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Harvey Norman’s profits soar

HarveyNorman-Fujifilm_tree installationHarvey Norman has posted a 30 per cent increase in profit of $348.61 million, driven by growth in franchisee sales and its performance in overseas markets.

The furniture and consumer electronics retailer said its franchising operations segment was up 33.8 per cent to $268.15 million, with franchisee headlines sales of $5.33 billion growing 7.6 per cent in FY16 compared to the growth of 3.7 per cent in FY15.

“This is an outstanding result that once again demonstrates the strength of our integrated retail, franchise, property and digital business spanning eight countries,” said Gerry Harvey, chairman, Harvey Norman.

“We are delighted with the improved profitability of our stores outside Australia,” he said.

The retailer’s flagship store in Singapore recorded profit of $11.36 million, representing a turnaround from the $6.03 million loss reported in the year before. The company-operated retail segment saw profit before tax result increase 78.2 per cent to $73.11 million, up from $41.03 million in the previous year. The retailer said the “record result” was built on strong performances in New Zealand, Singapore, Malaysia and Ireland.

Harvey Norman will pay a fully-franked dividend of 17.0 cents per share.

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