Company Interview / Wesfarmers hammers home profit

Key points:

Wesfarmers (ASX:WES) reports 14.4% profit rise with strong results from Bunnings and KmartDeclares total $2.06 full-year dividend and $1.50 special distribution following asset salesKmart’s Anko brand driving growth domestically and internationallyOngoing productivity initiatives, investment in AI and supply chain efficiencyGroup remains vigilant on economic uncertainty, inflation, and regulatory environment

Wesfarmers (ASX:WES) has delivered a robust full-year profit result, posting a 14.4% rise to $2.9 billion. Rob Scott points to standout performances from Bunnings, Kmart and Officeworks, attributing the solid results to relentless focus on strong value propositions, operational productivity, and leveraging digital efficiency and AI across the group. A highlight for shareholders is a full-year dividend of $2.06 per share, up 4%, including a special $1.50 per share distribution enabled by asset sales such as coal gas and LNG/LPG businesses, leaving Wesfarmers with a notably low debt position.

Scott outlines that positive consumer sentiment and spending have picked up, accredited to moderating inflation and recent interest rate cuts. He observes enduring demand for value, notably through Kmart's Anko brand, which is now benefitting from modest sales growth—both domestically and internationally in the Philippines and via distribution partners such as Walmart in Canada and Mattel. Despite some challenges including lower global commodity prices impacting the chemicals and fertilisers division, the lithium business is showing early promise with expectations for price recovery.

Scott also expresses concerns over persistent cost of doing business pressures, ongoing geopolitical risks, and heightened retail crime in Victoria, emphasising the need for regulatory evolution. Careful succession planning continues, with Ken McKenzie announced to succeed Mike Chaney as chair next year.