Desktop Broker TV

One of the top ten companies on the ASX, Wesfarmers (ASX:WES), the owners of Bunnings, Kmart and Officeworks reported its full year financial results, here’s what you need to know.

The shift to working from home coupled with economic stimulus to households put a fire cracker up Bunnings, Officeworks and Catch sales, which fueled up net profit after tax (NPAT) by 8% to $2.1 billion. This result was better than what the market was expecting, but if you take out discounted operations, i.e. the Coles business, then you’d see its profit fell 69% to $1.7 billion and that was under what the market expectations.

Wesfarmers' revenue grew 11% to $30.8 billion, with online sales soaring 60% due to COVID-19.

Its earnings before interest and tax (EBIT) fell slightly to $2.9 billion, this was in line with expectations, with its Bunnings and Officeworks businesses driving revenue.

The $55 billion company declared a final dividend of 77 cents per share and a special dividend of 18 cents per share (for the Coles sale), taking its total full-year payout to $1.52 a share. What’s important here is if you buy WES shares before August 25, you’ll be entitled to the 77 cent per share div payable on 1 October.

Looking ahead, like many companies, WES did not provide official guidance, however did warn that COVID-19 presents significant uncertainty for its operating environment.