Wesfarmers, the retail giant, has recorded a great half-year performance, with a net profit of $1.4 billion, up 14% from the previous year.
Profits increased by 27% as revenue increased by 27% to around $23 billion. Bunnings, a hardware and home improvement shop owned by Wesfarmers, had a 6.3 percent gain in sales, while Kmart saw a 24.1 percent increase in sales.
However, sales in Wesfarmers’ chemical section decreased by almost 30%.
“The big profits performance for Kmart Group reflected great operational execution, with comparable sales and volume increase,” Wesfarmers CEO Rob Scott told investors.
The outcome comes barely six months after Kmart Group’s CEO stated that the firm was changing its product production to ensure that it could maintain its pricing low as growing inflation impacted companies and families.
The department store has employed a business strategy known as “vertical integration” to control what materials are used to make its items, allowing it to change things when costs fluctuate.