May 2021 to shareholders registered on 1 April 2021.

The value of net assets increased 13.9% to $3.74 billion as of 31 December 2020 from $3.28 billion as of 31 December 2019.

Rolling in JobKeeper payments from various Governments including the Australian, and New Zealand Governments Chairman Gerry Harvey said that the business was in a net cash position of $21.75 million on 31 December 2020, compared to a net debt.
position of $553.23 million on 31 December 2019.

He said “The robust cash flows generated from operating activities of over $391 million dollars this half year has enabled us to invest in our businesses and paydown external debt. On 31 December 2020, the consolidated entity had $499 million of unused, available financing facilities, and is well-placed to respond to challenges and capitalise on opportunities as they arise.”

Between 1 January 2021 to 23 February 2021 aggregated sales revenue increased 21% compared to the period 1 January 2020 to 23 February 2020.

Aggregated sales revenue from Harvey Norman company-operated stores in totalled $5.12 billion for the six (6) months ended 31 December 2020 a rise of 25.8% over the same prior period.

In Australia, a new premium-format Harvey Norman franchised complex was opened at Hornsby, NSW on 2nd October 2020 and a small-format Harvey Norman franchised complex at West Wyalong, NSW was closed during the current half year.

More to follow.

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