Harvey Norman chalks impressive profit rise

Mass merchant retailer posts strong half-year results.

Mass merchant retailer Harvey Norman has posted strong half-year results, with a 36.9 percent increase in profit.

Sales for the half-year ended 31 December 2006 totalled $2.71 billion compared with $2.3 billion for the prior period, a 16.7 percent increase.

Net profit from continuing operations attributable to members after tax and minority interests was $180.50 million, compared to $131.86 million for the preceding half-year period, a 36.9 percent increase.

Consolidated profit before income tax and before exclusion of minority interests was $269.71 million compared to $199.25 million for the previous half-year period, a 35.4 percent increase.

Gerald Harvey, chairman of Harvey Norman said in a statement that the Harvey Norman integrated retail, franchise and property system continues to be a successful formula.

“During the half-year ended 31 December 2006, nine new Harvey Norman, one new Domayne and eight new Joyce Mayne franchised complexes commenced trading, a total of 18 new franchised complexes in the local market,” he said.

Harvey added that in Australia, the roll out program for new complexes will continue on schedule in the second half of the financial year.