Operating profits double at Harvey Norman to €11.7m

Covid impact on sales not as severe as initially expected

Harvey Norman has opened three new outlets since last June, taking space in Galway, Sligo and at Blanchardstown in Dublin.  Photograph: Cyril Byrne

Harvey Norman has opened three new outlets since last June, taking space in Galway, Sligo and at Blanchardstown in Dublin. Photograph: Cyril Byrne

 

Operating profits at the Irish arm of Harvey Norman last year more than doubled to €11.77 million.

New figures show that revenues at the electrical and furniture retailer increased by 15 per cent from €236.19 million to €271.72 million in the 12 months to the end of June last.

The Covid-19 pandemic coincided with the final third of Harvey Norman Holdings (Ireland) Ltd’s financial year ,and the business has been hit by Covid-19 lockdowns of varying levels since. Directors noted, however, that “during both Covid-19 lockdowns, the impact on sales has not been as severe as initially predicted due to the ability of the group to increase its Republic of Ireland online capabilities”.

The directors said the company’s 13 stores in the Republic across the 12 months “outperformed the discretionary retail market, with market share gains across all key product categories”.

They added that in the first half of the 2020 financial year the group’s sales increased by 10 per cent, and in the third quarter to the end of March 2020, the group enjoyed double-digit sales growth. 

“We swiftly moved to an online model with a fast, efficient and safe delivery model,” the directors said.

New outlets

The group has opened three new outlets since last June, taking space in Galway, Sligo and at Blanchardstown (for a clearance outlet) in Dublin.

The accounts show that the group’s pretax profits last year decreased by 18 per cent from €14.06 million to €11.49 million. The 2019 pretax profits were skewed by an exceptional gain of €8.24 million under interest payable and similar charges.

Numbers employed by the group last year grew from 982 to 1,013 as staff costs increased from €35.7 million to €36.19 million.

Directors’ remuneration last year more than doubled from €337,330 to €817,016.

The group’s lease costs last year increased from €12.46 million to €12.93 million. At the end of June last, it had shareholder funds of €33 million.