Harvey Norman shares climb despite mixed results
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More news: Shares in Harvey Norman were trading 4% higher at $4.93 by 2:20pm AEDT despite the retailer cutting its interim dividend amid "challenging retail conditions" earlier in the day.
While Harvey Norman's half-year EBITDA and interim dividend reduced year on year, both beat analysts' consensus. S&P Capital IQ data showed Harvey Norman's EBITDA of $473.02 million beat the consensus estimate of $469 million, while the interim dividend of 10 cents per share topped the consensus of 9 cents per share.
Harvey Norman posts profit slump and slashes dividend
The news: Harvey Norman saw its first-half profit slide amid "challenging retail conditions" which has led the board to declare a reduced interim dividend.
The numbers: Profit after tax declined 45.3% to $200.1 million over the six months to December 2023 compared to the prior corresponding period, with revenue dropping 8.2% to $2.15 billion for the first half.
EBITDA shrunk 31.8% to $473.02 million year on year, as net assets climbed 1.1% to $4.51 billion.
Harvey Norman chair Gerry Harvey said that the Sydney-based retailer remained committed to its Malaysian expansion plan, with the intention to grow to 80 stores there by the end of 2028.
The board declared an interim dividend of 10 cents per share, down from 13 cents per share a year earlier.
The context: The multinational retailer said that overseas sales were impacted by macroeconomic headwinds in New Zealand that dampened consumer and business confidence. Meanwhile, ongoing inflationary pressures and geopolitical tensions across Asia and Europe have led to a decrease in store foot traffic and spending in Harvey Norman's homemaker segment.
However, the company grew its asset base during the period, and in addition to its Malaysia expansion plans, it aims to open a store in England later this year.
What they said: Harvey said: "We are confident in the quality of the Harvey Norman, Domayne and Joynce Maybe brands and the solid market position of our Australian franchisees and overseas company-operated stores".
"We are well-positioned to benefit from growth in the homemaker categories and an improvement in residential property activity," he added.
The source: ASX announcement
