Wesfarmers Ltd reports 2.8% hike in profits in FY2010
Australia's second largest retail holdings firm Wesfarmers Ltd.reported a net profit after tax of $1,565 million for the full-year ended 30 June 2010. This was an increase of 2.8 percent compared to last year.
In a limited shareholders review submitted to the Australian and Singapore stock exchanges, Wesfarmers, which has headquarters in Perth, credited this growth on the turnaround of its retail businesses led by Coles, Home Improvement, Target, Kmart, and Officeworks chain.
According to Wesfarmers chairman Bob Every, the management strategies implemented in these retail chains made significant and favourable shift in sales. He noted that Home Improvement and Office Supplies both delivered robust growth across all business channels. Bunnings opened 22 new stores and trade centres. While, Officeworks opened five new stores.
"Kmart, for instance, relaunched its offer during the year, moving to a low price everyday strategy. Good progress has been made to date, with strong customer response reflected in pleasing transaction growth and improved earnings from category managemen," Every said in the report.
He added that though company is amidst challenging times, he is confident about the future of the company. He said shareholders, officers, and staff will be maintaining the momentum that Wesfarmers has built up in the retail space and leverage off a turnaround in the demand for its resources business.
The company reported that its division Resources announced a $286-million expansion ofthe Curragh mine to 8.0 - 8.5 million tonnes annual export capacity and the early completion of the Blackwater Creek diversion project. The merger of chemicals and fertilisers group with the energy division now known as Wesfarmers Chemicals, Energy benefited from a return to full gas supply for the year.
Wesfarmers dropped by -0.200 percent to A$33.71 at 1:35 p.m. in Sydney while the benchmark S&P/ASX 200 index edged up by 2.5 percent.