Harvey Norman posts gains on annual profit, upbeat on growth for new financial year
Electrical retailer Harvey Norman Holdings Ltd (ASX: HVN) said on Friday that it saw an eight percent growth on its annual profit as it added that further growth could be expected in the current financial year.
The company said that its full year profit soared to $231.41 million as compared to the $214.35 million it earned in the previous year while franchisee sales surged from $5.06 billion to $5.19 billion though company owned sales revenue declined a bit from $1.441 billion to $1.345 billion.
Harvey Norman said that earnings before interest and tax (EBIT) improved from $382.95 million to $420.1 million in the same period while earnings per share rose to 21.78 cents, picking up from the 20.18 cents it posted from the prior year.
The retailer said that it set to issue dividends of 14 cents, fully franked, and improving from the 11 cents earlier paid.
Harvey Norman executive chairman Gerry Harvey said that the company's decision to expand its demographic paid off while the acquisition of Clive Peeters and Rick Hart brands supported its upbeat expectations for the new financial year.
Mr Harvey cited the company's good performance amidst the onset of slow downs in the last two months of the financial year, in which consumers may have the money but relatively cautious to spend.
Notwithstanding, the company is all set to open five new Harvey Norman complexes in Australia and another branch in Slovenia, expansion moves which were anchored on projected company growth for the newly started financial year.
Mr Harvey said that the company is optimistic of growth for the full 12 months, asserting that once the election results have been settled, the country would enter "a period of full employment, low interest rates and homes with good balance sheets, and the property market holding up very well."