Wesfarmers flags $1.7 billion gain from Coles spinoff

Company News

by Anna Napoli

Wesfarmers (ASX:WES) expects to report a gain of between $2.1 to $2.3 billion in its first half earnings on account of the demerger of the Coles supermarket division.

The Australian conglomerate spun off Coles in November, Australia’s second-biggest grocery chain, after deciding to reposition the Group's portfolio.

Wesfarmers also expects to post a pre-tax gain of A$670 million to A$680 million on disposal of its stake in the Bengalla coal mine.

The company says its balance sheet is now in a strong position, with net financial debt reducing from $3.6 billion at the end of the 2018 financial year, to an unaudited new debt position o) $0.3 billion at the end of 2018.

Shares in Wesfarmers (ASX:WES) closed 0.6 per cent lower at $31.95.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.