Revenue from expanding retailers Bunnings and Kmart Group rose to a combined A$21.6 billion from Australasia, with both businesses saying they are continuing to open new stores here and across the Tasman.
ASX-listed Wesfarmers, which owns both businesses, declared its result for the June 30, 2019 year with net profit jumping to A$5.5 billion assisted by $3.17b of gains from its Coles de-merger.
Bunnings pushed up revenue 5 per cent in the latest year to make A$13.1 billion while Kmart Group revenue - which includes Target - rose 1.1 per cent to A$8.59b. Last year, they made A$12.5b and$8.50b.
Bunnings' operating profit or EBIT rose 8 per cent from $1.5b to $1.6b. Kmart's fell 14 per cent from A$660m to A$550m.
Kmart Group's result included that of the Australian-only chain, Target.
Bunnings is developing its largest new store on Auckland's north-west fringes at the NZ Retail Property Group-owned Westgate new town centre while Kmart this month opened a 24/7 store at Sylvia Park, Mt Wellington.
Neither Bunnings nor Kmart split out New Zealand earnings in yesterday's announcement.
But a Companies Office documents filed in December last year showed Bunnings' New Zealand-only revenue for the year to June 30, 2018 was $1.2b, up on the $1.1b for the year to June 30, 2017. Profit after income tax rose from $27.9m to $34.9m.
NZ Companies Office filings from Kmart NZ Holdings declared revenue of $515m for the year to June 30, 2018, up on the $438m in the year to June 30, 2017.
In the ASX result yesterday, Bunnings said it was developing 13 new stores in Australia and New Zealand. Kmart said it had opened four new stores in the year.
Bunnings referred to the continuation of a favourable commercial property market which it said resulted in higher than usual property divestment contributions. Total store sales grew 5.2 per cent and store-on-store sales rose 3.9 per cent, it said.
Michael Schneider, Bunnings' managing director for Australasia, said the results were solid and the business would continue to build on its market strength. A presentation cited 17 "new trading locations opened" in the last year across Australasia.
As well as click and collect, Bunnings would expand its home and lifestyle product range online and through its store offers. Schneider said it was still early days in terms of the online offering.
Bunnings has 267 warehouses, 75 smaller format stores and 32 trade centres "and a further 13 stores under construction".
Kmart Group's presentation to the ASX cited "flat comparable sales growth" and explained that by referring to lower growth in apparel and non-seasonal products, its exit from the DVD category but "offset by modest growth in home and kids' general merchandise".
Kmart "earnings declined impacted by moderation in sales momentum, implementation of a number of initiatives to optimise product flow and store processes and increase in stock loss".
Kmart had "opened four new stores including one replacement, closed one store and completed 23 store refurbishments".
Kmart's outlook said that network of stores was well-positioned for the future.
Kmart ended the period with improved sales momentum and said it would focus on creating a great place to shop that is simple to run and delivered "better products at even lower prices".
Kmart says it aims to maintain its lowest price leadership position and accelerate digital capacity to drive sales and reduce costs.
An analyst note from Jarden said Wesfarmers' result yesterday was in line with market expectations and no new risks emerged.
"Material value creation for the group in the foreseeable future hinges on further expansion of the Bunnings platform. Expansion of a digital platform for trade and category expansion within the warehouse footprint appear to be progressing and relatively low risk. Longer-term options include the leveraging of Catch Group's digital market place within Kmart Group," the Jarden analysis said.
Wesfarmers has a market capitalisation of A$44.3b and its shares were yesterday trading around A$39.10. It is not listed on the NZX.