WES +1.33%: Announced strong first-half results led by a slight beat on the revenue line with their chemicals and fertilizer (inc. lithium) segment growing strongly.
- 1H25 Revenue $23.49bn (+3.6% y/y), estimate $23.38bn
- 1H25 Chemicals, energy & fertilizers revenue $1.21 billion (+9.5% y/y)
- 1H25 EBIT of $2,299mn, +2% above consensus
Management noted the Group’s retail divisions continued to trade well in the first six weeks of the 2H25 and mirror that of first-half sales – Bunnings, Kmart and Officeworks sales growth of 3.2%, 2% and 4.7% inline with consensus 2H sales growth at 3.8%. Management didn’t provide guidance as usual and noted they are seeing resilience in the consumer but are still seeing significant cost pressures driven by labour, energy and supply chain, as well as weakness in the AUD.
Management’s longer term plan to diversify away from strictly retail exposure and move toward other alternative revenue sources such as lithium is starting to pay off.
MM is neutral WES ~$80
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