Profit not a dirty word, Wesfarmers chair Michael Chaney tells AGM

Wesfarmers chair Michael Chaney has lashed out at critics of the WA-based empire as it continues to power through the cost-of-living crisis that is squeezing millions of Australian households, saying profit is not “a dirty word”.

Mr Chaney told Thursday’s annual general meeting that “almost all” of the profit generate by its business division — which includes Bunnings, Kmart, Target and Officeworks — ended up outside the company, “supporting the economy and community in different ways”.

“Now for some external parties, profit seems to be a dirty word, but it is important to understand how profitable businesses are essential to our economy and future prosperity,” he said.

Wesfarmers in August was forced to return fire against Opposition Leader Peter Dutton, who made claims of price-gouging by its flagship Bunnings business and other big-box retailers.

Wesfarmers disclosed a 3.7 per cent increase in annual profit to $2.56 billion on a 1.5 per cent increase in revenue to $44.2b, despite the cost-of-living pressures weighing on consumer spending.

Bunnings, which accounts for the lion’s share of Wesfarmers’ profit, led the way with just a 0.9 per cent increase in pre-tax profit to $2.2b in the year to June 30. Its profit margin actually fell to 11.9 per cent from 12 per cent previously and is down from 13 per cent in 2021.

Mr Chaney used his address to take another swipe at Canberra.

“It would be good to hear political leaders of all persuasions acknowledge their understanding of these facts – that large companies like ours constitute a vital part of the economy, generate enormous benefits to the community and make a huge contribution to society. Companies, large and small, deserve their support,” he said.

More to come.