WESFARMERS released its 2025 full-year results this morning, reporting a net profit after tax of $2.9 billion for the group.
Earnings for Wesfarmers Health, which includes Priceline, InstantScripts and API, came in at $64 million, an increase of 28% on the $50 million in FY24.
The consumer segment performed well, with strong growth in sales and earnings off the back of 31 new stores opening, price reductions on around 150 key value lines, and the launch of beauty retailer Atomica (PD 21 Jan) and InstantScripts Pharmacy Health Hub pilot stores (PD 02 Jul).
The wholesale segment was impacted by higher fulfilment costs and a competitive marketplace, but reported expansion and upgrades of its distribution centres, with more planned over the next two years.
Priceline Pharmacy's headline network sales, including dispensary sales, increased 11.9%.
"Priceline Pharmacy's Retail sales were supported by network expansion, price reductions on key value lines, the launch of new and exclusive brands, and the ongoing contribution of the Sister Club, Australia's largest health and beauty loyalty program with 9.6 million members," the company said in an ASX statement.
It noted Wesfarmers Health is well positioned to improve long-term earnings and returns, driven by Priceline network growth, as it capitalises on growing consumer demand for health and wellness.
"The focus is on growing share and scale in the higher-margin and less capital-intensive Consumer segment and improving performance in the Wholesale segment," it said.
The Wesfarmers business - which in addition to Wesfarmers Health includes the Bunnings Group, Kmart Group and Officeworks - had a total revenue of $45.7 billion, up 3.4% on FY24.
Also announced this morning was Chairman Michael Chaney's decision to retire, with ex-BHP Chairman Ken MacKenzie to succeed him next year.
"Wesfarmers' share price has gone up by 27% since the start of the year and today's results were at the top end of expectations, which should bode well for future growth," Jamie Hannah of investment management firm VanEck told Pharmacy Daily.
"The change at the top shouldn't change the future direction of Wesfarmers and we remain confident in their depth of management," he continued.
"While the market remains skeptical of future growth, today's results should confirm that they're heading in the right direction." KB
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