Wesfarmers Provides Kmart Group Update And Expected FY2020 Significant Items

  • May 22, 2020 12:52 PM AEST
  • Team Kalkine

Wesfarmers Limited (ASX:WES) has updated on the review of Target, which include changes to the Target and Kmart store networks.

Gold MTF non-AMP

  • The first stage of Target review has pointed measures to speed up the growth of Kmart & address the unsustainable financial performance of Target.
  • WES would look at redeployment prospects in Kmart & other WES businesses. This would reduce the effect of these changes on Target team members.

In FY2020 results, the company anticipates:

  • Restructuring costs & provisions in Kmart Group in between ~$120 to $170 million before tax.
  • Non-cash impairment in Kmart Group would lie in between ~$430 to $480 million before tax.
  • Non-cash impairment in the Industrial & Safety division of ~$300 million before tax.
  • Pre-tax gain on sale of 10.1% interest in Coles of $290 million.

 


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