Harvey Norman Holdings Ltd ( (HNORF) ) has released its Q2 earnings. Here is a breakdown of the information Harvey Norman Holdings Ltd presented to its investors.
Harvey Norman Holdings Ltd is a prominent Australian-based retail company operating in the retail, franchise, property, and digital sectors, with a significant presence in eight countries. The company recently announced its half-year results for the period ending December 2024, showcasing a robust financial performance despite challenging global retail conditions. Key highlights include a 41.2% increase in reported profit before tax to $400.29 million and a 39.7% rise in profit after tax to $279.39 million. The company’s total system sales revenue reached $4.83 billion, supported by strong franchisee sales and strategic property revaluations.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 22.9% to $581.42 million, while the net assets grew by 4.6% to $4.72 billion. Harvey Norman’s strategic expansion efforts, including new store openings in Malaysia and the UK, contributed to the growth in company-operated sales revenue. Additionally, the company’s property portfolio experienced a significant revaluation uplift, further strengthening its financial position.
Harvey Norman’s franchising operations in Australia reported a 26.0% increase in profit before tax, driven by a 5.5% rise in aggregated franchisee sales revenue. The company’s overseas operations also showed positive trends, with notable sales growth in Ireland and Croatia, although challenges persisted in markets like Singapore and New Zealand due to economic uncertainties.
Looking ahead, Harvey Norman remains optimistic about its growth prospects, supported by a strong balance sheet and a diversified business model. The company plans to continue investing in digital transformation and expanding its retail footprint, particularly in emerging markets like the AI-PC sector, to drive future growth and enhance shareholder value.