15/11/2023 09:13

Wesfarmers (WES) $53.24

We all link Wesfarmers to their ownership of Bunnings, which now makes up ~60% of their earnings (after they spun out Coles in 2018). While Bunnings continues to deliver for WES, their broader business is at an interesting juncture. WES is about to become a significant Lithium producer via its 50%  ownership of the Mt Holland mine around 500 km east of Perth, which is expected to come online in the second half of 2024, with earnings flowing into FY25.

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25/08/2023 17:32

Wesfarmers (WES) $51.00

WES +3.2%: A solid FY23 result for Wesfarmers today, led by Bunnings,  while trading conditions to start FY24 have been resilient. Revenue of $43.6bn was up +18% and a touch ahead of the $43bn expected, while pre-tax earnings of $3.64bn was up +6.7% and compared well to consensus of $3.62bn. They declared a final dividend of $1.03 putting the FY payout to $1.91, above the $1.84 tipped

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31/05/2023 09:10

Wesfarmers (WES) $49.30

The group hosted a strategy day yesterday at a significant juncture in the company’s history as they continue to shift from its heavy retail exposure to a growing portion of earnings coming from health & chemicals. Bunnings has made up the bulk of earnings since the demerger of Coles in 2018, and the company sold its final stake in the supermarket 6 weeks ago which sees the company flush with cash for capex spend and/or dividends.

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21/04/2023 09:39

Active Income Portfolio – Amendments

We are trimming various holdings across the Income Portfolio to raise cash levels.

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15/02/2023 16:55

Wesfarmers (WES) $49.35

WES +1.33% : A solid result today from Wesfarmers with revenue up 27% Y/Y to $22.6bn which was above consensus of $20.5bn, driving a ~9% beat to earnings before tax (EBT) while they declared a 1H23 dividend of 88cps.

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21/12/2022 09:27

Wesfarmers (WES) $45.34

One of our concerns leading into 2023 is for retail stocks that have run higher on recently good sales numbers – or at least numbers better than expected – however, interest rates will bite in 2023 and household savings levels will decline. While the obvious extrapolation is likely to weigh on the property names, we are actually more concerned about retail...

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03/11/2022 09:34

Wesfarmers Ltd (WES) $46.80

WES has endured a 40% correction since August 2021, we now believe solid value has returned to this diversified business plus an attractive yield is looming in early 2022. The company delivered better-than-expected FY22 results in August including and earnings beat of around 5%. No guidance was provided, which is customary for WES, but they did talk about positive trends playing out at the start of FY23 and we can see the stock rallying into its next result in February.

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26/08/2022 17:12

Wesfarmers (WES) $47.95

WES +0.65%: A better than expected FY22 results from Wesfarmers today with all key metrics coming in ahead of consensus expectations with net profit after tax around a 5% beat. While FY22 profit was down 1.2% on FY21, that was a result of a tough 1H with 2H earnings growth of 13.1% showing a strong rebound. The 2H dividend of $1 was a beat and...

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20/07/2022 09:27

Active Income Portfolio

The portfolio was up +0.68% for the week with cash still sitting at 2%, although we will get a further inflow given the redemption of the CWNHB which implies the true cash position is ~6%. Pendal (PDL) was the top performer during the week up +5.48% - more on this below, while Service Stream (SSM) +3.13% and Wesfarmers (WES) +2.68% also did well, pleasingly these...

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13/07/2022 10:29

Active Income Portfolio – Amendments

We are making a number of changes to the Income Portfolio.

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