ASX-listed Wesfarmers Limited (AU:WES) achieved profit and dividend growth in its full-year results for FY24. The company’s NPAT (net profit after tax) grew 3.7% year-over-year to AU$2.5 billion. As a result, the company declared a final dividend of AU$1.07 per share, bringing the total dividend for FY24 to AU$1.98 per share. The full-year dividend reflected a year-over-year increase of 3.7%.
Despite the solid numbers, Wesfarmers shares fell 4.07% today, as the company cautioned investors about a market-wide softness in building activity in FY25.
Wesfarmers is an Australian group with operations spanning home décor, beauty, pharmacy, retail, apparel, and several other sectors.
Wesfarmers Posts Growth Fueled by Retail
Wesfarmers reported revenue growth of 1.5% to AU$44.2 billion in FY24. The company’s EBIT (earnings before interest and tax) increased 3.3% to AU$3.99 billion compared to the previous fiscal year. This growth was mainly fueled by the strong sales in Wesfarmers’ retail segments.
Among its segments, Kmart saw a 4.4% increase in revenue and a 24.6% rise in earnings in FY24. Meanwhile, Bunnings Group reported a 2.3% revenue growth. The company’s health division, Wesfarmers Health, delivered an impressive performance, with a 5.9% revenue increase and an 11.1% growth in earnings.
On the other hand, in the industrial division, WesCEF experienced a decline in earnings due to lower global commodity prices. This led to a 34.2% drop in WesCEF’s FY24 profits.
Is Wesfarmers a Good Stock to Buy?
Year-to-date, WES stock has gained 29% in trading.
Moving ahead, analysts remain cautious about the share price performance and expect downside. Today, Citi analyst Adrian Lemme downgraded his rating on WES stock from Hold to Sell, predicting a downside of 18%. At the same time, Goldman Sachs and UBS maintained their Hold ratings.
As per TipRanks, WES stock received a Hold rating backed by three Holds and one Sell recommendation. The Wesfarmers share price forecast is AU$62.61, which is 15.4% below the current level.
