HARVEY NORMAN FIRST HALF NPAT GROWS BY 39%

By Wares February 28, 2017 Industry news

Harvey Norman's first half result is coloured by property valuations but pretty decent for all that.

Harvey Norman's first half result for the 6 months to 31 December 2016 released today brings with it a series of impressive numbers, with the New Zealand market particularly appearing to be ahead of market growth:

  • An overall H1 top line of AU$3.73 billion (+5.9%).
  • An overall NPAT of AU$257 million (+39%). (Taking out the property business, the NPAT shrinks to $204.27 million, still a strong gain of 19.7%.)
  • A 14.4% increase in the franchise operations' profits from franchisee sales of AU$2.86 billion (+5.2%).
  • Net Profit Before Tax of AU$51.6 million (+22.6%) for company-operated stores.
  • Net Profit Before Tax of its AU$2.6 billion property segment was AU$146.7 million (+91%).

The New Zealand operation’s sales (in local currency) were +10.6% and comps +6.5%, both figures handily outpacing the brand’s primary Australian marketplace.

Compared to its peers for the same period, JB Hi-Fi may have showed bigger overall top line growth (and slightly better bottom line gains), but the New Zealand Harvey Norman result handily betters JB Hi-Fi's (see the result here).

Regional Harvey Norman gains and losses in sales and comps for the half were as follows:

H1 FY2017 Sales (AU$)

Aggregated

Comparable

Overall

+5.9%

+5.4%

Australian franchisees

+5.2%

+4.7%

New Zealand

+15.5%

+11.1%

Slovenia & Croatia

+3.6%

+3.8%

Ireland

–3.4%

–3.7%

Northern Ireland

+33.8%

+13.5%

Singapore

+4.2%

+21.5%

Malaysia

–0.7%

–5.8%

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