The Chairman of Wesfarmers – the corporation behind major brands including Bunnings, Kmart, Target, Officeworks, Priceline and catch.com.au – has suggested politicians should show a little more love for all the company does for the Australian economy.

At the Wesfarmers AGM in Perth on Thursday Michael Chaney revealed the group had posted a record $2.6 billion net profit, up 3.7 percent.

Fully franked ordinary dividends rose 3.7 per cent, to $1.98 per share.

“There is, I believe, too little appreciation of the huge contribution large businesses like Wesfarmers make to the Australian economy,” he said.

Officeworks.

“It would be good to hear political leaders of all persuasions acknowledge their understanding of these facts – that large companies like ours constitute a vital part of the economy, generate enormous benefits to the community and make a huge contribution to society.”

Possibly referring to current government inquiries into alleged price gouging by major supermarkets, Chaney said that “for some external parties, profit seems to be a dirty word”.

“Companies have to be profitable in order to continue to operate … like employing people, sourcing products and services from suppliers, providing customers what they need …”

He said “the first $1 billion of Wesfarmers’ profit before tax in 2024, or 29 per cent, went to the federal government as income tax … the next 61 per cent, or $2.2 billion, went to our 490,000 shareholders – including individuals and superannuation funds”.

The final 10 per cent of the profit – about 1 per cent of original revenue – went to retained earnings.

Chaney described Kmart Group (Kmart and Target) as “the standout performer”, with a 25 per cent increase in profit.

Anyone who’s moseyed around a Target or Kmart will be familiar with the in-house Anko brand, which makes everything from notepads, candles, air fryers, storage containers and vacuums, to toys, dust pans, Halloween costumes, books and air purifiers.

 

Anko products on catch.com.au.

It’s also sold through catch.com.au.

“Kmart Group is benefitting from the strong value credentials and uniqueness of its Anko products,” Chaney said.

“Kmart’s direct sourcing capabilities provide unique products through the Anko brand, at low prices, and sourced in an ethical and sustainable manner.” 

He said Kmart has focused on digitising many of its product design, sourcing and inventory processes.

 

A pooch in a trolley at a Bunnings.

 

CEO Rob Scott said Bunnings had made “significant improvements in areas of range expansion, rostering and development of digital tools instore and online. As Bunnings has expanded its offer into areas such as consumables, auto accessories and commercial tools, it has brought more value, competition and choice to the market”.

He said Officeworks last year commissioned its second automated fulfilment centre (in Perth).

“Officeworks’ sales growth continues to be supported by higher technology sales, now representing approximately 59 per cent of its sales, but demand from business customers, particularly small and medium-sized businesses, has been impacted by challenging business conditions.”