Strong retail spending in a buoyant housing market has helped furniture and electrical goods retail heavyweight Harvey Norman make a record first-half underlying profit.
Excluding net property revaluation adjustments, underlying profit before tax for the six months to December 31 jumped 20.6 per cent to $290.5 million, representing the best first-half trading result in the group's 30-year history.
Meanwhile, a seven per cent lift in sales revenue to $976.3 million at company-operated stores and a $54.5 million property revaluation gain helped push up the company's net profit for the six months to December 31 by 38.7 per cent to $257.3 million.
Co-founder and executive chairman Gerry Harvey said there had been solid franchisee sales growth, reflecting an economy where retail spending, particularly in NSW and Victoria, was above decade averages.
"It is underpinned by housing sector activity, lower unemployment and the wealth effect from higher home prices," Mr Harvey said in a statement on Tuesday.
Harvey Norman, like smaller rival Nick Scali, has benefited from strong demand for furniture and electrical goods, while the broader retail sector is under pressure from increasing competition.
Harvey Norman, which owns the Domayne and Joyce Mayne retail chains, had 87 company-operated stores and 193 franchised complexes in Australia at the end of December.
Franchisee half-year sales revenue of $2.86 billion was up 5.2 per cent from the previous year's $2.72 billion.
At 1233 AEDT, Harvey Norman shares were up five cents, or one per cent, at $5.17 in a higher Australian share market.
HARVEY NORMAN INTERIM PROFIT JUMPS
*Net profit $257.3m, up from $185.5m
*Sales revenue of $976.3m, up 7pct on $912m
*Fully-franked interim dividend of 14c a share, up one cent
Share
