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Harvey Norman hits record profit in Australia

(Source: Bigstock.)

Harvey Norman has delivered another strong year in spite of the Covid-19 crisis, with total revenue up 15.3 per cent to $9.49 billion, and profit after tax up 75 per cent to $841.4 million.

Earnings at the furniture and homewares business also spiked during the year, growing 54 per cent to $1.45 billion, with Harvey Norman’s Board recommending a payout of a fully-franked dividend of 15 cents per share.

Harvey Norman chairman Gerry Harvey said the solid results were a testament to the strength of the integrated retail, franchise, property and digital strategy the firm relies on, as well as its ability to adapt.

“The results achieved this year demonstrates that customers continue to engage strongly with our brands and feel comfortable and safe shopping in our expansive, spacious company-owned and Australian franchised complexes,” Harvey said.

“[And] we have continued to invest in technology, digital transformation and infrastructure to enable our overseas company-owned stores and Australian franchisees to enhance their ‘Shop Safe’ capabilities and bolster their customer-centric strategies.”

The business’ Australian franchising operations delivered a record profit result of $628.19 million, an increase of 80 per cent from a year prior, while overseas, company-owned stores saw profit up 58 per cent to $240.8 million across the seven countries the business operates in.

Moving into FY22, however, Harvey Norman has been hit with rolling lockdowns through most Australian states and territories, with sales for July and August already “impacted”. Things are expected to improve once movement restrictions are eased and customers can alleviate their ‘pent up demand’ for shopping.

Harvey Norman is also facing lockdowns and trading restrictions in New Zealand, which entered a Level 4 lockdown in August, and Malaysia, which was locked down throughout June, July and most of August.

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