Wesfarmers will hand shareholders a healthy dividend after bargain hunters helped boost revenue at key retail assets Kmart and Bunnings.
The Perth-based company lifted its first-half profit almost three per cent to $1.47 billion, and declared an interim, fully-franked dividend of 95 cents, up from 91 cents last year.
"During the half, cost of living and cost of doing business pressures continued to significantly impact many households and businesses," managing director Rob Scott said.
"In this environment, the divisions remained focused on long-term shareholder value creation, investing in even greater value, service and convenience for customers."
Efficiency and digitisation measures had also supported the result, Mr Scott said.
Bunnings sales topped $10.2 billion for the half, while Kmart Group, which includes Target stores, grossed more than $6.2 billion in revenue.
Of Wesfarmers' retail arms, Officeworks posted the highest sales growth at 4.7 per cent, followed by Bunnings at 3.1 per cent and Kmart at 2.0 per cent.
The conglomerate's money-losing Catch.com.au, which will be wound up by the end of the financial year, recorded an 18.6 per cent drop in sales as it was overwhelmed by e-commerce giants Amazon and Temu.
"Catch's e-commerce fulfilment centres will be transferred to Kmart Group, while select digital capabilities developed in Catch will be transferred to Wesfarmers' retail divisions," Mr Scott said.
"The decision is in the best interests of shareholders, as it eliminates the losses associated with Catch and strengthens the retail divisions' omnichannel offers."
Wesfarmers Industrial and Safety was the other laggard with revenue and earnings falling 1.9 per cent to $990 million.
The group's chemicals, energy and fertilisers division, WesCEF, increased revenue 9.5 per cent to $1.2 billion compared to the same half a year ago, helped by 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," Mr Scott said.
The first six weeks of 2025 have been healthy for Wesfarmers' retail divisions, with sales growth at Bunnings and Officeworks in line with the first half of the financial year. Kmart Group sales growth was even stronger than in June, helped by its house brand Anko products.
WES shares were trading 2.6 per cent higher at $78.59 just before 11am on Thursday.
