Bunnings, Officeworks leads Wesfarmers result (WES)
Wesfarmers (WES) -0.20%
A good result out of WES today and although the stock finished slightly lower that should be viewed against the backdrop of the stock trading at all-time highs. When looking at WES, the EBIT line in the critical one and todays result was inline, however the highlight was Bunnings which delivered FY20 LFL sales growth of +14.7% (1H20 +4.7% vs. 2H20 +25.8%). Outlook expected to “moderate” but an incredible number none-the-less.
Elsewhere, Kmart was mixed while Target is still a struggle. Officeworks doesn’t get enough love or attention, but performance is mostly rock solid – and again in FY20 with EBIT +14% and sales growth of 20%. The final dividend of 77cps was in line with expectations while they also declared a special dividend of 18cps. WES has a strong balance sheet with no debt and cash of $471m while their outlook statement was – as per usual – generic with little of substance.
Wesfarmers (WES) Chart
