Wesfarmers has recorded net profit after tax (NPAT) of $2.55 billion for the full year ended 30 June 2024, an increase of 3.7% on the prior year. Revenue was up 1.5% to $44.18 billion.
Kmart Group was the best-performing division for the group, posting a 4.4% increase in revenue to $11.1 billion and a 24.6% increase in earnings to $958 million, representing a record for the business. Sales growth reflects a continued strong response to the Anker product offer and Kmart’s lowest price positioning. Sales increased across all categories with units sold, transaction volumes and customer numbers growing on the prior year.
Total sales for Target declined 4.5% for the year but earnings were positive for the year and second half. The integration of the Kmart and Target processes, systems and organisational structures to achieve one operating model across the two brands progressed in line with expectations. The introduction of Anko products has also performed in line with expectations since launch.
Bunnings reported a 2.3% increase in revenue to $18.96 billion with earnings inching up 0.9% to $2.25 billion. Sales growth was recorded in both consumer and commercial customer segments with sustained demand for ongoing repairs and maintenance, growth in online channels and range innovation, partly offset by a market-wide softening in building activity. Growth in transactions and units sold was driven by bulk pack quantities, own brand and entry level ranges performing well.
Officeworks saw revenue increase 2.3% to $3.43 billion and earnings increase 4% to $208 million. Sales growth reflected strong Black Friday and End of Financial Year trading, as well as Back to School as the business cycled the NSW government’s back-to-school voucher program. Officeworks also benefitted from above-market growth in technology as it continues to evolve its product offer.
Wesfarmers managing director, Rob Scott said, “We expected a challenging year and there were numerous headwinds to navigate with cost-of-living pressures, rising costs of doing business, subdued activity in residential construction and significant volatility in key commodities. In this environment, our divisions maintained their focus on profitable growth and shareholder returns by delivering more value, choice and reliability to our consumer and commercial customers.”
For the first eight weeks of the 2025 financial year, Kmart Group delivered sales growth broadly in line with the second half of FY24. Bunnings continued to see positive sales growth, although a moderation from the second half of FY24 and Officeworks delivered sales growth slightly ahead of the second half of FY24.