Wesfarmers reported a 14.4% rise in 2025 net profit driven by strong performances from Bunnings and Kmart

Wesfarmers reported a 14.4% increase in statutory net profit after tax to A$2.93 billion (US$1.93 billion) for the year ended 30 June 2025, supported by strong performances in its retail divisions despite ongoing cost pressures. Profit excluding significant items rose 3.8% to A$2.65 billion (US$1.75 billion), with group revenue up 3.4% to A$45.7 billion (US$30.2 billion).

Managing director Rob Scott said earnings growth reflected disciplined execution of productivity initiatives and resilient consumer demand. “Bunnings and Kmart Group continued to deliver value through everyday low prices and market-leading offers, while Officeworks grew sales and earnings by expanding its technology offer,” Scott said.

Bunnings’ earnings rose 3.8% to A$2.34 billion (US$1.55 billion), supported by steady consumer and commercial demand, while Kmart Group’s profit climbed 9.2% to A$1.05 billion (US$694 million). Wesfarmers Health lifted earnings 28% to A$64 million (US$42 million), driven by Priceline Pharmacy and digital health operations.

The chemicals, energy and fertilisers division saw earnings fall 9.3% to A$399 million (US$263 million) due to weaker ammonia and lithium results, though the group achieved first production at its Kwinana lithium hydroxide refinery in July 2025.

The board declared a fully franked final dividend of A$1.11 (US$0.73) per share, taking the full-year ordinary dividend to A$2.06 (US$1.36). In addition, it proposed a capital management distribution of A$1.50 (US$0.99) per share, comprising a A$1.10 (US$0.73) capital component and a A$0.40 (US$0.26) fully franked special dividend, subject to shareholder approval at the 30 October AGM.

Looking ahead, Wesfarmers said its retail divisions had maintained sales momentum in the first eight weeks of fiscal 2026, while domestic cost pressures remained a key challenge. The company expects net capital expenditure of A$1.0–1.3 billion (US$660–860 million) in FY26 and signaled higher near-term losses in its lithium business during the refinery ramp-up phase.