Wesfarmers reports rising profits driven by Bunnings and Kmart

Wesfarmers reported a resilient FY26 performance, driven by strong results from its Bunnings and Kmart Group divisions. The conglomerate's total revenue rose 3.4 percent to AU$47.3 billion, while underlying net profit after tax increased 8.3 percent.

Bunnings recorded revenue of $20,399 million, a 4.1 percent increase, with earnings rising 5.1 percent to $2,455 million. The hardware retailer saw growth across all regions and product categories, supported by digital sales and the launch of an AI-powered assistant, ‘Buddy’. Kmart Group also saw growth, with revenue up 2.8 percent to $11,751 million and earnings rising 6.0 percent to $1,109 million. Kmart's digital sales, including marketplace gross merchandise value, grew 19.7 percent in the second half of the year.

In contrast, Officeworks experienced a decline in earnings, which fell 22.2 percent to $165 million, despite a 3.7 percent increase in revenue. This decline was attributed to one-off costs associated with a major transformation program.

Looking ahead, projections suggest Wesfarmers could see continued earnings per share growth in FY27, with potential annual dividends reaching approximately $2.40 per share, representing a grossed-up yield of 4.3 percent.