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Harvey Norman global sales swell to $3.09 billion

Harvey Norman global sales swell to $3.09 billion

Net profit after tax lifts 27 per cent to $141.98 million in the first half of FY15

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ASX-listed retailer, Harvey Norman (ASX:HVN), has seen net profit after tax increase 27 per cent to $141.98 million for the first half of 2015 financial year.

Global sales increased to $3.09 billion, 3.2 per cent on top of the previous corresponding period.

“The strength of our omni channel strategy and the benefits of the integrated Harvey Norman system continue to shine through this result,” Harvey Norman chairman, Gerry Harvey, said.”Our business has shown positive momentum for some time now and it’s great to see improved segment performances in the half year.”

Franchisee sales increased 1.8 per cent to $1.17 billion in the September quarter and by 2.1 per cent to $1.36 billion in the December quarter.

“The franchising operations segment turned in a particularly strong performance during the period, delivering improved profitability and an eighth consecutive quarter of like-for-like sales growth,” Harvey said. “We are seeing consistent strength in NSW, a state where property markets are particularly buoyant and home to more than 35 per cent of our stores.”

Company-operated retail segment recorded an 8.1 per cent increase in revenues to $842.87 million. This was driven by an improved contribution from New Zealand-based stores, a reduction in trading losses in Ireland and Northern Ireland as consumer brand awareness improved and economic conditions stabilised.

“Our vast portfolio of real property fortifies our balance sheet and provides a clear advantage over competitors. We have reduced gearing significantly over the last three years and more than doubled our net assets in the past decade,” he said. “A balance sheet rich with tangible assets provides a solid platform for growth.

“The housing market in Australia is likely to remain strong, supported by record low interest rates and major infrastructure investment in NSW. Notwithstanding a significant change in the broader economic environment in Australia, we expect consumer sentiment to remain stable and positive trends in our business to continue.”

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