Harvey Norman accelerates Asian expansion, eyes 80 stores in Malaysia

Electronics and furniture retailer Harvey Norman Holdings says it plans to recommence its offshore expansion plans, as profit slows in its Australian home market.

Releasing its December half results, the ASX-listed company said it plans to grow its store footprint in Malaysia to 80 stores by the end of 2028.

In its results, Harvey Norman – which operates the Harvey Norman, Domayne and Joyce Mayne brands – reported a 15 per cent fall in profit in its December half.

Total system sales revenue for the year was A$4.98 billion while company-operated revenue reached $1.47 billion.

EBITDA fell 8 per cent to $694 million while tax-paid profit slumped 15.1 per cent to $365.9 million.

The group’s overseas retail profitability declined 22.5 per cent to $28.9 million primarily due to difficult trading conditions in New Zealand while its total assets increased to $7.81 billion, up 7.8 per cent during the half.

Harvey Norman chairman Gerry Harvey said the business will continue to assist each franchisee with the necessary tools and digital structure to invest in their customers.

“Amid the macroeconomic headwinds of the past year, we have grown our integrated retail, franchise, property and digital business across eight countries to nearly $5 billion in system sales for the current half-year period.”

Further reading: Harvey Norman profit falls as lockdowns trim sales

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