One of Australia’s biggest names in retail has just posted a 30 percent increase in profits.
Harvey Norman’s net profit after tax for the year ending 30 June 2016 was $348.61m.
Contributing to this, franchising operations have risen 33.8 percent, taking the segment to $268.15m.
Franchising contributed 54 percent to the total profit before tax.
Harvey Norman chairman Gerry Harvey said “Our franchisees have enjoyed sales to the value of $5.33bn this year, a 7.6 percent increase on sales in the 2015 financial year.
“This rate of growth is more than double the rate of growth achieved in the 2015 financial year, demonstrating the strong position of Harvey Norman in the Home and Lifestyle market,” he said.
A resilient property market has helped franchisee sales growth in the home and lifestyle market.
Overseas, greater profitability has been achieved in operations in Ireland, Malaysia, New Zealand and Singapore.
“We are delighted with the improved profitability of our stores outside Australia,” said Harvey.
“Our Millenia Walk flagship store in Singapore has positioned the brand very well and the Asian business recorded a profit of $11.36m. This is a substantial turnaround from the $6.03m loss reported the year before.
“Ireland is close to break-even and we expect Northern Ireland’s performance to improve this financial year with the successful opening of the Boucher Road, South Belfast superstore.”
The property segment result increased 25.2 percent to $169.29m, underpinned by a net property revaluation increment of $48.36m and increased rent revenue from rents.