Wesfarmers profit tops expectations
Wesfarmers posted an 18.2 per cent surge in full-year sales to $43.55 billion, ahead of market expectations, underpinned by strong earnings from its two key retail banners Bunnings and Kmart Group.
Wesfarmers boss Rob Scott said the group’s largest divisions performed particularly well during the year. Mr Scott said the results demonstrate the strength of the group’s operating model and the quality of the portfolio.
Wesfarmers boss Rob Scott says the group’s largest divisions, Kmart and Bunnings, performed particularly well during the year. Ross Swanborough
Group earnings before interest and tax rose 6.3 per ent to $3.863 billion for the 2023 financial year.
The WA-based conglomerate reported a statutory net profit of $2.465 billion for the 12 months ended June 30, an increase of 4.8 per cent, and beating expectations for a 4.1 per cent rise.
Revenue excluding its new aquisition Wesfarmers Health, which includes Priceline-parent Australian Pharmaceutical Industries, was up 7.4 per cent to $38.238 billion.
Sales at hardware giant Bunnings gained 4.4 per cent to $18.539 billion against consensus for a 3.7 per cent rise, supported by both consumer and commercial customers. Earnings rose 1.2 per cent to $2.23 billion. But sales growth in the second half slowed to 2.1 per cent, and earnings growth was virtually flat at 0.7 per cent. That was blamed on lower consumer sales while trade remained robust.
Mr Scott said while shoppers were still pursuing smaller-scale DIY home improvement projects, they were being more cautious in making big-ticket purchases and commencing larger DIY projects.
Kmart Group, which also includes discount chain Target, posted sales of $10.635 billion, up 16.5 per cent. Earnings of $769 million were up
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