Wesfarmers has reported a 14.1% increase in net profit after tax (NPAT) to $1.3 billion and 27% increase in revenue to $22.5 billion for the half year ended 31 December 2022.
Kmart Group saw revenue increase 24.1% to $5.7 billion with earnings up 114% to $475 million, reflecting sales growth across all categories and a normalisation in trading conditions following Covid-related restrictions in the prior corresponding period.
“Target’s performance reflected continued improvements in the product offer particularly in apparel and soft home. The full benefits of the significant network change program undertaken across Kmart and Target were also able to be realised,” Wesfarmers managing director, Rob Scott said.
There were also ongoing investments in the Kmart and Target apps, and the launch of in-store benefits for OnePass members.
For Bunnings, revenue was up 6.3% to $9.7 billion with earnings increasing 1.5% during the half. Sales were supported by strong growth from commercial customers and resilient consumer demand.
“Bunnings continued to focus on delivering great value for customers and strengthened its offer through the refresh and expansion of its range and the trial of new store-in-store concepts,” Scott said.
Officeworks’ revenue increased 4.5% to $1.6 billion with earnings up 3.7% to $85 million, supported by an increase in demand across key categories including print and create, stationery, art and education, which were impacted by lockdowns in the prior corresponding period.
“The sales mix towards lower-margin technology and furniture categories declined for the half, but remains higher than pre-Covid levels. Earnings growth was supported by sales growth and a focus on productivity initiatives, partially offset by continued price investment and higher promotional activity,” Scott said.
Officeworks has delivered productivity improvements at its Victorian Customer Fulfilment Centre (CFC) and made progress on the development of a Western Australian CFC.
Catch reported a loss of $108 million for the half including restructuring costs of $33 million relating to inventory provisions, redundancies and asset write-offs. Its gross transaction value (GTV) declined by 26.8%.
“The financial performance of Catch reflected operational and execution challenges, in addition to the broader decline in online retail demand during the period,” Scott said.
“Catch’s earnings were impacted by lower margin in the in-stock business due to increased clearance activity, as well as higher fulfilment and delivery costs associated with layout and process inefficiencies during commissioning of the new Moorebank fulfilment centre in NSW.
“Restructuring activities to reduce overhead costs commenced in December 2022 and additional commercial controls on range and inventory management have been implemented.”