Bunnings Clocks $1.2bn Earnings Driven By Pandemic Home DIY
Home improvement chain Bunnings posted bumper sales for the half-year, with $1 billion clocked in before-tax earnings.
The Wesfarmers-owned store saw revenue increase by 24.4 per cent to $9.054 million, with earnings increasing by 35.8 per cent to $1.274 billion.
Bunnings was the standout retailer of the group, with the hardware store the best performing division by a country mile.
The strong results were driven by a boom in home DIY sales as customers stayed at home during the pandemic lockdown.
“The strength of the sales and earnings reflected Bunnings’ solid execution of the strategic agenda and the ability of the operation model to successfully adapt to changing customer behaviour and environments,” Wesfarmers managing director Rob Scott said.
“Bunnings continued to invest in the customers experience through its commitment to lowest prices, expansion of online product ranges and upgrades to in-store product displays across kitchen and garage organisation ranges. Travel restrictions and customers spending more time undertaking projects at home continued to support sales growth.”
In its outlook for the rest of 2021, the group expects a downturn in sales after the pandemic growth slows.
“Retail sales growth is expected to moderate from March as the as the businesses begin to cycle the initial impacts of COVID-19 in the prior year, particularly in Bunnings and Officeworks,” the report reads.
Net profit for the entire Wesfarmers group rose by 25.5 per cent to $1.4 billion.