Australian conglomerate Wesfarmers has posted a net profit after tax (NPAT) of A$1.46bn ($0.927bn) for the first half (H1) of the fiscal year 2025 (FY25), reflecting a 2.9% increase from A$1.42bn in the same quarter of the previous year.
Basic earnings per share (EPS) for Wesfarmers also rose 2.9%, from A$125.8 to A$129.4 in H1 FY25.
For the period ending 31 December 2024, revenue was up 3.6% to A$23.49bn, compared with A$22.67bn in the same period of FY24.
Wesfarmers’ earnings before interest and tax (EBIT) increased 4.7% to $2.29bn, up from $2.19bn in the previous year.
The company’s hardware retail division, Bunnings, contributed significantly to this growth, with revenue rising 3.2% to A$10.28bn over the period. Total store sales grew 3.5%, and store-on-store sales saw a 3.4% increase.
Bunnings reported a 3.2% increase in EBIT, excluding net property contributions, totalling A$1.32bn.
Kmart Group, the company’s department store chain, posted a 2.0% increase in revenue, totalling A$6.10bn. Kmart’s comparable sales grew 1.9%.
The Kmart division saw a 6.5% growth in EBIT, with earnings rising 7.2% to $644m, driven by strong performance in apparel and the successful introduction of Anko products in Target.
Wesfarmers managing director Rob Scott stated: “During the half, cost of living and cost of doing business pressures continued to significantly impact many households and businesses. In this environment, the divisions remained focused on long-term shareholder value creation, investing in even greater value, service and convenience for customers. Proactive efficiency and digitisation initiatives helped mitigate higher costs, while enabling divisions to enhance the customer experience.
“The group’s largest divisions performed well, with Bunnings and Kmart Group’s everyday low prices, market-leading offers and strong execution driving growth in transactions, sales and earnings. The retail divisions benefited from households prioritising value, and from new and expanded ranges and offerings that helped grow their addressable markets.”
Wesfarmers also reported strong performance in the first six weeks of the second half of FY25, with Bunnings and Officeworks maintaining sales momentum.
Kmart Group experienced stronger sales growth in the second half, boosted by the success of its Anko product line.
