Stock of the day: Wesfarmers
Wesfarmers posted a 3.7% profit increase to $2.56 billion, driven by Bunnings and Kmart. However, analysts suggest caution due to high valuation and a softer sales outlook for FY25.
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This video was created on 29 August for IG audiences by ausbiz.
Stock of the day: (ASX:WES)
Wesfarmers profit rise and outlook
Wesfarmers, the Australian retail conglomerate, reported a 3.7% increase in annual profit, primarily driven by strong performances from Bunnings and Kmart. The company's net profit after tax for the full year reached $2.56 billion, up from $2.47 billion the previous year, meeting market expectations.
Shareholders will receive a final dividend of $1.07 per share, higher than last year's payout. However, early signs for FY25 indicate a slowdown in sales growth at Bunnings, largely due to a dip in building activity.
Market sentiment
Wesfarmers remains a strong company, but its high valuation and moderate growth outlook suggest that significant short-term gains may be limited. Analysts suggest that investors approach with caution.
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