Wesfarmers’ first-half results have been bolstered by its Kmart stores recording a 114 per cent jump in earnings before tax.
Wesfarmers’ first-half results have been bolstered by its Kmart stores recording a 114 per cent jump in earnings before tax.
The ASX-listed giant reported a first-half profit of $1.38 billion to December 31, up from $1.21 billion during the same period in 2021.
Its earnings before interest and tax grew 13.4 per cent to $2.16 billion, up from $1.9 billion in 2021.
Wesfarmers’ Kmart stores recorded a 144 per cent increase in earnings before tax to $475 million, up from $222 million in the previous year.
WesCEF reported a 48.6 per cent jump to $324 million, Officeworks reported a 3.7 per cent increase to $85 million, and Bunnings recorded a 1.5 per cent increase to $1.27 billion.
“Kmart Group’s significant earnings result reflected strong operational execution, with comparable sales and volume growth, in addition to the impact of a normalisation in trading conditions following significant COVID-related restrictions in the prior corresponding period,” managing director Rob Scott said.
“Bunnings delivered pleasing sales and earnings results for the half, demonstrating the resilience of its operating model and the continued strong execution of its strategic agenda.
“Strong earnings growth in WesCEF was supported by favourable global commodity prices for LPG, ammonia and related products together with increased ammonia production and strong plant operating performances."
During the first half the company also focused on energy efficiency, renewable electricity and reducing market-based emissions, with Bunnings achieving a 43 per cent reduction in the period.
In today’s announcement, Wesfarmers reported costs at its half-owned Covalent Lithium project had increased by up to 37 per cent and its completion had been pushed back by six months.
The joint-venture project between Wesfarmers and SQM includes the Mt Holland mine in the Goldfields and a refinery in Kwinana, with the aim of producing battery-quality lithium hydroxide.
Wesfarmers said it estimated Mt Holland’s initial earnings would be generated in the first half 2024 from the increase in spodumene concentrate sales.
The first production of lithium hydroxide has been pushed back six months to the first half of 2025 due to labour issues, refinery engineering delays and COVID-19 restrictions.
Wesfarmers said preliminary feasibility studies to evaluate the expansion of the Mt Holland lithium mine and concentrator had begun.
On the ASX, Wesfarmers shares were up 1.46 per cent to trade at $49.41 at 3.40pm AEDT.
