Retail giant Harvey Norman (ASX:HVN) posted a 40% jump in first-half profit, reaching $279.3 million, driven by higher franchise revenue and property revaluations.
Revenue rose 3.9% to $4.8 billion, including $3.3 billion from franchise sales and $1.49 billion from company-operated stores.
The company declared a 12-cent interim dividend, up from 10 cents last year.
Australian franchise operations delivered a 26% rise in pre-tax profit to $180 million, offsetting weaker performance in overseas markets such as New Zealand, the UK, Singapore, and Malaysia, where comparable sales declined.
However, franchisee sales grew 9% during key November-December 2024 shopping periods, with January sales up 2.4% and accelerating 21% in early February.
Chairman Gerry Harvey attributed the growth to strong demand for AI-enabled devices, boosting sales in home appliances, TVs, audio equipment, and mobile devices.
Despite challenges abroad, Harvey Norman continues to expand its international footprint while maintaining a strong balance sheet and cash reserves.
At the time of reporting, Harvey Norman's share price was $5.27.