The retail chain Harvey Norman has boosted its full-year profit after tax to $448.98 million, a jump of 29 per cent.
Franchisee sales revenue of its three Australia and New Zealand brands – Harvey Norman, Domayne and Joyce Mayne – was $5.62 billion in the year to June 30, up 5.4 per cent on the prior year.
Solid growth in franchisee sales reflects an economy where retail spending remains above decade averages, particularly in NSW and Victoria, suggested the retailer.
The strong growth in franchisee sales contributed to a 13.6 per cent increase in the result from the franchising operations segment to $304.53 million from $268.15 million in the previous year.
Gerry Harvey, chairman of the company, said “Franchisees continue to be the dominant players in the home and lifestyle market in Australia, delivering to consumers the range of products they’re looking for, with quality customer service and a brand they can trust.
“Each franchisee owns and controls their own business, which gives them an uncapped potential to maximise their own earnings. We continue to encourage the entrepreneurial spirit of each of our franchisees.”
Revenue from company-owned overseas stores in Singapore, Malaysia, Ireland, Northern Ireland, Solvenia and Croatia rose 2.1 per cent to $1.83 billion.