Australian retail conglomerate Wesfarmers on Thursday posted a 14.2% drop in first-half profit due to Covid-19 curbs and supply chain disruptions, and warned issues including labour constraints will persist in the second half.
Last month, Wesfarmers flagged that a wave of Omicron infections in the country reduced physical traffic at its stores, weakening retail trading at its Kmart Group and Officeworks divisions.
The Perth-based conglomerate’s half-year net profit after tax from continuing operations stood at A$1.21 billion ($870.8 million), compared with A$1.41 billion a year earlier.
“The group has continued to incur additional costs and experience stock availability impacts as a result of ongoing global supply chain disruptions, elevated team member absenteeism and delays with third party logistics providers,” it said.
The Kmart Group, which made up roughly a third of total revenue in fiscal 2021 and lost about a quarter of its store trading days in the first half, saw its pre-tax earnings tumble 63.4% to A$178 million.
Wesfarmers paid an interim dividend of 80 Australian cents per share, compared with 88 cents last year.
- Reuters, with additional editing by George Russell
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