Home / Knowledge / News / Apparel/Garments / Wesfarmers Limited revenue grows 6% in H1 FY20

Wesfarmers Limited revenue grows 6% in H1 FY20

Feb '20
Pic: Wesfarmers/ Kmart
Pic: Wesfarmers/ Kmart
Wesfarmers Limited, an Australian conglomerate with interest in apparel, retail, industrial and safety products, has reported net profit after tax (NPAT) of $1,210 million (Australian Dollars) for the half-year (H1) that ended on December 31, 2019. Group's revenue for H1 FY20 increased 6 per cent to $15,249 million compared to same period prior year.
Excluding the impact of the new lease accounting standard and discontinued operations, Wesfarmers' NPAT increased 5.7 per cent to $1,142 million.
"Bunnings, Kmart and Officeworks delivered a pleasing trading performance, with sales growth increasing relative to the prior corresponding period," Rob Scott, managing director, Wesfarmers Limited, said in a press release.
Revenue for Bunnings increased 5.3 per cent to $7,276 million for the half, with earnings increasing 3.1 per cent to $961 million. "Solid earnings growth was achieved despite a lower net property contribution due to fewer property sales, underpinned by an ongoing focus on store cost control and continued growth in consumer and commercial markets across all major trading regions and in all product categories," Scott said.
Kmart Group revenue increased 7.6 per cent to $4,990 million for the half. Kmart sales increased $241 million, more than offsetting a sales decline of $67 million in Target. Earnings for the division of $345 million were 9.9 per cent lower than the prior corresponding period. "Earnings growth was underpinned by a continued focus on lowest price positioning, strong operational execution and an enhanced product range delivering growth across all categories," Scott said.
"WesCEF continued its solid performance with revenue increasing 1.7 per cent to $889 million, as chemicals and fertilisers growth offset a decline in Energy due to lower prices," Scott said. "Earnings of $174 million were 5.9 per cent lower than the prior corresponding period, impacted by a decline in energy revenue, customers rolling on to new pricing under long-term contracts in the ammonium nitrate (AN) business and work to refine the AN emulsion product."
"Industrial and safety revenue declined by 2.1 per cent to $858 million, while earnings excluding payroll remediation costs were $21 million. Earnings were impacted by the disappointing performance in Blackwoods and a weaker performance from Workwear Group," Scott said. 
Officeworks' revenue increased 11.9 per cent to $1,231 million, with earnings of $79 million up 3.9 per cent on the prior corresponding period.
Other businesses and corporate overheads reported a profit of $72 million compared to a profit of $27 million in the prior corresponding period.
In their outlook, Wesfarmers reported that the group's retail divisions will remain steadfast in their focus on customers and will continue to invest in their offers to deliver even greater value, quality and convenience. Bunnings, Kmart Group and Officeworks will continue to enhance their digital offers to meet the changing needs of customers while expanding addressable markets and improving operating efficiencies. The performance of the Group's industrial businesses will continue to be subject to international commodity prices, exchange rates, competitive factors and seasonal outcomes. While demand from key end-markets is expected to remain robust, earnings in the WesCEF business are expected to be impacted by an oversupply of explosive grade ammonium nitrate in the Western Australian market.
The group's operating divisions are reportedly assessing the impact of the coronavirus outbreak, including the impact on supplier operations in affected regions. At this stage, the outbreak has not had a significant impact on the group's businesses, but the situation is being monitored closely.

Fibre2Fashion News Desk (JL)

Must ReadView All

Pic: Shutterstock

Textiles | On 14th Apr 2021

Sri Lanka to ban fabric imports

Sri Lanka is all set to ban the import of textile fabrics in a bid to ...

Pic: Sorbis / Shutterstock.com

Apparel/Garments | On 14th Apr 2021

Bangladesh apparel exports dip 2.55% in July-March FY21

Readymade garment exports from Bangladesh declined by 2.55 per cent...

Pic: Shutterstock

Textiles | On 14th Apr 2021

US proposal for global minimum corporate tax finds takers in Europe

The idea of a global minimum corporate tax floated by the US has...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

Virtual reality would be the new normal

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Sanjay Vakharia,

Sanjay Vakharia

One of the first few Indian denim brands, Spykar, established in 1992, was ...

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Kriti Kanodia,

Kriti Kanodia

A TV show in 2012 where actor Sonam Kapoor <g...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Daniel Roxbury, University of Rhode Island

Daniel Roxbury
University of Rhode Island

Assistant professor Daniel Roxbury and former URI graduate student...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search