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Coles pushes up Wesfarmers profits

Wesfarmers has reported a six percent rise in full year net profit, thanks, in part, to its supermarket chain, Coles.

The company posted net profit of $2.26 billion in the 12 months to June, up from $2.13 billion the previous year.

It's also announced a $579 million capital return to shareholders, prompting a 1.8 percent rise in shares to $42.72, SMH reports.

The profit rise  is short of analysts' forecasts, who had expected a rise of 7.6 percent.

Wesfarmers' supermarket chain, Coles, represents 40 percent of its total earnings and experiencing a rise of 11.4 percent in food and liquor earnings before interest and tax, to $1.37 billion.

Coles' key competitor, Woolworths, reported a 4.3 percent rise in fourth quarter total group sales year-on-year.

Both supermarket chains have engaged in strong price cutting strategies this year, Coles with its Down Down campaign and Woolworths counter-attacking with its Every Day Value discounts.

 

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