Wesfarmers Limited (ASX:WES)

Rob Scott
MD
Market Cap (AUD): 63.76B
Sector: Consumer Discretionary
Last Trade (AUD): 55.55 +0 (+0%)
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1. About

Wesfarmers Limited's (ASX:WES) diverse business operations cover: home improvement and outdoor living; apparel and general merchandise; office supplies; and an Industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.

Bunnings

Bunnings is the leading retailer of home improvement and outdoor living products in Australia and New Zealand and a major supplier to project builders, commercial tradespeople and the housing industry. Operating from a network of large warehouse stores, smaller format stores, trade centres and frame and truss sites, Bunnings caters for consumer and commercial customers.

Kmart Group

The Kmart Group (formerly known as the Department Stores division) comprises the Kmart and Target businesses.

Kmart

Kmart operates 228 stores throughout Australia and New Zealand, offering customers a wide range of apparel and general merchandise products at low prices, every day.

Target

Target operates a national network of 303 stores as well as online. Its objective is to provide quality and fashion at the best prices.

Officeworks

Officeworks is Australia's leading retailer and supplier of office products and solutions for home, business and education. Officeworks has an Australia-wide network of stores and with its business channel offers customer three ways to shop: in store, online or by phone. Officeworks caters to a broad range of customers, including businesses of all sizes, students, teachers and educational institutions.

Industrials

Chemicals, Energy and Fertiliser

Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) operate eight businesses in Australia and employs approximately 1,200 team members. WesCEF's business units are Chemicals, Energy (Kleenheat), and CSBP Fertilisers.

CSBP Ammonia, Ammonium Nitrate and Industrial Chemicals

CSBP manufactures and supplies ammonia, ammonium nitrate and industrial chemicals to the Western Australian resource and industrial sectors. CSBP also supplies ammonium nitrate via break bulk shipments nationally and internationally.

CSBP Fertilisers

CSBP Fertilisers manufacture, import and distribute phosphate, nitrogen and potassium-based fertilisers in blended, compound and liquid form for the Western Australian agricultural sector. CSBP also offers farmers a comprehensive soil and plant analysis service supported by the NUlogic interpretation model delivered by its network of staff and accredited partners in regional WA.

Australian Vinyls 

Australian Vinyls is Australia's leading supplier of polyvinyl chloride resins. Vinyl resin is used in a wide range of products such as piping, cable insulation, floor coverings, building profiles, packaging and compounds. AV's subsidiary ModWood produces wood-plastic composite products from recycled wood and plastic.

Australian Gold Reagents

AGR is a 75% owned joint venture with Coogee Chemicals. It is Western Australia’s sole manufacturer of sodium cyanide, which is used in the mining industry for gold extraction. AGR has been manufacturing and distributing sodium cyanide to the WA and international gold mining industry for over 20 years and is also a key supplier to international gold mining operations.

Queensland Nitrates

CSBP has a 50% interest in QNP, a fully integrated ammonia/ammonium nitrate facility located near Moura in central Queensland. QNP has a manufacturing capacity of approximately 230,000 tonnes per year of explosive grade ammonium nitrate.

EVOL LNG

EVOL LNG is a part of Kleenheat, producing and supplying liquefied natural gas (LNG) as a fuel for remote power stations, industrial facilities, marine bunkering and transportation.

Kleenheat

Kleenheat is an energy solutions provider in Western Australia and the Northern Territory. Kleenheat produces, imports and distributes liquefied petroleum gas (LPG) to residential and commercial markets across WA and NT through a comprehensive network of distribution centres and dealers; as well as retailing natural gas to residential and commercial markets, and electricity to businesses in WA.

Blackwoods

Blackwoods is a leading supplier of tools, safety gear, workwear and other industrial supplies to businesses of all sizes across Australia. As a full-service provider, Blackwoods offers a wide range of product choices, supported by reliable advice and service, along with expert technical knowledge and solutions.

NZ Safety Blackwoods

NZ Safety, Blackwoods Protector and Packaging House have joined forces to offer more than ever before. NZ Safety Blackwoods delivers the very best in safety, uniforms, engineering supplies and packaging. Expect more choice, more specialist expertise and same great service, all under one roof.

Greencap

Greencap is the largest integrated risk management and compliance company in Australia. With more than 360 professional, technical and engineering staff based in 10 offices in Australia and Asia, Greencap service thousands of private and government clients in the education, property, resources, industrial, manufacturing, retail and services sectors.

Coregas

Coregas is the largest Australian-owned industrial, medical and specialty gas company. Its products range from common gases such as oxygen, nitrogen and argon to rarer gases such as krypton. It produces air gases at two air separation units in New South Wales and Queensland, plus acetylene and a state-of-the-art specialty gas laboratory in New South Wales.

Workwear Group

The Workwear Group has a portfolio of eight market-leading brands across apparel and footwear including King Gee, Hard Yakka, Stubbies, Bates, Wolverine, Totally Workwear, NNT and Incorporate Wear. The Group adopts an end to end, solution-focused approach to managing every phase in its customers' workwear cycle. 

Other Businesses

Coles

Wesfarmers holds a 10.1% interest in Coles Group Limited. Coles is a leading Australian retailer which sells everyday products including fresh food, groceries, household goods, liquor, fuel and financial services via its national store networks and online platforms.

flybuys

Wesfarmers and Coles Group Limited each own a 50% shareholding in leading loyalty and data company flybuys. Flybuys has more than eight million active members, covering approximately two thirds of Australian households and has more than 20 major participating partners.

BWP Trust

Wesfarmers holds an interest of 24.8% of the BWP Trust, an ASX-listed property trust which owns predominantly warehouse retailing properties and, in particular, Bunnings warehouses leased to Bunnings Group Limited. 

Gresham Partners

Wesfarmers has a 50% interest in Gresham Partners Group Limited, the holding company for the Gresham Partners operations. Gresham is a leading independent financial services business with activities in corporate advisory, funds management, property, and capital solutions.

Wespine Industries

Wesfarmers has a 50% interest in Wespine Industries, which operates a plantation softwood sawmill in Dardanup in Western Australia. The mill's main product is machine-graded pine used in roof frames and other building construction.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk