Shares in Wesfarmers up as Kmart Group lifts profits
Make us a preferred source
Make us a preferred source on Google
More news: Wesfarmers shares climbed more than 4.5% to $61.63 by 1:55pm after the retail conglomerate reported steady rises in profit and revenue for the first half of FY24.
The group declared an increased interim dividend of 91 cents per share, as strong earnings from Kmart Group, Bunnings and Officeworks boosted first-half growth.
Kmart Group earnings boost Wesfarmers first-half profit
The news: Wesfarmers reported steady profit and revenue rises for the six months to December 2023, with a 3% rise in profit.
The numbers: The Perth-based conglomerate posted a 47% rise in operating cash flow compared to the prior corresponding period (pcp), helped in part by strong earnings in Kmart Group — which operates 449 Kmart and Target stores across Australia and New Zealand.
Statutory NAPT was $1.43 billion, up 3% from the pcp, while EBIT rose 1.6% to $2.2 billion. Revenue climbed 0.5% to $22.67 billion for the period.
The Bunnings owner declared a fully-franked interim dividend of 91 cents per share, up 3.4%.
The context: Wesfarmers managing director Rob Scott said the strength of the group's retail divisions over the period was buoyed by Kmart Group achieving record earnings for the first half, aided by the value credentials of its Anko products and actions to drive cost efficiencies. Elsewhere, Bunnings and Officeworks also posted solid sales and earnings growth.
While Wesfarmers said it has continued to deliver sales growth for the first five weeks of the third quarter, it warned that domestic cost pressures in Australia and New Zealand are expected to remain elevated, driven by inflation, labour market constraints, wage cost increases, and energy and supply chain costs.
The source: ASX announcement
