Harvey Norman group profit grows 35.4 per cent

By Sarah Falson

HOMEBUSH, Sydney: Harvey Norman Holdings today revealed its Harvey Norman, Domayne and Joyce Mayne stores combined have earned $180.5 million after tax for the half-year ended 31 December – a leap ahead of the $131.86 million amassed in the previous corresponding period.

Although the FlexiGroup Limited – which provides finance to consumers to buy IT equipment, TVs and whitegoods – paid the retailer $41 million commission, and the retailer received $27 million due to property revaluations, Harveys profit was still up 14.2 per cent not taking into account these two one-offs.

Sales for the six months from Harvey Norman, Domayne and Joyce Mayne stores in Australia, New Zealand, Slovenia and Ireland, increased 16.7 per cent to $2.71 billion, with like-for-like sales up by 7.1 per cent.

Taking into account the sale period throughout January, store sales increased by 16.5 per cent from the corresponding seven months, with like-for-like sales increasing 7.4 per cent.

“In Australia, the roll out program for Harvey Norman, Domayne and Joyce Mayne complexes continues on schedule in the second half of the financial year. Our previously outlines three brand strategy is the core platform for ongoing growth in Australia,” said Harvey Norman chairman, Gerry Harvey.

According to Harvey, there are currently 22 Harvey Norman stores in New Zealand with two further stores planned to open in the second half of the current financial year, and there are 12 Harvey Norman stores in Singapore and three Harvey Norman stores in Malaysia, with further new store opportunities in both markets currently being investigated.

“In Ireland, business continues to consolidate our expanded position after the opening of the second store at Koper,” said Harvey, showing that his empire hasn’t yet “taken over the UK", as he announced he planned to do at a conference in November last year.

In the past six months, 16 former Retravision stores in New South Wales have transferred to Harvey Norman Holdings under the Harvey Norman, Domayne and Joyce Mayne brands, with another Harvey Norman store opening in Queensland and one in Western Australia.

The company directors have recommended that shareholders should receive a fully franked dividend of five cents per share on 7 May.

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