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Harvey Norman Delivers 26.6% FY Profit Boost

Harvey Norman Delivers 26.6% FY Profit BoostHarvey Norman’s net profit after tax of $268.1 million was up from last year’s $211.7 million, while excluding for the effects of net property re-evaluation adjustments profit was up 19 per cent to $261.84 million.

Global sales rose 4.3 per cent to $6.02 billion, increasing 4.6 per cent on a like-for-like basis.

“This is a good result that once again demonstrates the  strength  of our integrated retail, franchising, property and digital system,” Harvey stated on release of the results.

“In what is still a generally challenging retail  environment, we have seen further improvement in the performance of each of our business segments.”

The fourth quarter also saw a 10th consecutive quarter-on-quarter increase in Australian franchisee sales on a like-for-like basis, Harvey added.

Like-for-like Australian franchisee sales revenue increased 4.5 per cent to $4.92 billion for the year, with Harvey stating strong growth in franchisee sales has enabled the further reduction of “tactical support to  franchisees”.

“While maintaining our investment in the Harvey Norman brand, tactical support has decreased by  approximately 20 per cent in each of the past two years,” he commented.

Meanwhile, franchise sales turnover is off to a positive start in the 2016 financial year.

“The outlook for the property market in Australia remains positive, particularly new starts, renovation  expenditure, and secondary market clearance rates; franchisees’ market-leading position in the homemaker category positions them to continue taking market share and delivering strong performance,” Harvey stated.

“With franchisee sales turnover for the period 1 July 2015 to 27 August 2015, up 5.5 per cent on a headline basis and 6.6 per cent on a like-for-like basis on the corresponding prior year period, I remain positive about the outlook for Harvey Norman.”