Harvey Norman Holdings (ASX: HVN) has reported a 41.2% increase in profit before tax (PBT) to $400.3m for the first half of FY25, driven by strong franchisee sales and stable demand across key product categories. The company’s total system sales revenue—which includes overseas company-operated sales and franchisee sales in Australia—reached $4.83bn for the six months ending 31 December 2024.
The company recorded a cash conversion rate of 118.8%, up from the previous year, while net assets increased to $4.72bn, reflecting a 7.5% compound annual growth rate over five years. Net debt-to-equity stood at 12.01%, indicating a stable financial position.
Harvey Norman’s Australian franchisee sales saw a 9% increase in November and December 2024 compared to the same period in 2023, with January 2025 sales up 2.4% year-over-year. Sales momentum continued into February, with a 7.2% rise in the first 21 days of the month.
The company noted that its strategic expansion into England has involved significant establishment costs but remains a key growth focus. Core product categories, including home appliances, televisions, audio, mobile, and computer technology, are expected to drive revenue growth throughout FY25 and beyond.
