Kmart fuels stronger net income for Wesfarmers

Wesfarmers booked higher net income and revenue in the last fiscal year, with its discount department store chain Kmart contributing the most growth among its retail businesses.

The company’s net income grew 3.7 per cent to $2.56 billion, while revenue rose 1.5 per cent to $44.19 billion.

Kmart Group‘s revenue grew 4.4 per cent to $11.11 billion, while Bunnings Group’s revenue rose 2.3 per cent to $18.97 billion.

“Kmart Group’s performance was a standout, delivering significant earnings growth supported by the market-leading value credentials of its Anko products, unique sourcing capabilities and actions to reduce costs,” said Rob Scott, Wesfarmers MD.

“Bunnings demonstrated the resilience of its offer and ability to deliver growth through a range of market conditions, with higher sales growth recorded in the second half,” Scott noted.

He said the company’s house brand, Anko, delivered a positive sales performance at Target.

Officeworks also delivered 2.3 per cent growth, with revenue amounting to $3.43 billion, benefitting from above-market rise in the technology category.

“Officeworks’ widest range, low prices, best experience, and well-established every-channel offer make it well positioned to support value-conscious personal and business customers in the current environment,” said Sarah Hunter, Officeworks MD.

The online marketplace business Catch recorded a 35.9 per cent decline in sales to $227 million.

The Wesfarmer Health segment’s revenue jumped 5.9 per cent to $5.62 billion, while the Industrial and Safety segment rose 1.5 per cent to $2.02 billion, and WesCEF fell 16.9 per cent to $2.75 billion.

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