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Wesfarmers (WES) - 2025 strategy day insights

Talking up growth

03 June 2025

Wesfarmers’ strategy sets an expectation for high-single digit earnings growth. However, the reality will still be some way off given growing losses in lithium. There is little room for any competitive risk to Bunnings or Kmart and a lot priced in for growth from these businesses that account for over 85% of enterprise value. Wesfarmers’ strategy continues to shift towards a focus on organic growth. There are opportunities in new product categories for Bunnings and Officeworks, retail media, online marketplaces and production expansion for WesCEF. The message around acquisitions was intriguing – plenty of desire, few viable options.

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