The Harvey Norman Holdings Ltd (ASX: HVN) share price traded 8% lower on Friday following the release of its half-year financial report.
Meanwhile, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 6443.5, down 3.22%.
About Harvey Norman
Harvey Norman Holdings is a major retailer that both operates company-run stores and also franchises Harvey Norman stores.
There are Harvey Normans in Australia, New Zealand, Slovenia, Croatia, Ireland, Northern Ireland, Singapore and Malaysia. Gerry Harvey and Ian Norman opened the first store over 50 years ago in 1961.
In the Rask video above, Owen explains the difference between underlying and statutory financial accounts. Understanding the difference between the two will help you make sense of a company’s operating performance. You can take one of Owen’s free finance courses by clicking here. page.
HVN – Key Results
| This period | Last period | Change | |
| Revenue | 1,239.08 | 1,175.26 | 5.43% |
| Profit | 217.12 | 226.68 | -4.22% |
| Cash flow | 298.77 | 145.36 | 105.54% |
| Dividends (cents) | 12 | 12 | 0% |
Source: Harvey Norman Holdings Ltd announcements; author calculations, AUD millions unless otherwise stated.
As can be seen above, the company’s revenue came in at $1.24 billion, up $63.82 million over the prior corresponding period. Harvey Norman said the growth and profitability of the group were helped higher by increased company-operated store profits, which rose 5.4%.
“We have already delivered organic growth in Malaysia this half with the opening of 5 new stores during HY20, and are on track to open another 2 new stores in Malaysia, 2 new stores in Singapore, and a store at Galway in Ireland – all by the end of FY20,” the company media release stated.
On the cash flow statement, which is an important financial statement since it represents the underlying health of a business, operating cash flow was $298.77 million, up $153.41 million.
Finally, dividends declared by the company stood at 12 cents, in-line with last year. Analysts surveyed by Bloomberg had been expecting a dividend of 12 cents per share, so it appears Harvey Norman’s dividend result was in-line with expectations.
What Happens Next?
Commenting on the outlook, while the company said it had a positive start to the calendar year 2020, it noted the impacts of bushfires, then floods and then the Coronavirus will likely take a toll on consumers and businesses alike.
“Consumer and business confidence will take another toll until this threat is understood and mitigated,” the company’s ASX release noted. We’ve covered the ASX impact of Coronavirus.
Harvey Norman Holdings Ltd shares were last seen trading at $3.96, giving the company a market capitalisation around $5 billion.
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