Bunnings Reports Full-Year Growth Of 13.9%

Wesfarmers has reported on full-year trading, covering the year to 30th June 2020.

The parent company of Bunnings is one of Australia's largest listed companies and has with diverse business operations, including retail home improvement and outdoor living; apparel and general merchandise; office supplies; and an Industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products. 

Highlights

• The group reported revenue growth of 10.5% to $30,846m, reflecting strong sales growth in Bunnings, Kmart, Officeworks and Catch
  
  
• NPAT excluding significant items (pre AASB 16) up 8.2% to $2,099m
  
  
• Reported NPAT in prior year includes $3,570m from significant items and discontinued operations, primarily relating to the Coles demerger

• Final dividend of $0.77 per share; full year dividends of $1.52 per share

• Special Coles selldown dividend of $0.18 per share reflecting after tax profits realised from sale of the 10.1% interest
  
  
• Strong sales growth in Bunnings and Officeworks due to increased demand for products as customers spent more time working, learning and doing projects at home

• Kmart delivered strong sales growth despite volatile trading conditions 

• Strong growth in online sales of 60%3 for the year to $1.5b, or $2.1b including Catch, reflecting continued shifts in customer shopping preferences and enhanced digital offers

Bunnings reported a 13.9% rise in revenue with sales of £14,999m, compared with $13,162 in 2019, due to increased demand for products - particularly in the second half - as customers spent more time working, learning and doing projects at home. Wesfarmers said that Bunnings provided a convenient offer for consumer and trade customers while operating safely in a COVID-19 environment.

This segment now makes up 48.8% of Wesfarmers' revenues from contracts with customers.

Wesfarmers maintains that the outlook at Bunnings remains highly uncertain and trading performance is likely to moderate as extraordinary growth in the second half likely to have pulled sales forward from FY21 in some categories. 

Weaker economic conditions expected in Australia and New Zealand with gradual removal of financial support measures from government, banks and landlords likely to impact housing and renovation activity

Bunnings will continue to invest in additional cleaning, security and PPE in response to COVID-19 and there will be continued investment in the store portfolio, with 16 stores currently under construction. 

Wesfarmers confirmed a dividend of 77 cents per share.

Presentation -  Download the full 2020 results presentation here to learn more about the Group's performance and strategic progress.

Video - Watch Rob Scott, Wesfarmers CEO, talk about the results here 

Source : Insight DIY Team

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