Harvey Norman’s annual net profit for fiscal 2015 has risen 26.6 per cent to $268.1 million, from $211.70 million last year. This has been attributed to Australia’s strong property market and increased profitability from franchise operations.

Global sales of $6.02 billion were up 4.6 per cent on a like for like basis compared to the year before.

Operations in New Zealand outperformed in a competitive market.

Franchisee operations became more profitable due to an increase in franchise fees and a decrease in tactical support provided to franchisees.

Australian franchisee sales revenue increased 3.7 per cent to $4.95 billion for the full year ended June 30.

“Strong growth in franchisee sales has enabled us to further reduce tactical support to franchisees. While maintaining our investment in the Harvey Norman brand, tactical support has decreased by approximately 20 per cent in each of the last two years,” said Harvey Norman chairman, Gerry Harvey.

“In what is still a generally challenging retail environment, we have seen further improvement in the performance of each of our business segments.

“Continuing investment in our omnichannel strategy to deliver an ever more seamless, more integrated and more differentiated Harvey Norman customer experience is paying dividends.”

In Australia two Harvey Norman stores and three Joyce Mayne complexes were closed. One Harvey Norman complex was opened and one Joyce Mayne store was rebranded as Domayne during the period.

Continuing strength in the Australia property market, particularly new home construction and secondary market transaction levels, are expected to support Harvey Norman’s medium term performance.