Billionaire Harvey Norman chairman Gerry Harvey has defied political pressure to pay back an estimated $22m in jobkeeper after the retailer’s profits more than doubled during the pandemic.
The furniture, electrical and whitegoods retailer on Friday reported that first-half sales climbed 25% and contributed to a net profit after tax of $462.03m for the last six months of 2020 – up 116% on the same time period in the previous year.
Harvey Norman said it would pay dividends totalling $249m, of which Harvey is set to receive $78m due to his 31.4% shareholding in the company.
“Australian taxpayers gave Harvey Norman and franchisees $22m in jobkeeper,” Labor frontbencher Andrew Leigh said.
“They don’t need a cent of it. Firms with far smaller profits have already paid back their jobkeeper funds.
“At a time in which one million Aussies are out of work, taxpayers shouldn’t be supporting a billionaire. Time to pay it back, Gerry.”
Companies that have paid back jobkeeper payments after recovering from the coronavirus crisis include Nine Entertainment, Domino’s, Super Retail Group and Toyota.
Others that have not returned the money include car dealership group AP Eagers. On Wednesday it announced it would pay shareholders, including billionaire and Sydney Roosters chairman Nick Politis, a total of $64m in dividends after receiving $130m in jobkeeper.
Consumers have spent plenty of money on home renovations during the pandemic, which has continued in Harvey’s second half.
Sales were up 21% from 1 January to 23 February compared to the same time last year.
The group operates in eight countries.
Harvey said the results were testament to the combined retail and digital approach.
Customers appreciated the shopping experience at stores, he said, as well as being able to buy online and have goods delivered.
There are about 200 Harvey Norman stores in Australia, which run under a franchise model, while the group owns about 96 stores overseas.
Shareholders will receive a fully franked interim dividend of 20 cents per share. The company did not pay an interim dividend last year due to Covid-19.
Shares were down 3.4% to $5.12 at 1149 AEDT amid a wider market downturn.