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Harvey Norman mulls share buyback after profit surges to record on overseas growth

by August 31, 2017 General

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