Harvey Norman full-year profit slides, dividend slashed
Australia’s largest white goods and home retailer Harvey Norman has posted a double-digit slide in profits and dividends over fiscal 2023, meeting its lower June guidance, and says its on track to deliver it Malaysian expansion plan.
So far in July, Australian franchisee sales fell 12.3 per cent and were 2.6 per cent lower in New Zealand, while sales in Slovenia, Croatia and Northern Ireland were down double-digits.
Harvey Norman reported a profit before tax of $776 million for the 2023 fiscal year, a decrease of nearly 32 per cent, excluding the impact of property revaluations. This met its June guidance for pre-tax profits of $637 million and $704 million for the 12 months to June 30.
Harvey Norman executive chairman Gerry Harvey said cooler temperatures in the east coast led to lower sales of air conditioning units, fans, outdoor furniture and barbeques. Janie Barrett
Total revenues of $4.28 billion, which includes company operated stores, fell by $230.5 million or 5.1 per cent. Franchising sales reached $6.42 billion over the year, down from $6.75 billion a year ago, inline with market expectations.
The franchising operations margin of 5.82 per cent was below expectations of 8 per cent.
Reported net profit tumbled to $546.8 million for the year from $811.5 million a year ago. Earnings before interest, tax, depreciation and amortisation slipped to $1.13 billion, down 21.3 per cent, from $1.43 billion a year ago – better than the 25.2 per cent fall the market was expecting.
The company’s balance sheet is anchored by a strong freehold property portfolio totalling $4.05 billion as of June 30, surpassing the $4 billion milestone for the first time.
Receivables, which is largely franchisee inventory, fell 5.8 per cent to
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