Wesfarmers 2018 Half-Year Results

Wesfarmers Limited has reported a net profit after tax (NPAT) of $212 million for the half-year ended 31 December 2017. The reported profit includes post-tax significant items of 1,323 million relating to Bunnings United Kingdom and Ireland (BUKI) and Target. Excluding these significant items, NPAT for the half-year decreased 2.7 per cent to $1,535 million.

Managing Director Rob Scott said the continued strong momentum in Bunnings Australia and New Zealand (BANZ), Kmart and Officeworks, in a competitive retail environment, was a highlight for the half.

“Strong production volumes and higher coal prices in the Resources business contributed to a significant increase in the Industrials division’s earnings,” Mr Scott said. “Higher earnings across a majority of the Group’s businesses were offset by losses in BUKI and lower Coles earnings following planned investments in price and service.

“The Group generated record operating cash flows of $2,897 million for the half, supported by proactive working capital management. Strict capital disciplines were maintained and the Group retained a very strong balance sheet, with improvements achieved in its credit metrics.

“In December 2017, the Group announced an agreement to sell the Curragh coal mine for $700 million, which also includes a value share mechanism1 that allows Wesfarmers to participate in possible future coal price increases. On successful completion of the transaction, which is subject to a number of conditions precedent, the Group expects to record a post-tax profit on sale of approximately $100 million.

“In line with the Group’s dividend policy, which considers earnings, cash flows, franking credits and credit metrics, the directors have declared an interim dividend of $1.03 per share, in line with the previous corresponding period.”

For full details, please refer to the links below:

2018 Half-year Results Briefing Presentation
2018 Half-year Report (incorporating Appendix 4D)
2018 Half-year Results Supplementary Information 
Dividend/Distribution - WES
2018 Half-year Results Shareholder Quick Guide