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Reuters
Published
Aug 24, 2016
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Wesfarmers full year profit falls 83% on impairment charges

By
Reuters
Published
Aug 24, 2016

Retail and resources conglomerate Wesfarmers Ltd, Australia's No.1 company by sales, has recorded its worst net profit in 15 years due to impairment charges to cover an overhaul of discount department stores and lower coal prices.


Wesfarmers operates Kmart, Target and Coles in Australia


Net profit for the owner of the Kmart and Target store chains, as well as Australian supermarket operator Coles, slid 83 percent to A$407 million ($309.85 million) in 2015-16, down from A$2.44 billion a year ago. The result missed an average forecast of A$1.2 billion from eight analysts polled by Thomson Reuters I/B/E/S.

Wesfarmers, Australia's 9th-biggest company by market value, had not given earnings guidance. But in May it flagged impairment charges totaling as much as A$2.2 billion against its coal business and stores it is overhauling in the face of competition from European fast-fashion chains.


 

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