Consensus community valuation
$36.88
Average Intrinsic Value
19.8%
Overvalued by
Active Member Straws
#Business Update
Added a month ago

09-June-2020:  Retail trading update

Overview:  Total sales growth by division from H2 to date:  Bunnings up 19.2%, Kmart up 4.1%, Target down 1.8%, Catch (GTV) up 68.7%, Officeworks up 27.8%.  In the calendar year to date, the group's retail businesses delivered total online sales growth of 89%.  Financial year to date total online sales across the group increased 60% to $1.9bn including Catch.

Disclosure:  I hold WES shares.

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#Business Update
Last edited 2 months ago

22-May-2020:  Kmart Group update and expected FY20 significant items

Kmart Group update

  • First phase of Target review has identified actions to accelerate the growth of Kmart and address the unsustainable financial performance of Target
  • Actions include the conversion of suitable Target stores to Kmart stores, the closure of a number of Target stores and a restructuring of the Target store support office
  • Redeployment opportunities in Kmart and other Wesfarmers businesses will minimise the effect of these changes on Target team members

Significant items expected in the 2020 full-year results

  • Restructuring costs and provisions in Kmart Group of approximately $120 to $170 million before tax, primarily reflecting Target store closure costs, inventory write-offs and a restructure of the Target store support office  
  • Non-cash impairment in Kmart Group of approximately $430 to $480 million before tax, including an impairment of the Target brand name
  • Non-cash impairment in the Industrial and Safety division of approximately $300 million before tax, primarily relating to the impairment of goodwill
  • Pre-tax gain on sale of 10.1 per cent interest in Coles of $290 million, and one-off pre-tax gain of $221 million on the revaluation of the remaining Coles investment  
  • The estimates of the significant items remain subject to auditor review

[...click on link above for further details...]

Disclosure:  I hold WES shares.

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#Results
Added 5 months ago

Wednesday 19th Feb 2020:  The following have all been released by WES (Wesfarmers) to the ASX announcements platform today:

2020 Half-year Results

2020 Half-Year Report (including Appendix 4D)

2020 Half-year Results Briefing Presentation

Wesfarmers sells 4.9 per cent of Coles Group for $1.05 billion

Disclosure:  I hold WES shares.  I like the exposure to Bunnings, Officeworks, Wesfarmers' natural gas and agricultural chemicals/fertilisers businesses, as well as their new foray into battery metals miners and their plans to develop a battery metals supply chain business.

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#Business Model/Strategy
Added 5 months ago

A rare conglomerate with higher cash position.  Controls many brands and is diversified enough to weather any market. 

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#Company Presentations
Added 2 months ago

07-May-2020:  Macquarie Conference Briefing Presentation

That is a link to a copy of the presentation that is to be given today at the Macquarie Australia Conference today.  The presentation outlines Wesfarmers’ priorities and response to current market conditions.  It also includes an update on the Group’s trading performance in line with Wesfarmers’ announcement on 28 April 2020 and an update on the Group’s balance sheet position.  [28-Apr-2020:  COVID-19 update]

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#COVID-19 Updates
Added 3 months ago

28-Apr-2020:  COVID-19 update

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#Further COL selldown
Added 4 months ago

31-Mar-2020:  WES: Wesfarmers sells 5.2 per cent of Coles Group

Also:  COL: Sale by Wesfarmers of 5.2 per cent of Coles Group

Following the sale, Wesfarmers retains a 4.9 per cent interest in Coles and has agreed to retain its remaining shares in Coles for at least 60 days from today.

COL & WES also remain 50/50 JV partners in Flybuys and will continue to work together.

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