Financial

Wesfarmers (ASX:WES) delivers strong FY24 results with higher revenue, net profit

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Wesfarmers reported a series of positive outcomes across various divisions for the fiscal year ended June 30.

Anthony Gianotti, CFO, highlighted that Wesfarmers achieved a revenue increase of 1.5% to $44.19 billion from $43.55 billion a year earlier.

Net profit after tax was up 3.7% to $2.6 billion, reflecting strong execution across the company’s well-positioned portfolio of businesses.

Among the year's highlights, Wesfarmers continued to make progress on growth projects, building climate resilience and long-term sustainability.

"Our strong operating performances in industrial and retail businesses have driven transaction growth and delivered sustainable returns," said Rob Scott, managing director of Wesfarmers.

Wesfarmers said its Kmart retail group was a standout, posting revenue growth of 4.4% in FY24, and that its Bunnings hardware chain demonstrated resilience, with revenue growth of 2.3%.

That was offset by a decline in its chemicals, energy and fertiliser business, which saw revenue drop by nearly 17%.

The retail, chemical, fertilizer, industrial and safety products company declared a final dividend of $1.07 per share with a record date of Sept. 4 payable on Oct. 9.

The company announced a full-year dividend increase of 3.7% to $1.98 per share.

Operating cash flows went up 9.9% to $4.6 billion, attributed to disciplined net working capital management and overall operational efficiency improvements.

Rob Scott also discussed the future outlook, affirming that Wesfarmers is well-positioned for continued demand growth amid demographic changes and anticipated economic scenarios.

The company intends to maintain its focus on productivity, digitising operations, and leveraging new avenues for growth, especially in the health and lithium sectors.

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