Harvey Norman Holdings Limited Reports Strong 2023 Financial Results

Harvey Norman Holdings Limited (ASX: HVN), a leading integrated retail and franchise company, has announced its financial results for 2023. The company reported a net asset increase of 4.0% to AU$4.466 billion compared to the previous year, showing a remarkable growth of 39.7% from the net assets of AU$3.198 billion in 2019.

Source: Kapitales Research

Earnings Overview

Despite a decline in basic earnings per share to AU$43.30c from AU$65.13c in FY22, the figure remained higher than AU$34.70c in FY19. While dividends per share dropped to 25.0c from 37.50c in FY22 and 33.00c in FY19, the total system sales revenue reached AU$9.193 billion, with aggregated franchisee sales revenue accounting for AU$6.417 billion. The company-operated sales revenue was reported at AU$2.776 billion, demonstrating the resilience of Harvey Norman's business model.

Confident Growth Outlook

The CEO and Chairman expressed optimism about the company's future growth, emphasizing their commitment to technology investments and customer loyalty enhancement. Despite a temporary dip in profitability due to external factors, Harvey Norman Holdings remains confident in its position to benefit from improved trading conditions and growth opportunities.

Segment Strengths

The financial report highlighted the robustness of the company's business segments, including franchising operations, property, and overseas company-operated retail. It showcased the diversified strategies the company employs to maintain its strong position in the market.

Franchise Power Harvey Norman Holdings is known for its franchises under the Harvey Norman®, Domayne®, and Joyce Mayne® brands, with its Australian franchising operations comprising 197 complexes and 555 independent franchisees.

Global Footprint

The company operates an integrated retail, franchise, property, and digital system across 8 countries, and its continued focus on technology and strategic expansion underscores its commitment to sustained growth.

Promising Future

Investors and stakeholders look forward to the company's future endeavors as it navigates the dynamic retail landscape with its versatile business model and customer-centric approach. The impressive net asset growth and resilient sales revenue highlight the company's potential for continued success.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com