Wesfarmers Limited · ASX:WES
Wesfarmers — Wesfarmers Ltd Old — H1 2025 Earnings Presentation
66 slides from Wesfarmers's earnings presentation, Feb 20, 2025
Slide 1: 2025 Half-Year Results Briefing Presentation
2025 HALF-YEAR al use only RESULTS BRIEFING PRESENTATION To be held on 20 February 2025
Slide 2: Presentation outline
Presentation outline Item Presenter Slide Group performance overview Rob Scott – Managing Director, Wesfarmers Limited 3 Financial performance Anthony Gianotti – Chief Financial Officer, Wesfarmers Limited 10 al use only Outlook Rob Scott – Managing Director, Wesfarmers Limited 18 Q&A Rob Scott – Ma
Slide 3: Group Performance Overview
al use only GROUP PERFORMANCE OVERVIEW ROB SCOTT Managing Director Wesfarmers Limited
Slide 4: Wesfarmers Way
Wesfarmers Way Wesfarmers’ primary objective Anticipating the needs of our Looking after our team is to deliver a satisfactory customers and delivering members and providing a safe, competitive goods and services fulfilling work environment al use only return to shareholders. We believe it is only p
Slide 5: 2025 Half-year highlights
2025 Half-year Maintained focus on highlights driving shareholder returns over the long term Revenue NPAT up 3.6% to up 2.9% to al use only Results highlight strong Investing to strengthen execution across the $23.5b $1.5b Group’s businesses businesses and advance growth projects • Invested in even
Slide 6: Divisional highlights
Divisional highlights al use only BUNNINGS GROUP KMART GROUP WESCEF OFFICEWORKS • Performance highlights the • Strong value credentials and unique • Solid operating performance • Continued investment in everyday resilience of the Bunnings offer Anko product ranges resonated with • Continued to ramp
Slide 7: Recent portfolio actions reflect the focus on shareholder returns
Recent portfolio actions reflect the focus on shareholder returns al use only Sale of Coregas Catch wind down and transition Sale for $770m delivers value for shareholders Eliminates the losses associated with Catch Expected to complete mid-CY251 Transfer of FCs2 to strengthen Kmart Group’s online o
Slide 8: Focus on long-term value
Focus on PEOPLE 1H25 long-term value, consistent with 9.9 total recordable injury our objective frequency rate (TRIFR) and a continued focus on safety al use only 3.9% Indigenous employment2, maintaining employment parity CLIMATE AND COMMUNITIES AND ENVIRONMENT SUPPLIERS 1H25 43% 1H25 women in Board
Slide 9: Group performance summary
Group performance summary Half-year ended 31 December ($m)1 2024 2023 Var % Revenue 23,490 22,673 3.6 al use only EBIT 2,299 2,195 4.7 EBIT (after interest on lease liabilities) 2,176 2,081 4.6 NPAT 1,467 1,425 2.9 Basic earnings per share (cps) 129.4 125.8 2.9 Return on equity (R12,%) 31.2 31.4 (0.
Slide 10: Financial Performance
al use only FINANCIAL PERFORMANCE ANTHONY GIANOTTI Chief Financial Officer Wesfarmers Limited
Slide 11: Divisional sales performance
Divisional sales performance Total sales Comp. sales Half-year ended 31 December ($m)1 2024 2023 growth (%) growth (%) • Bunnings and Kmart Group’s everyday low prices, Bunnings Group 10,263 9,951 3.1% 3.4% market-leading offers and strong execution al use only supported transaction and sales growth
Slide 12: Divisional earnings performance
Divisional earnings performance Earnings $m ROC % Var Half-year ended 31 December1 2024 2023 Var % 2024 (ppt)2 Performance summary Bunnings Group 1,322 1,282 3.1 71.5 5.7 • Strong consumer sales growth and continued growth in commercial al use only Excl. net property contribution 1,323 1,282 3.2 • I
Slide 13: Other business performance summary
Other business performance summary Half-year ended 31 December1 ($m) Holding % 2024 2023 Var % Share of profit of associates and JVs Other EBT result includes: BWP Trust 22.32 35 13 169.2 • Favourable property revaluations in BWP Trust al use only • Lower Group insurance result in Other Other associ
Slide 14: Working capital and cash flow
Working capital and cash flow • Divisional cash realisation remained strong at 108% 1, and was 113%1 for the NET WORKING CAPITAL CASH MOVEMENT retail divisions Half-year end 31 December ($m) 2024 2023 al use only • Divisional operating cash flows decreased 6.3% Receivables and prepayments 165 121 –
Slide 15: Capital expenditure
Capital expenditure • Gross capital expenditure increased 2.9% to $594m CAPITAL EXPENDITURE – Higher spend on new store and expansion projects in Bunnings, partially Half-year end 31 December1 ($m) 2024 2023 Var % al use only offset by reduced capex in WesCEF, following the completion of Bunnings Gr
Slide 16: Balance sheet and debt management
Balance sheet and debt management • Continued focus on optimising cost of funds and debt maturity profile DEBT MATURITY PROFILE1 – Weighted average cost of debt of 3.92% for the half (FY24: 3.87%, $m 2,000 1H24: 3.83%) al use only 1,500 – Weighted average debt term to maturity of 4.6 years (1H24: 4.
Slide 17: Shareholder distributions
Shareholder distributions SHAREHOLDER DISTRIBUTIONS1 • Fully-franked ordinary interim dividend of $0.95 per share $/share al use only • Dividend record date 26 February 2025; dividend payable 1 April 2025 • Dividend investment plan: not underwritten; last day for application 5.00 27 February 2025 –
Slide 18: Outlook
al use only OUTLOOK ROB SCOTT Managing Director Wesfarmers Limited
Slide 19: Well positioned to deliver long-term shareholder returns
Well positioned to deliver long-term shareholder returns $ 3.50 al use only Portfolio of high Attractive long-term Optionality to deploy and quality businesses growth opportunities reallocate capital • Retailers with strong value • Opportunities to grow and • Strong balance sheet with credentials an
Slide 20: Group outlook
Group outlook • Wesfarmers remains focused • The Group’s retail businesses • The performance of the Group’s • Domestic cost pressures likely to on long-term value creation are expected to benefit from their industrial businesses remains persist with higher labour, energy, and continues to invest to
Slide 21: Q&A
al use only Q&A
Slide 22: Appendix: Divisional Summaries
al use only APPENDIX: DIVISIONAL SUMMARIES Wesfarmers 2025 Half-year results | 22
Slide 23: Bunnings Group
al use only BUNNINGS GROUP MICHAEL SCHNEIDER Managing Director Bunnings Group
Slide 24: Bunnings Group performance summary
Bunnings Group performance summary Half-year ended 31 December1 ($m) 2024 2023 Variance % Revenue 10,280 9,963 3.2 al use only EBITDA 1,799 1,748 2.9 Depreciation and amortisation (411) (408) (0.7) EBIT 1,388 1,340 3.6 Interest on lease liabilities (66) (58) (13.8) EBT 1,322 1,282 3.1 Net property c
Slide 25: Bunnings Group performance overview
Bunnings Group performance overview • Revenue growth of 3.2% to $10,280m ‒ Total store sales increased 3.5% and store-on-store sales growth of 3.4% al use only ‒ Growth across both consumer and commercial segments ‒ Delivering the best customer offer – increase in transaction volumes and units sold
Slide 26: Bunnings Group progress on strategy
Bunnings Group progress on strategy Care • Material improvement in safety performance • New rostering system driving productivity, flexibility and better customer experience al use only • On track to deliver 100% renewable electricity commitment by end of CY25 • Substantial growth in community contr
Slide 27: Bunnings Group outlook
Bunnings Group outlook • Bunnings continues to maintain its long-term focus on sustainable earnings growth, underpinned by its: al use only ‒ Resilient operating model – Lowest Prices, Widest Range, Best Experience ‒ Relentless attention to customer value ‒ Diverse customer base ‒ Focus on simplicit
Slide 28: Kmart Group
al use only KMART GROUP IAN BAILEY Managing Director Kmart Group
Slide 29: Kmart Group performance summary
Kmart Group performance summary Half-year ended 31 December1 ($m) 2024 2023 Variance % Revenue 6,108 5,986 2.0 al use only EBITDA 947 895 5.8 Depreciation and amortisation (262) (252) (4.0) EBIT 685 643 6.5 Interest on lease liabilities (41) (42) 2.4 EBT 644 601 7.2 EBT margin (%) 10.5 10.0 ROC (R12
Slide 30: Kmart Group performance overview
Kmart Group performance overview • Revenue increased by 2.0% to $6,108m – Kmart Group comparable sales grew by 1.9% – Kmart Group continues to benefit from its strong value credentials and the al use only uniqueness of the Anko products – Units sold, transaction volumes and customer numbers all incr
Slide 31: Kmart Group progress on strategy
Kmart Group progress on strategy • Kmart Group continued to invest in strategic initiatives, including the development of digital and data assets: – Ongoing digitisation of operations across stores, sourcing and supply chain to al use only deliver productivity benefits – Kmart and Target’s online pl
Slide 32: Kmart Group outlook
Kmart Group outlook • Kmart Group will continue to progress its strategic agenda: – Leveraging the strength of its world-class product development capabilities to maintain a competitive advantage al use only – Distribution of Anko products into new markets globally, including Anko stores in the Phil
Slide 33: WesCEF
al use only WESCEF AARON HOOD Managing Director Wesfarmers Chemicals, Energy & Fertilisers
Slide 34: Chemicals, Energy and Fertilisers performance summary
Chemicals, Energy and Fertilisers performance summary Half-year ended 31 December1 ($m) 2024 2023 Variance % Revenue2 Chemicals3 704 628 12.1 al use only Energy4 260 262 (0.8) Fertilisers 246 215 14.4 Total 1,210 1,105 9.5 EBITDA 255 229 11.4 Depreciation and amortisation5 (77) (56) (37.5) EBIT 178
Slide 35: Chemicals, Energy and Fertilisers performance overview
Chemicals, Energy and Fertilisers performance overview • Revenue of $1,210m increased 9.5%, largely due to spodumene • Fertilisers: Earnings improved, supported by higher sales volumes concentrate sales al use only • Lithium: Includes WesCEF’s 50% interest in the Covalent lithium project • Earnings
Slide 36: Chemicals, Energy and Fertilisers key commodity pricing
Chemicals, Energy and Fertilisers key commodity pricing Ammonia price – CFR Far East1 Ammonia pricing US$/t 1,200 • Ammonia earnings in 1H25 were broadly in line with 1H24, due to: 1HFY23 1HFY24 1HFY25 1,000 al use only – Lower average global ammonia pricing; offset by 800 – The cycling of the unfav
Slide 37: Chemicals, Energy and Fertilisers outlook
Chemicals, Energy and Fertilisers outlook • Chemicals earnings will continue to depend on • In Lithium: • WesCEF continues to progress its key strategic global ammonia pricing focus areas: – First product at the refinery is expected in – Earnings in 2H25 are not expected to be mid-CY251 – Work on th
Slide 38: Officeworks
al use only OFFICEWORKS SARAH HUNTER Managing Director Officeworks
Slide 39: Officeworks performance summary
Officeworks performance summary Half-year ended 31 December1 ($m) 2024 2023 Variance % Revenue 1,760 1,681 4.7 al use only EBITDA 166 161 3.1 Depreciation and amortisation (70) (67) (4.5) EBIT 96 94 2.1 Interest on lease liabilities (9) (8) (12.5) EBT 87 86 1.2 EBT margin (%) 4.9 5.1 ROC (R12, %) 18
Slide 40: Officeworks performance overview
Officeworks performance overview • Revenue growth of 4.7% to $1,760m – Sales growth supported by above-market growth in technology and an increase in demand across key categories al use only – Pleasing sales growth to consumer customers, including during the Black Friday trading period – Softer sale
Slide 41: Officeworks progress on strategy
Officeworks progress on strategy Evolving Officeworks’ offer to meet changing customer needs • Expanded new categories such as Next Gen AI computing, accessories and al use only digital displays and services such as ‘Same-Day Print’ • Leading every-channel offer continued to drive strong online sale
Slide 42: Officeworks outlook
Officeworks outlook • Officeworks’ commitment to everyday low prices, widest range and best experience across all channels make it well positioned to support value- conscious consumers and business customers al use only • Back to School performance has been solid, with customers seeking value and st
Slide 43: Industrial & Safety
al use only INDUSTRIAL & SAFETY TIM BULT Managing Director Wesfarmers Industrial & Safety
Slide 44: Industrial and Safety performance summary
Industrial and Safety performance summary Half-year ended 31 December1 ($m) 2024 2023 Variance % Revenue 990 1,009 (1.9) al use only EBITDA 88 92 (4.3) Depreciation and amortisation (41) (41) - EBIT2 47 51 (7.8) Interest on lease liabilities (2) (2) - EBT2 45 49 (8.2) EBT (excluding restructuring co
Slide 45: Industrial and Safety performance overview
Industrial and Safety performance overview • Trading conditions were challenging in 1H25 – Reduced customer demand in Blackwoods and Workwear Group al use only • Result includes $7m in restructuring costs across Blackwoods and Workwear Group – Restructuring costs reflect actions taken to reset the o
Slide 46: Industrial and Safety outlook
Industrial and Safety outlook • Trading conditions are expected to continue to be challenging in 2H25 – Customer demand will remain dependent on economic conditions, business confidence al use only and investment, and commodity prices – The Industrial and Safety businesses will continue to actively
Slide 47: Wesfarmers Health
al use only WESFARMERS HEALTH EMILY AMOS Managing Director Wesfarmers Health
Slide 48: Health performance summary
Health performance summary Half-year ended 31 December1 ($m) 2024 2023 Variance % Revenue 3,022 2,774 8.9 al use only EBITDA 68 66 3.0 Depreciation and amortisation2 (37) (37) - EBIT2 31 29 6.9 Interest on lease liabilities (3) (2) (50.0) EBT2 28 27 3.7 EBT (excluding restructuring costs and PPA3 ad
Slide 49: Health performance overview
Health performance overview • Revenue increased 8.9% and earnings increased 3.7% – Result includes $4m in restructuring costs, reflecting actions to lower costs and enhance al use only capabilities in the support office – Excluding restructuring costs and PPA adjustments, earnings increased 13.9% •
Slide 50: Health progress on strategy
Health progress on strategy al use only Consumer Pharmaceutical Wholesale Leading health, beauty and wellness offering Pharmaceutical wholesaler of choice Retail • Expanded network, with a focus on securing high-quality sites • Actions taken to mitigate higher supply chain costs • Launched refreshed
Slide 51: Health outlook
Health outlook • Wesfarmers Health is well positioned to improve earnings and returns by executing its transformation program and capitalising on long-term sector tailwinds al use only • The focus is on accelerating earnings in the growing, higher-margin and less capital-intensive Consumer segment,
Slide 52: OneDigital
al use only ONEDIGITAL NICOLE SHEFFIELD Managing Director Wesfarmers OneDigital
Slide 53: Significant data and digital capabilities across the Group
Significant data and digital capabilities across the Group Driving value through Large scale digital reach Unique and complementary deeper customer connections and across the retail divisions member programs operating efficiency al use only Sales to known customer Rising penetration of OnePass 65%+
Slide 54: Group data and digital progress review and outlook
Group data and digital progress review and outlook • OneDigital played an increasingly important role driving incremental sales for the retail and health divisions, supported by the OnePass program and Group shared data asset • OnePass membership numbers and retention rates increased on the prior co
Slide 55: Catch performance summary
Catch performance summary • GTV declined 18.6% driven by lower customer traffic, increased competitive Half-year ended 31 December1,2 ($m) 2024 2023 Var % intensity and the exit of unprofitable lines in the in-stock business Gross transaction value 258 317 (18.6) • Loss of $39m is in line with the p
Slide 56: Appendix: Supplementary Information
al use only APPENDIX: SUPPLEMENTARY INFORMATION Wesfarmers 2025 Half-year results | 56
Slide 57: Divisional return on capital
Divisional return on capital 2024 2023 Cap Emp1 Cap Emp1 al use only Rolling 12 months to 31 December EBT ($m) ROC (%) EBT ($m) ROC (%) Var (ppt) ($m) ($m) Bunnings Group 2,291 3,203 71.5 2,234 3,394 65.8 5.7 Kmart Group 1,001 1,519 65.9 895 1,523 58.8 7.1 WesCEF2 445 3,472 12.8 517 3,197 16.2 (3.4)
Slide 58: Group management balance sheet
Group management balance sheet ($m)1,2 1H25 FY24 1H24 Inventories 6,548 6,102 6,176 al use only Receivables and prepayments 2,299 2,459 2,187 Trade and other payables (5,951) (5,377) (5,805) Other 243 351 369 Net working capital 3,139 3,535 2,927 Property, plant and equipment 5,748 5,653 5,578 Intan
Slide 59: Movements in net financial debt
Movements in net financial debt Movements in net financial debt ($b) 4.3 al use only (0.2) 3.9 0.6 (2.6) 1.2 0.6 Net financial debt Operating cash flows Lease payments Dividends paid Net capex Other Net financial debt 30 June 2024 31 December 2024 • Net financial debt position of $3.9b as at 31 Dece
Slide 60: Management of lease portfolio
Management of lease portfolio • Lease liabilities totalled $6.6b and represented 61% of the Group’s fixed Lease liabilities ($m) 1H25 FY24 1H24 financial obligations as at 31 December 2024 Bunnings Group 3,555 3,402 3,610 • Average remaining committed lease term of 3.9 years al use only (FY24: 4.0 y
Slide 61: Revenue reconciliation – Kmart Group
Revenue reconciliation – Kmart Group Half-year ended 31 December1 ($m) 2024 2023 al use only Segment revenue (Gregorian) 6,108 5,986 Less: Non-sales revenue (31) (32) Headline sales (Gregorian) 6,077 5,954 Add: Gregorian adjustment2 130 129 Headline sales revenue (Retail) 6,207 6,083 1. Refer to sli
Slide 62: Retail store networks
Retail store networks As at 31 December 2024 1,914 locations across Australia and New Zealand Brand NSW/ACT VIC QLD SA WA TAS NT NZ Total Bunnings Group Warehouse 81 64 52 19 29 7 3 31 286 al use only Smaller format 19 14 11 2 9 - - 10 65 Trade 7 2 6 2 3 1 - 9 30 Tool Kit Depot 1 1 1 5 7 1 - - 16 Be
Slide 63: Retail calendars
Retail calendars Business Retail sales period Bunnings, Officeworks and Catch al use only Half-year 2025 1 Jul 2024 to 31 Dec 2024 (6 months) Half-year 2024 1 Jul 2023 to 31 Dec 2023 (6 months) Half-year 2023 1 Jul 2022 to 31 Dec 2022 (6 months) Kmart Half-year 2025 1 Jul 2024 to 5 Jan 2025 (27 week
Slide 64: Glossary of terms (1 of 2)
Glossary of terms (1 of 2) Term AASB Australian Accounting Standards Board Australian Light Minerals. ALM is the company holding WesCEF’s 50 per cent share in the Covalent lithium project and is responsible for the sales ALM al use only and marketing of lithium products as well as undertaking explor
Slide 65: Glossary of terms (2 of 2)
Glossary of terms (2 of 2) Term ktpa Kilotonnes per annum ktCO2e Kilotonnes of carbon dioxide equivalent al use only LNG Liquefied natural gas LPG Liquefied petroleum gas m Million mw megawatt n.m. Not meaningful Interest-bearing loans and borrowings less cash at bank and on deposit and held in join
Slide 66: al use only
A Wesfarmers Ajuo asn ye