Bunnings boss declares profit is not a ‘dirty word’ after raking in $44billion windfall

The chairman of retail conglomerate Wesfarmers has defended the role of big business in Australia and lashed out at “political leaders of all persuasions”.

In a staunch address to shareholders at the company’s annual general meeting on Thursday, Michael Chaney said there was “too little appreciation” for where all the money was going.

The retail giant, which owns a host of iconic brands including Kmart, Bunnings and Officeworks, raked in $44 billion in revenue in the 2024 financial year.

“There is, I think, too little appreciation of the enormous contribution that major companies like Wesfarmers make to the Australian economy and it is worth pointing out how important that contribution is,” he said.

He said that $29 billion (about 65 percent) of revenues went to suppliers, $6.3 billion to wages, $4.4 billion to rent, freight and other services and about $500 million to the government was transferred to payroll taxes and other services. costs.

The company posted a pre-tax profit of about $3.6 billion, or eight percent of its original sales.

“Now profit seems like a dirty word to some external parties,” he says.

‘But it is important to understand how profitable businesses are essential to our economy and future prosperity.

Wesfarmers chairman Michael Chaney defended the big companies in a firm speech to shareholders at the General Meeting of Shareholders in Perth on Thursday

“For starters, companies have to be profitable to stay in business – to do everything I just mentioned, like hiring people, sourcing products and services from suppliers, giving customers what they need and supporting their communities.”

Of the $3.6 billion figure, Chaney said 10 percent went to retained earnings, while the rest went to shareholders and pension funds or federal government taxes.

“It would be good to hear political leaders of all persuasions acknowledge their understanding of these facts,” he said.

‘That large companies like ours are an essential part of the economy, generating enormous benefits for the community and making a huge contribution to society.

‘Companies, large and small, deserve their support.’

Wesfarmers owns some of Australia’s largest retailers including Bunnings Warehouse, Kmart, Target, Bunnings and Officeworks

Some major companies have come under political pressure in recent years, with some politicians and community members outraged by the contrast between companies making significant profits as Australians struggle through an ongoing cost-of-living crisis.

Mr. Chaney warned that the mood of the moment threatens national productivity.

“I’m referring here to the many changes we’ve seen in labor laws, payroll taxes and some proposed environmental laws,” he said.

“Only through a prosperous, vibrant, growing private sector will Australia be able to provide our children and grandchildren with the kind of support we have taken for granted in the past.”