Wesfarmers to gain $2.1b from Coles spinoff

Wesfarmer to gain $2.1b from Coles spinoff

Agribusiness
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'Wesfarmers enters the new calendar year with a strong balance sheet.'

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Wesfarmers is expecting to post earnings before interest and tax of between $385 million and $400 million when it reports its half year results on 21 February.

The company is expected to gain $2.1 billion to $2.3 billion from the November demerger of is Coles supermarket division, and $670 million to $680 million from the sales of its stake in the Bengalla coal mine.

Wesfarmers says comparable store sales in its Targets stores have risen 0.5 per cent on the previous corresponding period

This was offset by Kmart, which posted a comparable store sales decline of 0.6 per cent, excluding the gain on sale of the Kmart auto unit.

Kmart sales growth was impacted by the planned exit of the low margin DVD products, weaker sales in apparel categories, particularly womenswear.

Managing Director Rob Scott said the company's performance continues to benefit from its diverse portfolio of businesses and interests.

“All of our businesses continue to deliver a compelling offer to their customers and Wesfarmers enters the new calendar year with a strong balance sheet and operating businesses well positioned for the future," he said.

Australian Associated Press

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