The Harvey Norman Holdings Ltd (ASX: HVN) share price is slipping today, down 4.15% to $5.08 in morning trade.
We take a look at Harvey Norman’s results for the financial half year ending 31 December (H1 FY21) below.
What did Harvey Norman report for the half year?
The Harvey Norman share price is sliding today despite reporting soaring profits and announcing a record dividend payment. Perhaps caught up in the wider selloff on the S&P/ASX 200 Index (ASX: XJO) today?
The international ASX retailer reported total revenue for the half-year of $5.2 billion, up 25.8% from the prior corresponding period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) leapt 76% year-on-year to $779.8 million.
Net profit after tax and non-controlling interests came in at $462.0 million, an increase of 116% from the $213.6 million reported in H1 FY20. Profit before tax soared 114% year-on-year, to $643.9 million.
Earnings per share (EPS) also more than doubled, up 109.5% to 37.08 cents.
Harvey Norman’s net assets increased 13.9% to $3.74 billion. The company had a net cash position of $21.8 million compared to a net debt position of $553.2 million at the end of H1 FY20.
Commenting on the results, Harvey Norman chair Gerry Harvey said:
The solid results delivered this half is a testament to the strength and resilience of the integrated retail, franchise, property and digital strategy and its ability to adapt and transform to the changing retail landscape and continue to navigate the uncertainties presented by COVID-19…
The robust cash flows generated from operating activities of over $391 million dollars this half year has enabled us to invest in our businesses and paydown external debt. At 31 December 2020, the consolidated entity had $499 million of unused, available financing facilities, and is well-placed to respond to challenges and capitalise on opportunities as they arise.
The company noted that the early months of H2 FY21 are seeing continuing strength in sales revenue. From 1 January through to 23 February, aggregated sales revenue grew 21% compared to the same time frame in 2020.
Harvey Norman declared an interim dividend of 20 cents, fully franked, the biggest interim dividend it’s ever paid.
Harvey Norman share price snapshot
Over the past 12 months, Harvey Norman shares have gained 18%. The ASX retailer came roaring back from the past COVID sell-off, with shares up 108% since the 23 March lows.
Year-to-date, the Harvey Norman share price is up 7%.