3 ASX 200 shares that doubled profits this reporting season 

Pent up demand and working from home were factors that helped these 3 ASX 200 shares double profits this reporting season

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February reporting season was an opportunity for S&P/ASX 200 Index (ASX: XJO) shares to demonstrate that the economic effects of COVID-19 are largely behind us and business is starting to get back on track.

Earlier this week, Commsec advised in its Economics Insights report that 86% of companies were able to report a statutory profit for the six months to December 2020, but that aggregate interim earnings fell by 17%. 

Despite the broader earnings weakness for ASX 200 shares, here are three that managed a significant turnaround in net profits. 

ARB Corporation Limited (ASX: ARB

ARB is Australia's largest manufacturer and distributor of 4×4 vehicle accessories. The company's half-yearly report is a true earnings recovery story with profit after tax up 113.5% on the prior corresponding period to $54 million. The company attributed the turnaround to pent up demand created during the early period of lockdown. 

The company highlighted a respectable 14.0% increase in sales to the Australian vehicle aftermarket, while export sales grew strongly by 36.7% and represented more than a third of the company's total sales. 

Despite profits doubling, the ARB share price is down nearly 9% since the company released its half-yearly report. But looking at the bigger picture, the ARB share price has run by more than 200% since the initial March 2020 COVID-19 selloff. 

Harvey Norman Holdings Limited (ASX: HVN

Harvey Norman delivered a record half-yearly result which saw its reported profit after tax surge 116.3% to $462.03 million. The company pointed to strong growth in areas such as technology, with computers and related peripherals, leading the way due to the continuation of working from home.

Other categories that supported its surging revenues include gaming, boosted by the launch of PS5 and XBox Series X in November 2020, whitegoods, furniture and bedding. 

The company also highlighted apparent trends that supported growth in new areas such as outdoor furniture and outdoor cooking categories, as consumers rushed to transform their backyards and other entertainment spaces. 

The strong uptake of the federal government's HomeBuilder grant also supported Harvey Norman's home & lifestyle segment. The company sees the surge in new dwelling constructions and major renovations as a catalyst to drive sales and new opportunities moving forward. 

Ramelius Resources Limited (ASX: RMS

The gold spot price has been grinding lower to US$1,700 after hitting a record US$2,075 per ounce in August 2020. This has translated to weakness across the board for ASX gold mining shares. 

However, Ramelius has been a quiet achiever, with its half-yearly results highlighting a 57% increase in gold production to 144,240 ounces and a 294% surge in net profit after tax to $81.3 million. 

The company has a strong track record of increasing gold production, with year-on-year gold production increasing 21.5% since FY15. The company noted that its strong cash generation will be invested in current and future projects, and also a return to shareholders. 

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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