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Highlights
- Revenue Growth: Up 6.6% to $2.29 billion year on year.
- Profit Surge: Reported profit before tax (PBT) up 41.2% to $400 million.
- Dividend Boost: Fully franked interim dividend of 12 cents, up 20%.
- Asset Base: Total assets hit $8.25 billion, with $4.39 billion in property holdings.
Shares in Harvey Norman Holdings Ltd (ASX:HVN) climbed 4.9% to $5.34 in late morning trade on Friday, defying a 0.7% dip in the ASX 200 Index (ASX:XJO). The rally followed the release of the retailer’s H1 FY 2024 results, which showcased double-digit profit growth and a higher dividend payout.
Solid Financial Performance
For the half-year ended 31 December 2024, Harvey Norman delivered a robust set of results:
- Revenue: $2.29 billion, up 6.6% year on year.
- Reported profit before tax (PBT): $400 million, a 41.2% surge.
- Underlying PBT: $311 million, up 2.2%.
- EBITDA: $581 million, a 22.9% increase.
The company’s fully franked interim dividend of 12 cents per share marks a 20% increase from the previous year. Combined with the 12 cents final dividend paid in November, Harvey Norman now trades on a 4.5% fully franked dividend yield (partly trailing, partly pending).
Asset Strength and Long-Term Growth
Harvey Norman’s net assets grew 4.7% year on year to $4.72 billion, maintaining a 7.5% compound annual growth rate (CAGR) over five years. The retailer also surpassed the $8 billion total asset milestone, with 66% of that base comprising tangible assets, including a $4.39 billion freehold property portfolio.
This asset base reinforces the company’s long-term stability, as property holdings continue to appreciate — providing both security and growth potential for investors.
Cash Flow and Operational Challenges
Despite the impressive revenue and profit figures, operating cash flows declined 9.9% to $448 million. The cash conversion rate slipped from 135% to 118.8%, mainly due to higher payments to suppliers and employees following new store openings.
While this indicates increased upfront costs, it also suggests Harvey Norman is investing in future growth, expanding its footprint to capture more market share in the competitive electronics and home furnishings space.
Dividend Timeline and Yield
Investors hoping to secure the boosted dividend will need to own shares by 1 April (ex-dividend on 2 April) to receive their payout on 1 May. With a 4.5% fully franked yield, Harvey Norman remains an attractive option for income-focused investors.
