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Coles powers Wesfarmers to strong result

It has been another strong half-year for Wesfarmers, which saw its net profit rise by 9.3 percent to $1.28 billion

February 14, 2013

It has been another strong half-year for Wesfarmers, which saw its net profit rise by 9.3 percent to $1.28 billion on the back of a strong performance from Coles.

Coles’ pre-tax earnings jumped 15.1 percent to $755 million – three times the rate of revenue growth – according Wesfarmers’ 2013 half-yearly results.

General goods retailer Kmart was also up on the list, reporting a rise of 24.9 percent in gross earnings to $246 million. Bunnings, meanwhile, recorded a 6.8 percent ($518 million) rise.

“We expect growth from the group’s retail businesses as we further improve customer offers and operating efficiencies, and strengthen all of our channels to market,” Wesfarmers Managing Director Richard Goyder says.

Target, however, suffered a 20.4 percent percent dip, while Wesfarmers’ resources division was also below the previous period by 62.8 percent.

It reported earnings of $93 million, as low export coal prices and the strong exchange rate made an impact. The insurance division was up by $87 million thanks to better underwriting performance.

Goyder says is pleased with Wesfarmers’ result given the challenging conditions experienced by the resources division. He says he is cautiously optimistic for the second half outlook despite market uncertainty.

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