Wesfarmers reported an 8.3% rise in half-year net profit after tax to AUD 2.9 billion for the six months ended June 30, 2026, excluding significant items from the prior period. The group declared a total dividend of AUD 2.22 per share, a 7.8% increase and fully franked, with a final dividend of AUD 1.20 per share. The dividend yield stood at 7.67%, supported by a 35-year streak of consecutive payments.
Shares slipped 1.38% in early trading to AUD 82.12, valuing the company at AUD 20.05 billion. The stock has traded between AUD 70.80 and AUD 94.70 over the past 52 weeks. Return on equity reached 34%, while gross profit margin stood at 68.67%. Free cash flow rose 15.8% to AUD 4 billion, though group operating cash flow declined 6.5% due to working capital investments in WesCEF and Health.
Bunnings reported a 5% increase in earnings to AUD 2.45 billion, excluding property, with total sales growth of 3.9%. Marketplace gross merchandise volume grew over 25%. Kmart Group’s earnings climbed 6% to AUD 1.1 billion, following price reductions on more than 2,500 items. WesCEF’s earnings surged 18.5% to AUD 473 million, driven by a AUD 40 million profit from lithium operations. Industrial and Safety earnings, excluding Coregas, rose 16.9% to AUD 76 million.
Officeworks posted a 3.7% sales increase but saw earnings fall 22.2% to AUD 165 million, impacted by AUD 40 million in restructuring and ERP transformation costs. Wesfarmers Health’s earnings, excluding purchase price accounting, grew 12.2% to AUD 92 million, with Priceline Pharmacy network sales up 12.7%. Group divisional earnings rose 6.2%, offsetting a AUD 170 million loss in other businesses and corporate overheads. Share of profit from associates and joint ventures increased by AUD 42 million to AUD 106 million.
Net financial debt rose to AUD 5.3 billion, while FY 2027 net capital expenditure guidance was set between AUD 1.3 billion and AUD 1.5 billion. Total investment in digital initiatives, including AI and retail media, reached AUD 73 million. Group total recordable injury frequency rate improved to 9.1 from 9.5, with WesCEF achieving a record 0.6.
Management highlighted ongoing uncertainty in inflation, interest rates, and housing markets as key risks to consumer sentiment. Bunnings noted continued strength in home improvement activity, while Kmart emphasized the growing importance of value for customers.
