Wesfarmers Limited has announced a net profit after tax (NPAT) of $2,261 million for the full-year ended 30 June 2013, an increase of 6.3 per cent on the previous corresponding period.
The group's retail businesses achieved solid growth in earnings before interest and tax (earnings) for the year of 7.7 per cent, with strong performances recorded in all businesses other than Target.
Coles division earnings were up 13.1 per cent for the year to $1,533 million and ahead of sales growth of 5.2 per cent. Fuel sales through the Coles Express-branded Shell outlets increased by 5.4%.
Bunnings recorded another very good result with earnings up 7.5 per cent to $904 million. Sales growth in Bunnings was 7.0 per cent for the year, after increasing by 10.2 per cent in the fourth quarter. Bunnings' return on capital (ROC) was a massive 25.9% for the second year running, which included the opening of 23 new outlets with 20 more planned for the 2014 financial year.
Kmart delivered very strong earnings growth, up 28.4 per cent to $344 million, building on the 31.4 per cent earnings growth achieved in the prior period. Kmart recorded another year of strong customer transaction and unit growth, which offset high levels of deflation, as it continued to improve its product range and reinvest better sourcing and operational efficiencies in lower prices on everyday items.
Target had a disappointing year with earnings falling to $136 million from $244 million recorded in the prior year. Sales and trading margins in Target were below the prior year, affected by price deflation across the store due to strong competition, as well as ongoing challenges in entertainment-related categories. Management changes made late in the second half led to the business undertaking high levels of clearance activity in the fourth quarter to reduce excess inventories, exacerbated by a late start to winter. Costs for the year were higher than planned, in part due to restructuring activities in the final quarter that are expected to provide future benefit.
Trading in Officeworks improved during the year, with the business achieving earnings growth of 9.4 per cent to $93 million.
