Harvey Norman (ASX:HVN) repays $6 mil in Jobkeeper on profit surge

Company News

by Melissa Darmawan

Harvey Norman’s (ASX:HVN) total sales surged 15.3 per cent collectively from stores around the globe at $9.5 billion for the year ending 30 June this year (FY21). The furniture and electronics giant were a beneficiary of the Covid-19 pandemic as demand for office and home goods surged as consumers spent while cooped up at home buoyed by government grants.

EBITDA jumped higher at 54.4 per cent to $1.1 billion with profit after tax which excluded net property revaluations soaring higher by 63 per cent at $743.1 million.

The retail giant reaped the benefits from the government both from the customer and employee sides of the business.

A strong uptake of the Federal Government’s Homebuilder grant saw the boost for kitchen goods as renovations took place while the demand of audio-visual devices propelled higher as the pivot from outdoor entertainment and travel moved into their home. Meanwhile, the $6.02 million of stimulus support from jobkeeper kept all their employees on their books. They quietly celebrated that they repaid the amounts of $3.63 million in FY21 and $2.39 million in FY20 in August this year after much criticism last year.

However, sales have slowed down for the new financial year with their Aussie franchises lagging the most. Compared to the reported stellar year, franchises in Australia are tracking 19.1 per cent lower followed by New Zealand, down 13.0 per cent.

The company has declared a 15 cents dividend set to be paid in November this year. This takes their full-year pay out to 35 cents, up from 24 cents in 2020.

Shares in Harvey Norman (ASX:HVN) are trading 3.1 per cent lower at $5.38.

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