• Statutory NPAT of $1,467 million, up 2.9%
• Retail divisions performed well, benefiting from strong customer demand
• Ongoing focus on productivity initiatives and digitisation to mitigate cost pressures

Wesfarmers Limited has reported a statutory net profit after tax (NPAT) of $1,467 million for the half-year ended 31 December 2024, an increase of 2.9 per cent. The increase in profit in a challenging environment highlights the strong execution across the Group, with the divisions improving their customer propositions and delivering productivity initiatives that drove growth and efficiency. The Group's largest divisions, Bunnings and Kmart Group, performed well, with their everyday low prices, market-leading offers and strong execution driving growth in transactions, sales and earnings. The retail divisions benefited from households prioritising value, and from new and expanded ranges and offerings that helped grow their addressable markets. WesCEF reported higher earnings, supported by favourable recontracting outcomes in Ammonium Nitrate, while Wesfarmers Industrial and Safety's revenue and earnings declined, impacted by a softer market environment and restructuring costs. Wesfarmers Health continued to invest in transformation activities, with earnings growth in the Consumer segment offset by the Pharmaceutical Wholesale segment. The Group remains focused on long-term value creation and continues to invest to strengthen its existing divisions and develop platforms for growth, including through recent portfolio actions such as the sale of Coregas and the decision to wind down Catch.

The Group expects net capital expenditure of between $1,100 million and $1,300 million for the 2025 financial year, subject to net property investment and the timing of project expenditures.

Australian consumer demand remains supported by low unemployment and continued population growth, but higher costs remain a challenge for many households and businesses. Cost of living and cost of doing business pressures are expected to continue, despite the recent easing of interest rates. The retail divisions are expected to continue to benefit from their strong value credentials and by expanding their addressable markets, while executing productivity initiatives to mitigate domestic cost pressures. Wesfarmers and its joint venture partner remain focused on the development of the Covalent lithium project, with first product expected in mid-calendar year 2025.