Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Wesfarmers (ASX:WES) share price rises after impressive FY23 report, bigger dividend

The Wesfarmers Ltd (ASX: WES) share price is up more than 2% after reporting its FY23 report.

Wesfarmers owns a number of businesses like Officeworks, Catch, Kmart, Target, Bunnings and Priceline.

Wesfarmers share price

FY23 result

  • Total revenue increased 18.2% to $43.5 billion
  • EBIT (EBIT explained) increased 6.3% to $3.86 billion
  • Net profit after tax (NPAT) went up 4.8% to $4.6 billion
  • Final dividend of $1.03 per share, up 3%
  • Full year dividend increased 6.1% to $1.91 per share

Let’s look at the three most important divisions.

Bunnings revenue rose 4.4% to $1.8 billion and earnings went up 1.2% to $2.23 billion. Kmart Group (which includes Target) saw revenue grow 16.5% to $10.6 billion and earnings increased 52.3% to $769 million. The Wesfarmers chemicals, energy and fertilisers (WesCEF) business experienced an 8.7% revenue increase to $3.3 billion, while earnings went up 23.9% to $669 million.

However, revenue and earnings growth was slower for all three of the big divisions in the second half of FY23.

For FY23, the healthcare division made $5.3 billion of revenue and $45 million of earnings. Wesfarmers is rapidly scaling this division with acquisitions.

Outlook for the Wesfarmers share price

The lithium business is expected to start production and sale of spodumene (raw lithium) during FY24. However, the rest of the WesCEF business is expected to see a significant earnings decline because of lower ammonia prices and higher (gas) costs.

Overall, Wesfarmers is hoping to adjust its costs in line with trading conditions.

In the first seven weeks of FY24, Kmart sales have continued to show strong growth, though the growth rate is moderating. Wesfarmers implied that Bunnings’ sales growth has been in the low single digits, while Officeworks sales were flat.

The business is expecting to invest in existing operations and in the development of platforms for long-term growth. It’s expecting net capital expenditure of between $1.1 billion to $1.4 billion.

Final thoughts on the Wesfarmers share price

I believe Wesfarmers is one of the strongest businesses on the ASX. I’m impressed that Kmart and Bunnings have managed to continue growing revenue and earnings.

It’s quite possible that the next 12 months could show a decline of revenue and earnings for the business, particularly if the retail environment considerably worsens. But, Kmart and Bunnings may be able to grow market share, and the lithium earnings should help in the coming years.

I’d be happy to buy it today for the long-term, I think this result has underlined how powerful some of its businesses are. It’s also one of the leading ASX dividend shares, in my eyes.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content