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Harvey Norman profit falls as lockdowns trim sales

(Source: Bigstock.)

Electronics and furniture retailer Harvey Norman Holdings, which has 40 stores across Singapore and Malaysia, says prolonged government-mandated lockdowns and store closures in its home market impacted profits in the year to June 30.

The company owns and operates Harvey Norman, Domayne and Joyce Mayne brands.

Total system sales revenue for the year was $9.558 billion while company revenue reached $2.087 billion.

EBITDA fell 1.4 per cent to $1.43 billion while tax-paid profit dropped 3.6 per cent to $811.53 million compared to $841.41 in the previous year.

The company’s overseas retail profit declined 3.7 per cent to $232 million amid government-mandated lockdowns and “emerging” headwinds towards the end of the financial year.

Harvey Norman chairman Gerry Harvey said the business’ omnichannel strategy has continued to deliver despite setbacks.

“The solid cash flows generated from operating activities this year will enable us to further enhance and promote our brand locally and overseas to grow our businesses, refurbish our existing stores and invest in our new property acquisitions and pay down external debt.”

In the next financial year, the business expects to open two franchise stores in Australia and relocate one from a leased site.

Overseas, the company plans to “ramp up” its offshore expansion plans and open four new company-operated stores in the next year.

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