Harvey Norman mulls share buyback after profit surges to record on overseas growth
Harvey Norman is mulling a share buyback after annual net profit jumped 29 per cent to a record as it benefited from sales growth at its overseas businesses and higher valuations for property at home.
Net profit for the year ended June 30 rose to $449 million from $348.6 million a year ago, Australia’s biggest electronics retailer said in a statement to the sharemarket on Thursday. The result beat analyst forecasts of about $414 million, according to Thomson Reuters I/B/E/S.
“This is a record-breaking result that once again demonstrates the strength of our integrated retail, franchise, property and digital business spanning eight countries”, Chairman Gerry Harvey said.
“In an ever-changing retail environment, our model continues to adapt and be resilient.”
The board was now reviewing options how to manage its capital, which could include a possible share buyback, the company said.
Franchisee sales revenue of its three Australia and New Zealand brands – Harvey Norman, Domayne and Joyce Mayne – was up 5.4 per cent at $5.62 billion for the year. Revenue from company-owned overseas stores in Singapore, Malaysia, Ireland, Northern Ireland, Solvenia and Croatia rose 2.1 per cent to $1.83 billion.
The retailer will pay a final dividend of 26 cents a share on December 1, fully franked, down 4 cents on last year.
More to come…
BusinessDay with Reuters