Around the same time as Woolworths was reporting its first loss, Wesfarmers was announcing its own less than optimal end of year result.
Wesfarmers’ full year profit was some 83% down, despite Coles and Bunnings doing well, due largely to write downs related to troubled Target and its coal mining operation.
To the positive, overall Home Improvement revenues and EBIT were both well up, as you can see below, and for the first time included the contribution of Homebase from 28 February 2016.
AU$m FY2015 FY2016
Revenue 9,534 11,571 +21.4%
EBIT 1,088 1,214 +11.6%
“Bunnings Australia and New Zealand produced another very strong result,” said Wesfarmers MD, Richard Goyder, from total store sales of AU$10,568 million (+11.1%) and store-on-store sales +8.1% for the year, reflecting “the solid execution of its strategic agenda”.
From the UK & Irish side of things and Homebase, the Aussie year end result details little, apart from the fact that Homebase’s contribution to this year’s Wesfarmers NPAT was “insignificant”.
Still, for the record, Bunnings United Kingdom & Ireland’s sales for Wesfarmers’ four months of ownership were £512 million (AU$986 million) and earnings (after restructuring and one-off repositioning costs) were £0.5 million (AU$1 million), as expected. Like for likes were +7.5%.