Harvey Norman lifts on better-than-expected results
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Harvey Norman are up more than 3% to $5.25 in early trading after the white goods retailer posted a 40% jump in half-year profit on the back of higher revenue from franchises and revaluation of property.
E&P Capital retail analyst Phillip Kimber said the results ahead of consensus and would likely lead to a modest upgrade in analyst forecasts. "Overall, the 1H25 result was better than expectations. The Australian Franchising Operations business was stronger than expected. Sales momentum is generally improving. HVN’s share price has risen ~6% since the start of CY25, following better than expected Black Friday & Boxing Day trading and investor sentiment towards discretionary retailers improving," he said in a note.
Harvey Norman lifts first-half profit, dividend
The news: White goods retailer Harvey Norman has lifted half-year profit on the back of higher revenue from franchises and revaluation of property.
The numbers: The retail giant said its profit after tax for the six months to December rose 40% to $279.3 million. Revenue rose 3.9% to $4.8 billion, which included $3.3 billion in franchise sales revenue and $1.49 billion from company-operated stores. It will pay an interim dividend of 12 cents a share, up from 10 cents a year ago.
The context: The company said its main Australia franchising operations delivered a substantial 26% increase in pre-tax profit at $180 million, while profits from its property portfolio also jumped on the back of a revaluation. This was partially offset by lower profits at its overseas operations, which include stores in New Zealand, Asia and Europe.
“Our strong balance sheet, low gearing ratio and substantial cash reserves provides the flexibility and capacity to seize opportunities as they arise and secure additional liquidity when needed,” chairman Gerry Harvey said.
The source: ASX
