Harvey Norman posts best half-year profit in 30 years with $257 million, Gerry Harvey toasts success

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Harvey Norman posts best half-year profit in 30 years with $257 million, Gerry Harvey toasts success

Harvey Norman has posted its best half-year profit in 30 years, reaching $257 million in net profit after tax for the half-year ending 31 December 2016.

The result, released on Tuesday through the ASX, represents an increase of $71.79 million, or 38 percent change, from the company’s previous corresponding period, when its revenue was $185 million. Pre-tax profit was $366 million, up 39 percent from $262 million.

That pre-tax figure includes a $21 million, or 14 percent, increase in the profitability of the franchising operations segment to $172 million; net property revaluation increment of $75 million, an increase of $54.55 million, and strong improvement in the profitability of the company-operated retail segments in New Zealand, Singapore and Malaysia, Ireland and Northern Ireland and Slovenia and Croatia.

Highlights from the half-year report also include $2.86 billion in franchisee aggregated headline sales, up 5.2 percent, and company-operated retail revenue of $976 million, up seven percent.

Harvey Norman chairman Gerry Harvey said the company was seeing success on the back of its response to an evolving retail market.

“Our franchisees’ dominance in the home and lifestyle categories and early recognition of the potential of the internet of things and connected devices has seen franchisees really capitalise on consumers’ passion and demand for technology,” he said.

“Technology is changing at an ever-increasing pace and everyday brings a new product to help us manage our work commitments and to better enjoy our home and leisure time. Consumers remain enthusiastic about enhancing their home and participating in the exciting technology available for home security, entertainment, health and fitness and communications.”

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