Harvey Norman Holdings Ltd · ASX:HVN
Harvey Norman — FY2024 Earnings Presentation
19 slides from Harvey Norman's earnings presentation, Aug 30, 2024
Slide 1: Presentation of Results 2024
PRESENTATION OF RESULTS | 2024 FROM GRASSROOTS TO THE GAMES HARVEY NORMAN® SUPPORTING AUSTRALIAN ATHLETES MADISON DE ROZARIO JYE EDWARDS SALLY FITZGIBBONS ARIARNE TITMUS CHRIS BOND JEFF DUNNE MONTANA ATKINSON PARA-ATHLETICS ATHLETICS SURFING SWIMMING WHEELCHAIR RUGBY BREAKING PARA-SWIMMING Australia
Slide 2: Contents
2 Contents June 2024 (FY24) Results 3 FY24 Results for Announcement to the Market 4-5 An Integrated Retail, Franchise, Property & Digital 6 System Segment Analysis 7 Review of the Balance Sheet 8-9 Review of the Statement Cash Flows 10 Aggregated Sales Revenue 11 Australian Franchisee Aggregated Sal
Slide 3: June 2024 (FY24) Results
3 JUNE 2024 (FY24) RESULTS Net Assets Operating Cash Flows PBT [excluding AASB 16 net impact and net property revaluations] $4.54bn $686.53m $540.07m [$m] [$m] [$m] $70.44m from FY23 $6.27m from FY23 5-YEAR CAGR 7.2% 5-YEAR CAGR 13.0% $140.17m from FY23: 1H24 $126.88m 2H24 $13.28m $1,339
Slide 4: FY24 Results for Announcement to the Market
4 FY24 RESULTS FOR ANNOUNCEMENT TO THE MARKET Total System Sales Revenue EBITDA EBIT $898.26m $652.67m $8.86 bn $232.45m or -20.6% from $1.131bn in FY23 $215.07m or –24.8% from $867.74m in FY23 Aggregated headline franchisee sales revenue* $6.06bn 1H24 $221.00m (–31.8%) 2H24 $11.45m (-2.6%)
Slide 5: FY24 Results for Announcement to the Market (continued)
FY24 RESULTS FOR ANNOUNCEMENT TO THE MARKET (continued) 5 • Strong balance sheet with total assets of nearly $8 billion, anchored by $4 billion freehold property portfolio • $4.54bn net assets, up $70.44m (+1.6%) from Jun-23 substantial 41.9% growth since Jun-19 • Prudent financial management has
Slide 6: An Integrated Retail, Franchise, Property and Digital System
AN INTEGRATED RETAIL, FRANCHISE, PROPERTY AND DIGITAL SYSTEM 6 2 STORES We operate an integrated retail, 5 STORES franchise, property and digital system 16 across 8 countries. STORES 34 STORES 3 STORES 196 A. Australia E. Ireland 12 STORES FRANCHISED COMPLEXES 45 B. New Zealand F. Malaysia STORES C.
Slide 7: Segment Analysis
SEGMENT ANALYSIS 7 The consolidated entity operates an integrated retail, franchise, property and digital system, comprising three main strategic pillars: 1. Franchise — 2. Retail — 3. Property complemented by sustained investment in technology, digital transformation and IT infrastructure assets. F
Slide 8: Review of the Balance Sheet
REVIEW OF THE BALANCE SHEET 8 Increase / (Decrease) Increase / (Decrease) 30-Jun-24 30-Jun-23 $ % Total assets $7.93bn $7.67bn $256.04m 3.3% Total liabilities $3.39bn $3.21bn $185.60m 5.8% Equity $4.54bn $4.47bn $70.44m 1.6% • $167.02m increase in the value of the freehold investment property portfo
Slide 9: Review of the Balance Sheet (continued)
REVIEW OF THE BALANCE SHEET (continued) 9 Composition of Total Assets of $7.93bn $216.10m $1,023.69m $558.13m Other Receivables Inventory $365.35m Plant & equipment $511.93m $744.64m Property, plant & $273.47m $4,234.56m Investment properties: equipment: Cash Tangible property assets Leasehold right
Slide 10: Review of the Statement of Cash Flows
REVIEW OF THE STATEMENT OF CASH FLOWS 10 Increase / (Decrease) Increase / (Decrease) 30 June 2024 30 June 2023 $ % Net cash flows from operating activities $686.53m $680.26m $6.27m 0.9% Net cash flows used in investing activities ($301.18m) ($333.48m) $32.30m (-9.7%) Net cash flows used in financing
Slide 11: Aggregated Sales Revenue
AGGREGATED SALES REVENUE 11 Aggregated sales increase / (decrease) in constant local currencies: Total franchisee sales* Total Sales Local Currency 1H24 vs 1H23 2H24 vs 2H23 FY24 vs FY23 Year ended 30 June 2024 Australian Franchisees* New Zealand $ AUD $ NZD (-9.7%) (-6.1%) (-0.6%) (-6.4%) (-5.6%) (
Slide 12: Australian Franchisee Aggregated Sales Revenue
AUSTRALIAN FRANCHISEE AGGREGATED SALES REVENUE* 12 • Aggregated franchisee sales revenue for FY24 were $6.06 billion, a decrease of 5.6% from $6.42 billion in Total franchisee sales* FY23. The second half of FY24 outperformed the first half, with a minimal decrease of only 0.6% compared to Year ende
Slide 13: Franchising Operations Segment
FRANCHISING OPERATIONS SEGMENT 13 Increase / (Decrease) Increase / (Decrease) 30 June 2024 30 June 2023 $ % Franchising operations segment revenue $971.23m $1,065.67m ($94.44m) (-8.9%) Aggregated franchisee headline sales revenue* $6.06bn $6.42bn ($358.08m) (-5.6%) Franchising operations segment PBT
Slide 14: Overseas Company-Operated Retail Segment
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT 14 Increase / Increase / Overseas retail segment PBT result 30 June 2024 30 June 2023 (Decrease) $ (Decrease) % Overseas Retail Retail – New Zealand $67.98m $80.69m ($12.71m) (-15.8%) Segment Comprises Retail – Singapore & Malaysia $35.66m $40.07m ($4.40m) (-
Slide 15: Overseas Company-Operated Retail Segment (continued)
OVERSEAS COMPANY-OPERATED RETAIL SEGMENT (continued) 15 New Zealand Singapore & Malaysia • Sales for FY24 declined by $52.42m (–5.2%) to $952.69m for FY24, from $1.01bn in FY23 as • Aggregated sales revenue for Asia combined was $707.72m, an increase of $25.31m (+3.7%) from macroeconomic headwinds c
Slide 16: Property Segment
PROPERTY SEGMENT 16 30 June 2024 30 June 2023 Increase / (Decrease) $ Increase / (Decrease) % Property segment revenue $327.53m $423.13m ($95.59m) (-22.6%) Net property revaluation (decrement) / increment $2.25m $118.75m ($116.50m) (-98.1%) Property segment EBITDA $203.05m $308.40m ($105.36m) (-34.2
Slide 17: Freehold Property Portfolio
FREEHOLD PROPERTY PORTFOLIO 17 Net increase/ Net increase/ June # of owned retail # of owned other (decrease) in fair value (decrease) Composition of freehold property segment assets 2024 property assets property assets (income statement) in fair value (equity) (1) Investment Properties (Freehold) −
Slide 18: Leasehold Property Portfolio
LEASEHOLD PROPERTY PORTFOLIO 18 Composition of the Leasehold Property Portfolio: Right-of-use Lease liabilities # of leased retail # of leased other Composition of leasehold property portfolio asset June 2024 June 2024 property assets property assets (1) Leases of Properties Sub-Leased to External P
Slide 19: Outlook
OUTLOOK 19 • In Malaysia, we opened 6 new stores during FY24. We anticipate opening up to 10 new stores during FY25, and it is still our intention to grow to 80 stores in Malaysia by the end of 2028. • In New Zealand, the full-format store at Tauriko, Tauranga in the North Island was opened on 11 De
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