Wesfarmers (WES) investor relations material

Executive summary

• Revenue increased 3.1% year-over-year to $24.2 billion, with net profit after tax up 9.3% to $1.6 billion, driven by strong performances in Bunnings, Kmart Group, and WesCEF, and supported by productivity initiatives and digital transformation.

• Interim fully-franked dividend rose 7.4% to $1.02 per share, and a $1.50 per share capital management distribution was paid in December, totaling $1.7 billion.

• Sustainability progress included a 27.8% reduction in Scope 1 and 2 emissions, 100% renewable energy in retail businesses, and 22.6% more rooftop solar capacity.

• All divisions except Officeworks grew earnings; Officeworks' decline was due to transformation program costs.

• Investments in technology, sustainability, and climate resilience advanced, with improved safety metrics.

Financial highlights

• EBIT rose 8.4% to $2,493 million; basic EPS up 9.3% to 141.4 cents.

• Free cash flows increased 35.6% to $2,745 million, aided by asset sales.

• Net financial debt increased to $4.9 billion, with Debt/EBITDA at 1.9x.

• Return on equity (excluding significant items) improved to 32.7%.

• Operating cash flows declined 3.3% to $2,491 million due to higher tax paid.

Outlook and guidance

• Retail divisions are expected to drive profitable growth, leveraging value credentials, omnichannel investments, and expanding markets.

• Bunnings and Officeworks sales growth in early second half in line with first half; Kmart Group sales growth stronger.

• WesCEF’s lithium refinery ramp-up extended due to odour issues, but second half earnings expected to be slightly ahead of first half.

• Net capital expenditure for FY26 expected between $1,000 million and $1,300 million, excluding BPI sale proceeds.

• Continued investment in technology and productivity to mitigate inflationary pressures.