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REPORTING SEASON: Wesfarmers Ltd (WES)

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Figure 1: Wesfarmers Ltd 12 month chart

 

Wesfarmers release yearly results

·         Wesfarmers has reported a 19% increase in NPAT to $2.69Billion from $2.26Billion a year earlier. The result was ahead of the markets expectations. On average analysts had expected a net profit of $2.49Billion.

·         A feature of the result was the plan to return $1.1Billion to investors through a $1 per share distribution following the sale of the insurance underwriting business earlier in the year.

·         At a divisional level there were good performances from the usual businesses. Coles’ Earnings Before Interest and Tax (EBIT) rose by 9%. The same measure rose by almost 11% for Office Supplies and 8.3% for the Home Improvement division. Kmart posted EBIT of $366Million up 6.4%.Target remained the perennial underperforming business with EBIT falling by almost 37% to $86Million, their revenue declining 4.3% to $3.5Billion. To this end management is focussed on fixing the basics and claims that while progress has been made with improvements in store standards, queue reduction, stock availability and the online experience, ‘much work remains to be done’. Encouragingly, customers responded positively when improved fashion, style and quality were delivered at lower prices.

·         The record date for entitlements to the dividend is the 2nd September 2014. The date the final dividend is payable is the 9th of October 2014.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Tom Piotrowski, Market Analyst,