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Harvey Norman HY profit falls 19pc

Petrina Berry  |  28 Feb 2018Text size  Decrease  Increase  |  
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BRISBANE - [AAP] Furniture and electronics retailer Harvey Norman's (ASX: HVN) half-year net profit has slumped with franchisees' earnings falling and as the group's dairy investments have soured.

Harvey Norman shares have plunged, falling 14 per cent to $3.94, their lowest level since November, by 1120 AEDT.

The retailer's net profit of $207.7 million for the six months to December 31 is down 19.3 per cent on the same period a year ago, with a $20.7 million before-tax impairment hit from its dairy investment, the Coomboona Holdings joint venture, weighing on the group's bottom line.

Harvey Norman's result also included a $4.57 million before-tax trading loss by the Coomboona JV.

Excluding these hits and net property revaluations, underlying profit is down 1.4 per cent at $209.4 million.

The group's Australian franchisee stores profit has fallen 2.9 per cent to $167.2 million amid stiff competition and higher staff wages due to an additional weekend trading day compared to a year ago, the company says.

Company-operated store sales revenue is up 4.7 per cent at $1.02 billion while franchise sales have lifted 4.8 per cent to $3 billion.

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The company has cut its interim dividend by two cents to 12 cents a share, fully franked.

HARVEY NORMAN HALF-YEAR PROFIT SLUMP:

* Net profit down 19.3pc to $207.7m

* Company-operated sales revenue up 4.7pc to $1.02bn

* Interim dividend 12 cents a share, down from 14 cents

 

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is an AAP journalist.

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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