Norman’s overseas impetus

HARVEY Norman boss Gerry Harvey says overseas business could account for more than half its profits in five to 10 years.

Overseas Harvey Norman stores contributed $90.85 million towards a record net profit of $448.98 million for 2016-17, up 28.8 per cent on the year before. Strong growth from New Zealand, Malaysia, Slovenia, Singapore and Croatia, and a 62 per cent reduction in losses in the Irish business, lifted overseas profit by 24.3 per cent compared to 2015-16.

“This is the best result we have ever had and it has a lot to do with the total overseas contribution getting close to $100 million in profit,” he said.

“The overseas business is coming into play in a much better way than it has ever done before.”

Mr Harvey said he hoped to double overseas profits within three years by growing store numbers and profit margins in its current seven markets.

“And it is possible — I don’t think it’s a stupid thing to say now — that half our profit will come from overseas,” he said. “I’m talking five to 10 years.”

The international segment’s revenue rose 2.1 per cent to $1.83 billion with comparable sales up 4.5 per cent.

In Australia, franchisee sales revenue from Harvey Norman, Domayne and Joyce Mayne stores rose 5.4 per cent to $5.62 billion.

Mr Harvey said the final dividend of 12 cents, down five cents year on year, would allow it to direct some profit towards store upgrades and overseas expansion.

Shares in Harvey Norman were down 7.3 per cent to $4.10 yesterday afternoon.