Against the backdrop of a widespread cost-of-living squeeze hitting households across Australia, retail giant Wesfarmers has delivered an unexpectedly resilient full-year financial performance, with its two flagship discount-focused brands Bunnings and Kmart attracting growing numbers of budget-conscious shoppers. The Perth-based conglomerate, which operates across multiple retail and industrial segments, released its full-year earnings report on Thursday, revealing a net profit of $2.87 billion — a marginal 1.8% decline from the prior financial year.
Wesfarmers Managing Director Rob Scott attributed the company’s solid performance to its deliberate long-term strategy of prioritizing everyday low prices, a positioning that has resonated strongly with consumers navigating rising inflation and stagnant wage growth. “Bunnings and Kmart Group’s everyday low prices continued to drive sales and earnings growth,” Scott stated in the company’s official release. “Disciplined execution of strategies helped offset broad-based cost pressures and delivered operating leverage across both businesses.”
Heading into future trading periods, Scott confirmed that price competitiveness will remain a core strategic pillar, as the company acknowledges that persistent inflation continues to stretch household and business budgets across the country. “While Australian consumer demand remains resilient, cost-of-living pressures continue to affect many households across the economy,” he added. “Uncertainty regarding the outlook for inflation, house prices, interest rates and tax settings are affecting consumer sentiment, while higher costs of doing business are weighing on business confidence and spending.”
Breaking down segment performance, Bunnings, Wesfarmers’ home improvement and outdoor living retail chain, once again carried the bulk of the group’s earnings growth, posting a 5.1% rise in earnings to reach $2.455 billion for the 12 months ending June 30. Discount department store chain Kmart Group matched that momentum, with earnings climbing 6% to hit $1.11 billion, while total sales for the brand rose 2.8% to $11.7 billion.
The strong results from Bunnings and Kmart were partially offset by a sharp downturn at office supplies retailer Officeworks, where earnings fell 22.2% to just $165 million, reflecting softer business and consumer demand for office goods post-pandemic. Across the entire Wesfarmers group, total annual revenue rose 3.4% year-on-year to $47.27 billion. Excluding one-off significant items, earnings before interest and tax increased by 7.3% to $4.49 billion.
In a positive signal to shareholders, the company confirmed it will issue a fully franked final dividend of $1.20 per share, payable to investors on October 7.
Bunnings and Kmart sales grow as shoppers hunt for lower prices
