Industrial conglomerate Wesfarmers, which also owns Officeworks and Target alongside smaller chemicals and fertiliser businesses, made a base net profit of $2.87 billion, a fall of 1.8 per cent, in 2025/26.
But after excluding a gain from an asset sale in the previous year, the result was much better, with an increase of 8.3 per cent for the 12 months ended June 30, on a revenue lift of 3.4 per cent to $47.27 billion.
Chief executive Rob Scott said the overall result was supported by strong earnings contributions from its key Bunnings, Kmart and chemicals, energy and fertiliser groups.
"As households continued to experience cost of living pressures, our retail businesses dropped prices on thousands of products during the year to support household budgets," he said on Thursday.
The "everyday low prices" campaigns by Bunnings Warehouse and Kmart group continued to drive sales and earnings.
"Kmart group's higher earnings were supported by the strong value credentials of its Anko (household goods brand) products and focus on operating efficiency and cost control," he said.
Bunnings sales lifted 3.9 per cent to $20.33 billion, accounting for the lion's share of Wesfarmers' total sales, followed by Kmart group, which includes Target, at $11.66 billion, a gain of 2.8 per cent.
Officeworks sales also rose by 3.7 per cent, to $3.68 billion.
The chemicals, energy and fertiliser group delivered a stellar 5.9 per cent sales gain to $3.14 billion, on the back of higher prices for fertilisers and spodumene concentrate, which is used to extract lithium compounds used in batteries.
The well-known Priceline chain lifted network sales by 12.7 per cent, helping the overall health division to sales of $6.47 billion.
"Priceline Pharmacy will continue to invest in value, a differentiated range and service and its loyalty and digital assets, including the new Pulse Rewards program," Wesfarmers said.
Looking ahead, Wesfarmers said high inflation continues to impact households and businesses.
"While Australian consumer demand remains resilient, cost of living pressures continue to affect many households across the economy," it said.
"Uncertainty regarding the outlook for inflation, house prices, interest rates and tax setting are affecting consumer sentiment, while higher costs of doing business are weighing on business confidence and spending."
In the first seven weeks of 2026/27, Bunnings sales were slightly above the second half of 2025/26, helped by unseasonably dry weather in July.
Kmart group's sales were little changed, while Officeworks turned in a positive performance.
Wesfarmers declared a final dividend of $1.20, taking the total for the year to $2.22.
