Wesfarmers books 14% jump in full-year profit, confirms chair succession
Make us a preferred source
Make us a preferred source on Google
The news: Wesfarmers' full-year net profit after tax came in at $2.93 billion, 14.4% higher than the $2.56 billion recorded in FY24 as the conglomerate attributed sales and earnings growth to low prices and offers at its Bunnings and Kmart stores.
The group also announced the appointment of former BHP chair Ken MacKenzie as its new chair, succeeding Michael Chaney on 29 October.
The numbers: The market consensus estimate for net profit after tax was $2.63 billion, according to Visible Alpha figures.
Excluding significant items, net profit was up 3.8% to $2.65 billion.
FY25 revenue came in at $45.70 billion, which is 3.4% higher than the $44.19 billion reported in FY24 but below the market consensus estimate of $45.80 billion.
Wesfarmers will pay a final dividend of 111 cents per share, up from 107 cents last year and topping analysts' expectations of 110.5 cents.
The context: The group said Bunnings, Kmart and Officeworks all improved sales and earnings during the period, despite "challenging trading conditions".
However, its chemicals, energy and fertilisers business WesCEF saw its earnings impacted by lower global commodity prices, while earnings across its industrial and safety divisions declined due to a softer market environment and restructuring costs.
Wesfarmers also confirmed that Chaney will step down as chair, having previously said he would retire at the end of his current three-year term. Chaney joined the group in 1983 and served as managing director between 1992 and 2005. He re-joined the board in 2015 and became chair in 2015.
Chaney will be succeeded by MacKenzie, who was BHP chair between 2017 and March this year. From 2005 until 2015 he served as managing director and CEO of packaging group Amcor.
What they said: "The group's businesses continue to navigate a complex operating environment," the company said.
"Cost of doing business pressures are persisting and weighing on business demand and investment, while the geopolitical risks present uncertainties to Australia's economic outlook.
"Despite these changes, the Australian economy remains resilient, supported by a strong labour market and moderating inflation, which are contributing to a modest improvement in consumer demand."
