Wesfarmers lifts dividend as bargain hunters boost profit to $1.47b
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The news: Perth-based conglomerate Wesfarmers boosted dividend payments as it posted a better-than-expected half-year profit of $1.47 billion, helped by cash-strapped customers turning to Kmart and Bunnings for bargains.
Australia’s largest listed conglomerate lifted its dividend to 95 cents per share, up from 91 cents per share last year.
The numbers: Analysts had forecast a modest lift in net profit after tax to $1.45 billion during the half, up from $1.43 billion over the same period last year.
The company said it anticipates net capital expenditure of $1.1 billion to $1.3 billion for the 2025 financial year, depending on property investments and project timelines.
The context: Wesfarmers said it navigated a “challenging” environment with households hurt by the cost-of-living crisis by focusing on efficiency and digitisation initiatives, which helped mitigate costs.
“Domestic cost pressures are likely to persist, driven by labour, energy and supply chain costs, and weakness in the Australian dollar,” it said.
The company also warned that despite the recent interest rate cut from the RBA, cost-of-living and business expenses would likely stay high and present a challenge for growth.
What they said: “The Group’s largest divisions performed well, with Bunnings and Kmart Group’s everyday low prices, market-leading offers and strong execution driving growth in transactions, sales and earnings,” said Wesfarmers managing director Rob Scott.
“Bunnings demonstrated the resilience of its offer, with strong consumer sales growth and continued sales growth in the commercial segment.”
The source: ASX
