Retailer Harvey Norman profit crashed to $375.38 million

  • Sep 03, 2018 AEST
  • Team Kalkine
Retailer Harvey Norman profit crashed to $375.38 million

Harvey Norman Holdings Limited’s profit after tax fell 16.4% to $375.38 million due to massive decline in franchise operation and property segment for the year ended 30 June 2018. Earnings before interest and tax decreased to $556.52 million, down 15.7% on the back of 5% downfall in revenue and other income item to $1240.70 million.

However, the company-operated retail revenue rose 8.5% to $2.03 billion, driven by outstanding performance of Harvey Norman branded stores which represents 22% of total consolidated result. The retail segment result for the Harvey Norman company-operated stores overseas reached $116.13 million for the fiscal year 2018, up 15.1% with highest increase of 156.7% in Ireland and Northern Ireland’s performance.               

The company declared fully franked final dividend of 18.0 cents per share which takes total full year dividend to 30 cents per share, up 15.4% on prior year.  Earnings per share slipped to 33.71 cents in FY18 from 40.35 cents in previous year.

Australian retailer HVN expects to open around 18 new Harvey Norman company-operated stores overseas within the next 2 years.

Harvey Norman Holdings Limited also announced renounceable pro rata right issue of $163.85 million in the ratio of 1 new share for every 17-existing share at an offer price of $2.50 per share. The capital raised through this offer is intended to be utilized for reducing HVN’s consolidated debt.

HVN continues to fall as it dropped 2.5% to $3.510 on 3 September 2018 (12:41 PM AEST).

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