Bunnings Reports “Extraordinary Growth” For FY21
Despite all the jokes about people visiting Bunnings during a period in which they should be in lockdown, it appears there is some truth to it all, as Bunnings post revenue of $16,871 million for the 2021 financial year, an increase of 12.5 per cent.
Earnings increased 19.7 per cent to $2,185 million; excluding the net contribution from property, they increased even further, with a 21.3 per cent jump.
Total store sales increased 12.4 per cent for the year, with store-on-store sales increasing 11.9 per cent. Not surprisingly, given Bunnings’ stricter-than-most click and collect policies, digital sales only made up 2.3 per cent of total business, which was still an increase.
Due to COVID-19, $27 million in costs went to “additional cleaning, security and protective equipment” as the business navigated the pandemic.
“Bunnings’ strong sales and earnings growth reflects the execution of its strategic agenda and the increased value and relevance of its offer for consumer and commercial customers,” Wesfarmers explained.
“During the year, Bunnings refreshed thousands of products, introduced new showroom experiences, delivered a new retail website and continued to invest in enhancements to its digital offer. Bunnings also deepened its relationships with trade customers through a new trade service desk format and enhancements to the PowerPass app.
“Return on capital increased to 82.4 per cent as a result of strong earnings growth, disciplined capital management and a temporary benefit from lower average inventory balances due to strong customer demand.”
Bunnings opened 16 new stores and closed 10, with a total of 278 warehouses, 70 smaller format stores and 30 trade centres in the Bunnings network, plus five Adelaide Tools stores. In addition, six warehouses, three smaller stores and two trade centres are due to be completed by the end of the year.