Profits fall at Harvey Norman

Harvey Norman Holdings Limited has just announced its financial results for the year ending 30 June 2009. Profit from underlying business operations was over $250 million for the retailer, but was down 15.2 per cent from the same period last year.

Gerry Harvey, chairman of Harvey Norman, commented that the result was a substantial turnaround from the first half result which was down 29.1 per cent.

“The consolidated entity’s integrated retail, franchise and property system has proven to be resilient in achieving strong results, particularly in the second half of FY09, and our brands continue to grow market share in all key product categories,” he said.

“We are dominant in the technology, white goods, furniture and bedding space.”

Net profit from continuing operations after tax and minority interests was $214.35 million for the year compared with $358.45 million, which is a decrease of 40.2 per cent.

In Australia, the franchising operations segment result and margin improved by four per cent to $302.95 million, compared to $291.41 million for the previous year.

According to the company, written sales from franchised ‘Harvey Norman’ complexes, commercial divisions and other sales outlets in Australia for the period 1 July 2009 to 27 August 2009 have exceeded expectations, with a 7.3 per cent increase on the previous year.

“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 $442.50 million for the current financial year,” Harvey said.

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