Wesfarmers (ASX:WES) delivers bumper half-year results backed by strong sales and earnings growth

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Wesfarmers (ASX:WES) delivers bumper half-year results backed by strong sales and earnings growth

 Wesfarmers (ASX:WES) delivers bumper half-year results backed by strong sales and earnings growth

Summary

  • Wesfarmers Ltd (ASX:WES) witnessed a bumper half-year period ended 31 December 2021 on strong sales and earnings growth across its retail businesses.
  • Wesfarmers reported a statutory net profit after tax (NPAT) of A$1,390 million during the period. 
  • The company’s board also announced an interim dividend of 88 cents per share.

How Wesfarmers’ (ASX:WES) profit zoomed 25% despite COVI

Wesfarmers Ltd (ASX:WES) on Thursday reported robust earnings for the half-year ended 31 December 2021, marked by strong sales and earnings growth across its retail businesses. The company also said that there was an improvement in industrial and safety performance during a period of continued disruption and uncertainty due to the coronavirus pandemic.

Wesfarmers reported a statutory net profit after tax (NPAT) of A$1,390 million during the period. NPAT from continuing operations, excluding significant items, rose by 25.5 per cent to A$1,414 million. The company’s board also announced an interim dividend of 88 cents per share.

Image Source: Wesfarmers ASX update, 18 February 2021

Strong performance by Bunnings, Kmart Group and Officeworks

Commenting on the financial results, Wesfarmers Managing Director Rob Scott said a strong performance by Bunnings, Kmart Group and Officeworks demonstrates their ability to adapt to changing customer preferences and provide a safe environment for customers and team members. He added that the result in Chemicals, Energy and Fertilisers (WesCEF) reflected a solid operating performance..

Online sales double

Wesfarmers said that total online sales across the Group more than doubled for the given half, excluding Catch. The online sales stood at A$2.0 billion for the first half, including the Catch marketplace.

Image Source: © Cmmeraydave | Megapixl.com

Retail business

The retail businesses across the Group remained robust through January and February, even as the government-mandated trading restrictions in Victoria, Western Australia and New Zealand posed some impact. However, growth in retail sales was expected to moderate from March as the businesses started to recover from the initial impacts of the coronavirus pandemic in the prior year, particularly in Bunnings and Officeworks.

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Outlook

The Group’s portfolio of cash-generative businesses with leading market positions is on track to deliver satisfactory shareholder returns over the long term. 

Stock performance 

Shares of Wesfarmers closed down 0.46 per cent to A$54.15 on Wednesday, 17 February 2021, against the previous closing on Tuesday, 16 February 2021.

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