Booming sales at Bunnings and Officeworks through the pandemic may have been a bright spot in Wesfarmers’ full-year results, but the conglomerate had 69 per cent drop in net profit.
Wesfarmers reported a $1.69 billion profit, down from $5.51 billion for 2019, partly due to $461 million in impairments including the troubled Target brand name, restructuring Kmart operations and costs in its industrial and safety business.
Wesfarmers is converting a number of Target stores to Kmarts as shoppers spend less at the former.
The group also no longer has the revenue from businesses it sold in 2019 such as the Bengalla Coal Mine in NSW, Kmart Tyre and Auto Service, Quadrant Energy and the demerger of Coles.
Yet the good news for the company was full-year sales were up 13.9 per cent at Bunnings, 20.4 per cent at Officeworks and 7.2 per cent at its Kmart group, which includes Target.
Online sales rose 60 per cent to $2.1 billion.
Customers spending more time at home due to COVID-19 restrictions were the reason for the improved sales.
Shareholders will receive a final dividend of 77 cents, and a special dividend of 18 cents from the sales of the group’s stake in Coles. Both are fully franked.
This is lower than the 2019 final dividend of 78 cents, and special dividend of 100 cents.
Shares were trading down 0.29 per cent to $48.74 at 1139 AEST.