WES - Wesfarmers Limited

[farmerge]

WES is one of my picks in the Y24 Comp @debtfree and I sold it during the year.

I am looking at getting back in. and WES is showing some signs of weakness at last. I'll not be greedy and buy in around $60. I haad predicted it would get to $100 this calendar year. this seems optimistic atm.

A chart.

View attachment 185356

gg

But still a top of the wozza table company

 

[Dona Ferentes]

WES is down 2 percent, not that far behind Metcash today.

MTS came out with a rather bleak view on the Hardware sector:

".. external market for the Independent Hardware Group (IHG) continued to be very challenging with Trade activity softening even further. It was also noted that retail store margins in IHG were facing pressure due to the impact of lower volumes on fixed costs.

"Since that update, there has been additional margin pressure in retail stores in September and October, particularly in Trade due to further sales weakness. This weakness in retail store sales has been offset by lower-margin wholesale sales.

 

[Garpal Gumnut]

Indeed @Dona Ferentes If Wes drops below $67.25 it will be in a proper downtrend with consecutive lower highs and lower lows. I didn’t realise hardware was doing so badly. I may hold off buying back in for a while.

Wes is one of my picks @debtfree in the 2024 comp. Enclosed is a chart. Some support coming up soon at $65.

gg

 

[divs4ever]

maybe a quick read of the MTS update , will add extra insight ( into the hardware sector )

i hold WES and bought back into MTS this morning on the dip

but hardware could be an interesting sector to watch , for spending/activity

i also note RWC ( i hold ) took a bit of a bashing today , also

maybe this economy isn't so resilient , after all ( note the affect of tobacco sales in the MTS update )

 

[farmerge]

WES Wesfarmers Limited Down a couple of dollars on last months end but still a top of the wozza company to hold.

 

[Garpal Gumnut]

This is my post for Nov in the Y24 Stock Comp @debtfree on WES and it is rather gobsmacking. It is from an email I received from Market Index www.marketindex.com.au.

I sold WES during the year and it headed higher ! I've been waiting to re-enter on a retracement. I may wait a bit longer as the sp has been falling faster than is decent recently.

Where does the revenue go?​

This excerpt from Wesfarmers’ AGM and it's a pretty big eye opener for where revenues go. Wesfarmers generated revenue just over $44 billion in FY24 $29 billion (or 65%) went to suppliers, there are more than 27,000 of them $6.3 billion or (14%) went to their 120,000 team members in wages $4.4 billion (10%) went on rent, freight and other services $0.5 billion (1.1%) went to governments in payroll taxes and other charges $200 million (0.5%) went to their lenders This leaves the company with about $3.6 billion in profit before tax or 8% of the original revenue. From here: $1.0 billion (29%) went to the Federal government as income tax $2.2 billion (61%) goes back to shareholders, including individuals and superannuation funds The remaining 10% (or about one per cent of the original revenue) went to retained earnings In other words, almost all the profit ended up outside the company.

gg

 

[Dona Ferentes]

In other words, almost all the profit ended up outside the company

I'd call them Margins.

 

[Garpal Gumnut]

I'd call them Margins.

Good point @Dona Ferentes . For non-finance people such as I the difference between profit and margin and their application is summarised quite well in this article.

Margin vs Profit - What Is It, Infographics & Key Differences

Guide to Difference Between Margin & Profit. We explain the differences using infographics, comparison table, and listing the key differences.

www.wallstreetmojo.com

gg

 

[Dona Ferentes]

Indeed @Dona Ferentes If Wes drops below $67.25 it will be in a proper downtrend with consecutive lower highs and lower lows. I didn’t realise hardware was doing so badly. I may hold off buying back in for a while.

I have been watching ... foot traffic at local Bunnings. seems a busy place, the garden section doing great guns ( it's spring)

.
And around 67 bucks, then it did move. To the upside

 

[divs4ever]

I have been watching ... foot traffic at local Bunnings. seems a busy place, the garden section doing great guns ( it's spring)

View attachment 188446
.
And around 67 bucks, then it did move. To the upside

starting to grow their own fruit, vegies and herbs at home , perhaps ?

might be an economic indicator right there

 

[farmerge]

I was in the local Bunnings in Midland a few days ago.
No such thing as a quite time according to the lady on the door when I inquired to where I might find what I was wanting.

 

[farmerge]

WES Wesfarmers Limited. Top of the Royal Iced Cake.
Still powering upward and SP is up on last month.
For those holding since January a very healthy improvement for the 11 months.
A must have in any portfolio.

 

[Dona Ferentes]

is this the next string in the bow? chastened by UK bunnings,
.
.
Ian Bailey has led Wesfarmers’ Kmart Group, which also owns Target, since 2016. Next year he will step into the new role of chairman at Anko Global, as Wesfarmers realises the potential to take its 12,000-product decor and everyday living essentials brand international.

Anko at its core is a product design business and supply chain partner, evolving from its origins in 2019 as Kmart’s in-house specialty sourcing business, and now sells more than one billion items every year.
“We haven’t seen anybody yet that we feel like has got something so unique that it’s going to put us in a corner,” Bailey tells AFR Weekend.

The move to anoint a chairman comes as Anko opens its first store in Manila, with another two to open in the Philippines early next year. The Philippines was chosen because of its large representation of middle-income city-dwelling shoppers who love malls. It took on a local partner in conglomerate Ayala Corp, which spans real estate, banking and telecommunications, and helped smooth the way.
.
"We’re going to be very commercial in the way that we grow the business.”

As Anko chairman, he will manage relationships with global partners in the US and Europe. Last year, for example, Anko signed a deal with Mattel’s Fisher-Price brand to produce wooden toys and sell them in 1000 Walmart stores. Mattel is now selling those Anko toys around the globe, from Europe to South Africa and even in Australia.

Not everything has gone to plan. Anko’s goal to sell directly to consumers in India – where its head office is located – through Amazon and Flipkart, an Indian e-commerce platform, failed. Anko also opened a store in Seattle and shut it during the COVID-19 pandemic. Last year, Anko signed with Canadian department store Hudson’s Bay but it has struck financial trouble, so Bailey says Anko will not invest in expanding that relationship.

 

[farmerge]

is this the next string in the bow? chastened by UK bunnings,
.
.
Ian Bailey has led Wesfarmers’ Kmart Group, which also owns Target, since 2016. Next year he will step into the new role of chairman at Anko Global, as Wesfarmers realises the potential to take its 12,000-product decor and everyday living essentials brand international.

Anko at its core is a product design business and supply chain partner, evolving from its origins in 2019 as Kmart’s in-house specialty sourcing business, and now sells more than one billion items every year.
“We haven’t seen anybody yet that we feel like has got something so unique that it’s going to put us in a corner,” Bailey tells AFR Weekend.

The move to anoint a chairman comes as Anko opens its first store in Manila, with another two to open in the Philippines early next year. The Philippines was chosen because of its large representation of middle-income city-dwelling shoppers who love malls. It took on a local partner in conglomerate Ayala Corp, which spans real estate, banking and telecommunications, and helped smooth the way.
.
"We’re going to be very commercial in the way that we grow the business.”

As Anko chairman, he will manage relationships with global partners in the US and Europe. Last year, for example, Anko signed a deal with Mattel’s Fisher-Price brand to produce wooden toys and sell them in 1000 Walmart stores. Mattel is now selling those Anko toys around the globe, from Europe to South Africa and even in Australia.

Not everything has gone to plan. Anko’s goal to sell directly to consumers in India – where its head office is located – through Amazon and Flipkart, an Indian e-commerce platform, failed. Anko also opened a store in Seattle and shut it during the COVID-19 pandemic. Last year, Anko signed with Canadian department store Hudson’s Bay but it has struck financial trouble, so Bailey says Anko will not invest in expanding that relationship.

@Dona Ferentes Who would have thought that Bunnings, a timber company here in WA all those years ago that was on the verge of going "belly up" would be the monolith it is today.
Of course Wesfarmers was always going to be a monster company.

 

[Dona Ferentes]

Who would have thought that Bunnings, a timber company here in WA all those years ago that was on the verge of going "belly up" would be the monolith it is today.

110 year old, started as a agricultural supplier

listed for 40 years

... but yes it was the move to hardware/ retail that has made them
McEwans 1993
Bunnings 1994
Howard Smith 2001

Our history

www.wesfarmers.com.au

 

[farmerge]

110 year old, started as a agricultural supplier

listed for 40 years

... but yes it was the move to hardware/ retail that has made them
McEwans 1993
Bunnings 1994
Howard Smith 2001

Our history

www.wesfarmers.com.au

@Dona Ferentes My grandfather was a founding member of the Wesfarmers Co-op all those years ago when he was farming at Coorow, 3 hours north of Perth.
Every country town had a Wesfarmers Co-op in the years that followed.

 

[sptrawler]

@Dona Ferentes My grandfather was a founding member of the Wesfarmers Co-op all those years ago when he was farming at Coorow, 3 hours north of Perth.
Every country town had a Wesfarmers Co-op in the years that followed.

Yes I picked up my WES, through the franked income fund.

 

[divs4ever]

Agreement to sell Coregas

Wesfarmers today announced it has agreed to sell its Coregas business to a subsidiary of Nippon Sanso Holdings Corporation (“NSHD”) for $770 million.

On successful completion of the transaction, Wesfarmers expects to report a pre-tax profit on sale of approximately $230 million to $260 million, subject to completion adjustments.
The sale is subject to the receipt of certain consents and approvals, including from the Australian Competition and Consumer Commission and Foreign Investment Review Board.
Coregas is part of the Wesfarmers Industrial and Safety division and is one of Australia’s largest manufacturers and suppliers of industrial gases.
The business distributes industrial, medical and specialty gases in cylinders and offers a wide range of bulk gases for medium to large users across Australia and New Zealand.
NSHD is listed on the Tokyo Stock Exchange and is headquartered in Japan.
NSHD is the world’s fourth largest supplier of industrial, electronic and medical gases operating in over 30 countries, across Japan,the United States, Europe, Asia and Oceania.
In Australia, NSHD’s wholly owned subsidiary Supagas PtyLimited is a leading supplier of liquefied petroleum gas, industrial, medical, specialty and helium gases.
Wesfarmers Managing Director Rob Scott said the agreement to sell Coregas delivers value for shareholders and recognises the strong growth delivered by Coregas in the industrial gases markets across Australia and New Zealand.
“We believe the divestment is in the best interests of Wesfarmers shareholders and is consistent with our disciplined focus on portfolio management.
The sale gives customers and team members of Coregas the opportunity to join an established business in NSHD, which has global expertise owning and operating successful industrial gas businesses,” Mr Scott said.
“I thank all the Coregas team for their efforts in significantly growing and improving the business. They should be very proud of the Coregas business and I am confident there will be new opportunities that will arise with NSHD, a global leader in industrial gases.”Mr Scott said the remaining businesses in the Industrial and Safety division will continue to execute their strategies to create shareholder value, with ongoing investment from Wesfarmers.
“We continue to see attractive opportunities to deliver satisfactory returns for shareholders over the long-term from Blackwoods and Workwear Group.”

Excluding Coregas, the remaining businesses in the Industrial and Safety division generated earnings before tax of $72 million in the 2024 financial year.

Subject to satisfying conditions precedent, Wesfarmers expects the sale of Coregas to complete by mid-calendar year 2025.

i hold WES

 

[Dona Ferentes]

Coregas - not so core, it would seem