Harvey Norman reported net profit of $214.35 million for the year ending June 30, 2009, compared to $358.45 million in the previous financial year.
The company attributed the profit fall to property revaluation, trading losses of $49.33 million in Ireland and Northern Ireland, impairment expenses and a reduction in profitability in its retail operations in New Zealand due to the recession.
"The consolidated entity's integrated retail, franchise and property system has proven to be resilient in achieving strong results, particularly in the second half of FY09, and our brands continue to grow market share in all key product categories,'' chairman Gerry Harvey said.
Profit from underlying business operations for the year ended 30 June 2009 was $250.42 million, compared to $295.14 million in 2008, a decrease of 15.2 per cent.
"This is a substantial turnaround from the first half result which was down 29.1 per cent,'' the company said.
Sales revenue from the New Zealand company-owned stores increased by $NZ14.51 million ($11.87 million), an increase of 1.9 per cent.
Translated into Australian dollars, NZ sales revenue fell by $21.31 million, a decrease of 3.2 per cent
"The New Zealand operation has, and will continue, to outperform the market despite the recession in New Zealand,'' the company said.
"Increased share in key growth categories combined with the brand strength of the Company in that market should ensure future growth.''
In Ireland, contraction in sales in local currency and a significant decline in product margins led to a trading loss of $49.33 million for the year.
"Trading conditions in Ireland continue to be challenging. We are constantly striving for further improvements to the operational performance to shore up the platform for future growth and profitability."
Harvey Norman declared a final dividend of 6 cents per share, bringing total divends for the year to 11 cents per share, down from 14 cents in 2008.
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