Harvey Norman expects the strengthening housing market to boost its business, after achieving sales and profit growth in the past year.
The electrical and homewares retailer’s like-for-like sales grew 4.7 per cent in the year to June 30 to $5.77 billion.
It made a net profit of $211.7 million, up 49 per cent from $142.2 million in the previous year.
The profit growth was partly due to changes to the valuation of its massive property portfolio.
Excluding those factors, profit was up 20 per cent on the previous year.
Harvey Norman shares were up 19 cents, or 5.8 per cent, at $3.48 at 1135 AEST.
Chairman Gerry Harvey said it was pleasing to see improved performances in 2013/14 from each of the company’s business segments, despite some short term weakness related to the Federal budget and general weakness in retail.
“This is a solid financial result underpinned by sound strategic decision making and the strength of our integrated retail, franchising, property and digital system,” he said.
The company expects a robust outlook for the housing market to underpin its earnings growth.
“Favourable trends are evident in the Australian housing market, and we are positioned to harness our market-leading position in homemaker product categories to build additional market share,” Mr Harvey said.
Shareholders will receive a final dividend of eight cents per share, up from 4.5 cents a year ago.