Harvey Norman has announced a 19.3% slump in net profit after tax for the half year to 31 December 2017, despite an uplift in sales and a 5% rise in revenue.
Furniture and electronics retailer Harvey Norman has announced a net profit of $207.69 million, down $49.60 million, from $257.29 million in the previous corresponding period.
The retailer says its massive profit downgrade for the first half of FY18 was largely impacted by a reduction in property valuation associated with its Coomboona Holdings joint venture, which wiped nearly $53 million off its worth, as well as a $20.67 million impairment loss for the write-down of that business. Coomboona is a dairy and stud farm in north-west Victoria, of which Harvey Norman owns a 49.9 percent stake.
Harvey Norman’s chairman, Gerry Harvey said that its retail business was, however, strong saying: “The strength, stability and flexibility of our expansive, high-quality retail developments continues to be an integral point of difference – We’re very much focused on raising the bar of our retail experience.”
Harvey Norman’s share price had dropped nearly 13 percent to $3.99 by 10:30am after its half year financial results were released.
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