• Strong execution across the Group, with divisions improving customer propositions and delivering productivity initiatives
• Retail divisions benefited from households prioritising value, and new and expanded ranges and offerings
• Continued progress on key sustainability metrics, including safety and emissions reduction

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. During the half, cost of living and cost of doing business pressures continued to significantly impact many households and businesses. In this environment, the divisions remained focused on long-term shareholder value creation, investing in even greater value, service and convenience for customers. Proactive efficiency and digitisation initiatives helped mitigate higher costs, while enabling divisions to enhance the customer experience. The Group's largest divisions performed well, with Bunnings and Kmart Group's 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. Bunnings demonstrated the resilience of its offer, with strong consumer sales growth and continued sales growth in the commercial segment. Kmart Group's earnings growth was supported by the market-leading value and appeal of its Anko product ranges, and productivity initiatives undertaken in recent years, including the integration of Kmart and Target's systems and processes. Officeworks benefited from above-market growth in technology, as it continued to evolve its offer. WesCEF reported higher earnings, supported by favourable recontracting outcomes in Ammonium Nitrate. Good progress continued at the Kwinana lithium hydroxide refinery, with construction 95 per cent complete as at the end of the half. Wesfarmers Industrial and Safety's revenue and earnings declined, impacted by a softer market environment and restructuring costs to simplify the operating model in Blackwoods and Workwear Group. Wesfarmers Health continued to invest in transformation activities, and the focus remains on opportunities to accelerate growth and improve returns. The earnings growth in the Consumer segment, which includes Priceline, MediAesthetics and Digital Health, was offset by the Pharmaceutical Wholesale segment, which faced higher supply chain costs. Wesfarmers recognises the alignment between long-term shareholder value and sustainability performance, and good progress was made during the half on key metrics, including safety and emissions reduction.

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. Geopolitical developments will continue to present uncertainties to Australia's economic outlook and market conditions in the 2025 calendar year. The retail divisions are expected to continue to benefiting from their strong value credentials and by expanding their addressable markets. Domestic cost pressures are likely to persist, driven by labour, energy and supply chain costs, and weakness in the Australian dollar. To mitigate these impacts, the divisions will continue executing productivity initiatives, including investments in technology to digitise operations. Wesfarmers Health is well positioned to improve earnings and returns by executing its transformation program and capitalising on long-term sector tailwinds.