Ann: 2023 Half-year Report incorporating Appendix 4D, page-32

Wesfarmers (ASX: WES) $49.35

WES +1.33% : A solid result today from Wesfarmers with revenue up 27% Y/Y to $22.6bn which was above consensus of $20.5bn, driving a ~9% beat to earnings before tax (EBT) while they declared a 1H23 dividend of 88cps. The result was driven by Kmart as consumers traded down, while their Chemical, Energy & Fertilizer business was also strong. Bunnings produced $1.3bn EBT – up 1.5% and inline with expectations while Catch & Office Works were light on. They said retail trade for the 1st 5wks was broadly in-line with 1H23 growth, which is a good outcome. No guidance was provided which is customary for WES, however, the market is expecting FY23 revenue of $40.42bn and FY EBT of $3.76bn. Given they produced $2.1bn in 1H23, there is some slight deterioration already priced in by the market.