Harvey stages a comeback

Revenue still down in yearly results, but a big improvement on 2008

Mass merchant, Harvey Norman, posted a strong recovery in the second half of its financial year.

Net profit from underlying business operations for the year ended June 30 was $250.42 million, a decrease of 15.2 per cent on 2008’s total of $295.14 million. Considering its half-year profit result to December 31 was down 29.1 per cent, the second-half figure represents a significant turnaround. Total revenue for continuing operations reached $2.5 billion, down 1.3 per cent year-on-year.

In a statement to the ASX, Harvey Norman chairperson, Gerry Harvey, claimed its retail, franchise and property system helped it achieve the results. It has also grown market share in key product categories.

“We have a strong balance sheet and cash flow and are well placed to continue to grow our core business. Net cash flows from operating activities increased substantially to $442.5 million for the current financial year,” Harvey stated.

Harvey Norman took an $8 million hit following the closure of its OFIS line of retail outlets.

However, it also posted strong sales results to the ASX through the year, including a 3.8 per cent rise in sales for the the three months running to the end of the financial year, a 3.6 per cent increase in sales for the nine months ending March 31, and a 3.5 per cent increase of sales for the six months to December 31, 2008 over the same period in 2007.