Harvey Norman Holdings (HVN) H2 2024 earnings summary

Executive summary

• FY24 profit before tax (PBT) excluding AASB 16 and property revaluations was $540.07m, down 20.6% year-over-year; reported PBT was $541.69m, down 30.2% from FY23.

• Net assets rose 1.6% to $4.54bn, with a 41.9% increase since June 2019.

• Total system sales revenue was $8.86bn, a 3.6% decrease from FY23.

• Operating cash flows increased 0.9% to $686.53m, with cash conversion at 100.4%.

• Dividend per share was 22.0c, down from 25.0c in FY23.

Financial highlights

• EBITDA was $898.26m, down 20.6% from FY23; adjusted EBITDA was $686.61m, down 15.5%.

• Reported profit after tax & NCI was $352.45m, down 34.7% year-over-year.

• Basic EPS was 28.29c, down from 43.30c in FY23.

• Net debt to equity ratio improved to 14.49% from 19.46% in FY23.

• Total assets reached $7.93bn, up 3.3% from June 2023.

Outlook and guidance

• Up to 10 new stores planned in Malaysia for FY25, aiming for 80 stores by 2028.

• Two new full-format stores to open in New Zealand in 1H25; UK flagship store to open in October 2024.

• July 2024 trading update: Australian franchisee sales up 3.3% year-over-year, New Zealand down 9.5%, Malaysia up 9.7%.

• Expansion into Hungary cancelled due to unfavorable conditions.