‘We haven’t got people’: Harvey Norman boss says labour shortages must be solved

“Because it’s like a wonderful course, they are learning to talk to people and engage with people.”

Harvey Norman reported a 3.6 per cent drop in net profit after tax for 2022, hitting $811.5 million. Earnings before interest, tax, depreciation and amortisation were 1.4 per cent lower at $1.44 billion.

While lockdowns hit the company’s local franchisees hard, stores have been able to embrace “pandemic-inspired construction and renovation activity”, Harvey and chief executive Katie Page said in a letter to shareholders.

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“Household savings remain at record highs, growing by over $286 billion or 30 per cent since the start of the pandemic, primarily skewed towards higher income households,” they said.

“Franchisees are well-placed to benefit from any unwind in the built-up household savings as they predominantly service the middle-to-upper product markets, and are expected to benefit from the sustained investment in the home as devices and appliances require replacement and upgrade.”

Harvey said the strength of the jobs market and solid consumer spending, particularly in regional areas, sat at odds with warnings about a slowdown or possible recession.

“When you’re talking to people, you think, gee, we must be in the biggest boom Australia has seen in the last 60 years,” he said.

Figures for the first two months of the new financial year show Australian sales are up by 10.7 per cent compared with last year, with comparable sales growth of 10.3 per cent.

Sales are up 5 per cent overall in New Zealand, but down by 1 per cent in Ireland and 10.2 per cent in the company’s Northern Ireland stores.

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“The start of FY23 has seen solid sales results. Low unemployment and high net deposit rates continue to underpin growth,” the company said.

Investors will see a fully franked final dividend of 17.5 cents a share, payable on November 11. The total full-year payout is 37.5 cents, up from 35 cents in 2021.

Shares opened 0.4 per cent lower at $4.31 and were down close to 2 per cent at 11.24am to $4.24.

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