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As the 2024 fiscal year reporting season nears its end, major Australian companies have disclosed their financial performance, shedding light on their achievements and challenges. Among these are Wesfarmers Ltd (ASX:WES), Southern Cross Media Group Ltd (ASX:SXL), and Qantas Airways Ltd (ASX:QAN), each presenting significant insights into their operations over the past year.
Wesfarmers Ltd (ASX:WES)
Wesfarmers, a conglomerate with a diverse portfolio that includes Bunnings, Kmart, Officeworks, and more, reported a 3.7% increase in statutory net profit, reaching $2.56 billion for FY24. This marks a notable growth compared to the previous fiscal year. The company’s revenue experienced a modest rise of 1.5%, bringing it to $44.19 billion, aligning with market expectations. Reflecting this growth, Wesfarmers announced an increased dividend of $1.98 per share, fully franked.
Breaking down the performance of its individual segments:
- Bunnings: Revenue grew by 2.3% to $18.97 billion.
- Kmart: Achieved a 4.4% increase, with revenue reaching $11.11 billion.
- Officeworks: Saw a 2.3% rise, bringing revenue to $3.43 billion.
- Wesfarmers Chemicals, Energy and Fertilisers (CEF): Experienced a decline of 16.9%, with revenue falling to $2.75 billion.
- Industrial and Safety: Recorded a 1.5% increase, with revenue totaling $2.02 billion.
- Wesfarmers Health: Grew by 5.9%, with revenue reaching $5.62 billion.
- Catch: Suffered a significant drop in revenue by 35.9%, falling to $227 million.
These results highlight Wesfarmers' ability to maintain steady growth across its key segments, despite challenges in specific areas like CEF and Catch.
Southern Cross Media Group Ltd (ASX:SXL)
Southern Cross Media, known for its extensive network of over 99 radio stations under the brands Triple M and Hit, as well as broadcasting 96 free-to-air TV signals across regional Australia, faced a challenging year. The company reported a 1% decrease in revenue, totaling $499.4 million for FY24. This decline was mirrored in its underlying EBITDA, which fell by 14% to $66.2 million.
The company's underlying NPAT was hit hard, dropping 49% to $11.2 million, down from $21.9 million in FY23. In response to these results, Southern Cross Media opted to cancel its final dividend for the year. Additionally, the company is in active negotiations to sell its non-core television assets, signaling a strategic shift in focus.
Qantas Airways Ltd (ASX:QAN)
Qantas Airways, Australia’s flagship carrier, reported a 28.3% decline in statutory profit after tax for FY24, bringing the figure to $1.25 billion, down from $1.74 billion in FY23. Despite this drop in profit, Qantas saw a 10.7% increase in revenue and other income, totaling $21.94 billion for the year.
The airline did not declare or pay any dividends during FY24. However, it reported statutory earnings per share of 75.9 cents as of June 30, 2024, a decrease from 96 cents the previous year. Qantas also indicated that future profits could face pressure due to weakening demand for travel, following the peaks experienced in prior periods.
Bottomline
These results from Wesfarmers, Southern Cross Media, and Qantas provide a comprehensive snapshot of their financial performance during FY24, highlighting both growth and challenges across various sectors. As these companies navigate the evolving economic landscape, their strategic decisions will play a crucial role in shaping their future trajectories.
