High-end grocer Harris Farm Markets suffers $22m loss

High end supermarket Harris Farm Markets is known for charging a premium for groceries but it didn’t protect the family owned company from posting an eye-watering loss that saw it breach bank covenants and undergo urgent refinancing.

Angus, Luke and Tristan Harris who head up Harris Farm Markets.

High end independent fresh fruit and grocery chain Harris Farm Markets is known for charging a premium for fruit and vegetables, but it didn’t protect the family owned company from posting an eye-watering loss.

The grocer, which has 33 stores across NSW, Queensland and Canberra, has banked a $22m loss in the 2024 financial year, more than triple the previous years.

It forced the family-owned company to refinance.

At a time when supermarkets are making big bucks by charging through the nose for groceries, Harris Farm Markets said problems with a new software system was to blame for their bottom line plunging deep into the red.

In a financial statement lodged with the Australian Securities & Investment Commission the Sydney-based company said it breached its banking covenants last year due to problems associated with the roll out its new software system.

The difficulties led to poor trading and Harris Farm to breach its bank covenants, because it could not meet the conditions outlined in their loan agreement.

However, its bankers granted it a waiver and they have refinanced with its lenders to increase its debt facilities from $230m to $290m, and has up to $100m set aside for growth plans and the construction of new stores.

According to ASIC in the 2024 financial year Harris Farm recorded $788m in revenue – a 5.6 per cent increase on the previous year,

However, because of the problematic rollout of the new software system which caused major disruptions to Harris Farm’s stock management and payments systems, there was a $56m increase in the cost of goods sold.

That resulted in a $22.023m loss in FY24 compared to a $6.235m loss in the previous year.

Tristan Harris of Harris Farm Markets. Picture: NIGEL HALLETT

Harris Farm told ASIC it has sufficient cash to meet any financial obligations and trading has returned to normal.

Despite the loss, the Harris family received a $10m dividend over the period.

The Australian Business Network contacted Harris Farm Markets head office in Sydney but they were not available for comment.

Harris Farm Markets was founded in 1971 by David and Cathy Harris in Sydney’s west.

They faced possible bankruptcy in the 1990s when an investor pulled out.

Following this, the company rebuilt itself and in 2010, Mr Harris, the founder, passed on the leadership of the company to three of his five sons, Tristan, Angus and Luke.

The three brothers were all co-chief executive until two years ago, when Tristian exited his executive role. He remains a director.

Originally published as High-end grocer Harris Farm Markets suffers $22m loss