The Perth-based conglomerate announced total revenue of A$24.2 billion for the six months ending December, supported by a diverse portfolio that navigated shifting consumer habits. Shareholders are set to receive an interim dividend of A$1.02 per share, up from A$0.95 in the previous year. While the group’s core retail engines remained resilient, the chemicals, energy, and fertilizers segment emerged as a standout performer, posting an 18% jump in earnings largely attributed to the company's expanding lithium interests.

Performance across the group’s primary retail and industrial divisions was largely positive:

• Bunnings recorded a 5% increase in earnings.
• Kmart and Target's discount operations grew by approximately 6%.
• The chemicals, energy, and fertilizers unit saw an 18% earnings surge.

According to management, early trading in the second half suggests sustained momentum, with Kmart outperforming its first-half growth rates. However, the group cautioned that cost-of-living pressures are being felt unevenly across the economy. Analysts at Jefferies noted that while demand remains solid, household budgets are increasingly under strain, even as discount retailers like Kmart benefit from shoppers seeking value.

Industrial Headwinds and Strategic Shifts

The company’s foray into the battery metals market via the Covalent lithium joint venture faces technical hurdles. Despite a favorable pricing environment, Wesfarmers reported that odor issues at its refinery will delay the full production ramp-up until mid-2026. Management stated that engineering works are currently underway to address the emissions issues identified during commissioning.

One significant outlier in the results was Officeworks, which saw earnings plunge by approximately 22%. Wesfarmers attributed this decline to a major transformation program currently being implemented within the office supplies chain. Despite this, the broader outlook remains cautiously optimistic as the company navigates a volatile macroeconomic environment.