CANBERA (dpa-AFX) - Australian retailer Wesfarmers Ltd. (WES.AX, WFAFF.PK) reported Wednesday that its fiscal 2016 net profit attributable to members plunged 83.3 percent to A$407 million from last year's A$2.44 billion. Earnings per share were 36.2 cents, down from 215.7 cents a year ago.
The latest results included non-cash impairments of Target and Curragh totaling A$2.116 billion before tax, as well as A$145 million of restructuring costs and provisions to reset Target. Excluding these significant items, net profit decreased 3.6 percent to A$2.353 billion.
Managing Director Richard Goyder stated that strong performances across a majority of the company's businesses were offset by challenging trading conditions and restructuring activities in Target, and the impact of low commodity prices in the Resources business.
Revenue from ordinary activities, however, improved 5.7 percent to A$65.98 billion from A$62.45 billion last year.
Further, the company announced that a final ordinary dividend of A$0.95 per share has been declared, lower than last year's final dividend of A$1.11. This brings the full-year ordinary dividend to A$1.86 per share, down from last year's A$2 per share.
Looking ahead, the company said competition in the retail sector is expected to remain robust, with value continuing to be important to customers.
Copyright RTT News/dpa-AFX