Harvey Norman Holdings Limited (ASX: HVN) released its 2018 financial results to the market today revealing a 17.1% fall in profit

Harvey Norman Holdings is the company responsible for franchising Harvey Norman outlets across Australia, as well as Domayne.

Here are some of the highlights from its report:

  • Company-operated sales revenue up 8.8% to $2 billion
  • Underlying net profit down 0.1% to $375.38 million
  • Reported net profit down 16.4% to $375.38 million

According to Bell Potter, analysts were expecting Harvey Norman Holdings to report a profit of $366.9 million. With the share price down 2% in early trade, investors appear to be disappointed with the result.

The reported profit was hit by the $49.44 million impairment relating to the dairy farm joint venture, Coomboona.

Harvey Norman’s company-operated overseas retail segment delivered growth. Singapore & Malaysia saw growth of 29.6% to $25.01 million, Ireland & Northern Ireland saw growth of 156.7% to $1.41 million and Slovenia & Croatia generated growth of 60% to $7.4 million.

The Chairman of Harvey Norman, Gerry Harvey, remained positive saying:

We fully intend to capitalise on this excellent performance overseas, and plan to invest substantially in growing our offshore Harvey Normal store network, particularly in South East Asia. We are actively exploring new sites, and there is an expectation to open up to 18 new Harvey Norman company-operated stores overseas in the next two years.”

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