Coal-to-groceries conglomerate Wesfarmers posted a 46% jump in first-half profits today (16 February) thanks to its purchase of Coles supermarkets in November 2007.
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The company saw profits total A$879m (US$580.1m) in the six months to 31 December, up from A$601m for the comparable year-ago period.
The group’s first-half results in fiscal 2007 included little over a month of profits from Coles, Target, Kmart and Officeworks.
In its results release, Wesfarmers said that it had made “encouraging” progress as it looks to increase profitability at the struggling supermarket, but warned that “meaningful and sustainable change will take time”.
The company said that it has stabilised Coles’ market share – which had witnessed rapid decline as it lost customers to larger rival Woolworths.
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By GlobalDataColes’ revenue was A$14.63bn for the half and earnings before interest and taxes totalled A$431m.
However, management warned that a tougher economic outlook and lower consumer confidence would weigh on Coles in the second half.
Wesfarmers’ total revenue increased from A$9.81bn to A$26.4bn during the period.
