Wesfarmers Delivers $2.9b Profit and $1.7b Dividend Windfall
Wesfarmers has once again proven its strength in the market, posting a sharp lift in profits despite all the talk about cost-of-living pressures weighing on households. For the financial year just ended, the company reported a net profit of $2.9 billion, which marks a 14% increase on last year’s result. That kind of growth, in a climate where many businesses have struggled, shows just how resilient its portfolio really is.
The company’s success is being shared directly with its investors. A final dividend of $1.11 per share was declared, bringing the full-year dividend to $2.06 per share. On top of that, shareholders will also receive a special distribution of $1.50 per share. In total, that’s a staggering $1.7 billion in extra returns. It’s being described as something of a farewell gift, with long-serving chairman Michael Chaney stepping down after nearly four decades at Wesfarmers. He’ll be replaced by Ken MacKenzie, who now takes over at a time of real strength for the group.
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The numbers are even more impressive when broken down by business unit. Bunnings, the hardware giant that has become a household name in Australia, lifted its earnings to $2.3 billion. Kmart Group, which includes Target, also enjoyed a strong year with a 9.2% rise in earnings, reaching $1 billion. Even Officeworks, which operates in a competitive space, managed to edge higher with a 1.9% gain to $212 million.
What stands out is that this profit surge came in the middle of rising costs and ongoing economic pressure for consumers. Analysts have pointed out that Wesfarmers’ ability to hold onto its pricing power and keep products affordable has actually been an advantage, as customers flocked to its stores looking for value. Market commentators even suggested that its supply chain strength and focus on low prices gave it a competitive edge that allowed margins to expand rather than shrink.
Wesfarmers has also signaled that investment in its retail network is continuing. A new “Plan C+” format for Kmart stores, which introduces a refreshed layout and improved customer experience, is being rolled out after successful trials. Early indications are that the new format has driven better trading performance, so more stores will follow.
Shares in Wesfarmers were trading slightly higher in early Thursday activity, sitting around $91.78, and the stock has already rallied more than 28% this year. Some analysts say the company is priced for perfection, but these results suggest it has earned that status.
All in all, while some major Australian companies like Mineral Resources have struggled with losses, Wesfarmers is exiting the reporting season on a high note. Shareholders are being rewarded handsomely, its retail brands remain strong, and leadership transition is happening at a moment of stability. For a company that owns names like Kmart, Bunnings, Target, and Officeworks, it’s a performance that reflects both consumer loyalty and a well-executed strategy.
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