Wesfarmers profit soars after Coles demerger

Company News

by Rachael Jones

Retail and industrial company Wesfarmers (ASX:WES) has reported a net profit after tax of $4.54 billion for the half-year ended 31 December 2018, up from $212 million in the year-earlier period.

Profit from continuing operations increased by 10.4 per cent to $1.08 billion.

This record profit includes post-tax significant items of $3 billion relating to discontinued operations, including gains on the demerger of Coles and disposals of Bengalla, Kmart Tyre and Auto Service, and Quadrant Energy which were completed during the half-year.

Earnings before interest and tax from continuing operations rose 9.5 per cent to $1.64 billion, slightly beating Citi's consensus of about $1.5 billion.

The company said it will pay an interim dividend of $1 a share, down slightly from $1.03 a year ago and a $1 special dividend. 

Shares in Wesfarmers (ASX:WES) are trading 5.68 per cent higher to $34.58. 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.