Hardware and office supplies have driven strong sales growth for conglomerate Wesfarmers in a full-year result overshadowed by the billion-dollar cost of its Bunnings UK disaster.
The retail giant posted a net profit for 2017/18 of $1.2 billion, down 58 per cent from $2.87 billion a year ago after more than $1.3 billion in losses and costs on Bunnings UK and a $300 million writedown on local department chain Target.
Wesfarmers managing Director Rob Scott said the group had repositioned in a year of "significant change" - with major moves including the announced divestment of supermarket chain Coles.
"The three key priorities for the year were to address areas of underperformance, reposition the portfolio and drive opportunities for growth, with good progress made against each of these," Mr Scott said.
"The proposed demerger of Coles, and the divestments of (coal mine) Curragh and (Bunnings UK) during the year, demonstrate a disciplined approach to capital allocation and portfolio management, and will reposition Wesfarmers for the next decade."
Bunnings Australia and New Zealand lifted pre-tax earnings 12 per cent to $1.5 billion, while Coles - which is destined to be spun off by November - recorded a 6.8 per cent drop in earnings to $1.5 billion.
Target suffered a five per cent decline in comparable sales growth in the year and Wesfarmers announced that Guy Russo, who guided the successful turnaround of Kmart, will retire as chief executive of its department stores division, to be replaced by Kmart managing director Ian Bailey.
Chief financial officer of the division Marina Joanou has taken over Mr Russo's role as managing director of Target.
Mr Scott said the controversy surrounding Coles's move to ban non-reusable plastic shopping bags last month - only to backflip on the decision after public complaints - had created a lot of noise but little impact.
"It had an impact on our business and I'm sure for most people it would have an impact in the first week or so," he said.
"But following that, the impact hasn't been material so it would be wrong to assume there's been any sustainable or material impact from plastic bags on the sales of Coles."
The supermarket chain reaffirmed its commitment to phase out plastic bags by the end of August .
Wesfarmers recorded a $123 million profit on its sale of the Curragh coal mine during the year.
Excluding significant items, profit after tax from continuing operations rose 5.2 per cent to $2.9 billion for the year ended June 30, and the group declared a fully-franked final dividend of $1.20 a share, unchanged from a year earlier.
Wesfarmers shares, which have risen sharply since May, lifted $1.61, or 3.2 per cent, to a new record high of $52.20.
UK HARDWARE WEARS DOWN WESFARMERS
* 2017/18 net profit down 58 per cent to $1.20 billion
*Revenue up 3 per cent to $66.883 billion
*Final dividend $1.20, fully franked
Bagikan Berita Ini
0 Response to "Wesfarmers rebuilds after hardware pain"
Post a Comment