KEY POINTS:
Harvey Norman
Retailer Harvey Norman has posted a net profit of A$407 million ($487 million), up 77 per cent on the previous year. Much of this is one-off, from the sale of Rebel Sport and the float of financing company FlexiGroup.
But even without these items, operating profit was up 28 per cent to A$260 million - an amazing performance from such a huge sprawling chain. Sales were boosted by more stores and the continuing demand for televisions and iPods.
Fees from franchisors of 192 stores made the biggest contribution to profit. The company has 245 stores worldwide. It operates a powerful business model that involves franchising off each department within a store, so that HVN earns fees related to sales but each product range is managed by the supplier.
Harvey Norman has benefited from the conversion of old-style TVs to flat screens. But analysts have traditionally been wary of it as the stuff it sells is vulnerable to a consumer downturn.
POT
The Port of Tauranga (POT) announced a net profit for the year to June 30 of $37.9 million, a 22.4 per cent increase over last year, on revenue increasing 14.6 per cent to $140.2 million. This was a strong result, coming as it did after the uncertainty caused by Maersk's decision to concentrate its North Island hub on Auckland.
But POT's inland facility, MetroPort, has allowed the port to grow its container volumes 500 per cent. MetroPort has significant capacity to handle cargo growth. The company experienced a promising recovery in the forestry sector with log exports increasing 5 per cent, sawn timber exports increasing 16 per cent and paper products increasing 3 per cent.
Fertiliser base imports were also up 28 per cent, with palm kernel and grain imports up 11 per cent on last year.
* Views expressed in this article are those of IRG, not the Weekend Herald.
