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Wesfarmers garage sale is all but complete, so all eyes are on where the company goes next to actually grow and add value to the business.

 

Next week, management gather in Melbourne for the two-yearly focus session with this one entitled ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Tomorrow begins todayÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ. Digital and data are key focus sessions, with the outside speakers including McKinseyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s data analysis guru Tamim Saleh, Sydney-educated World Economic Forum strategist Nicholas Davis, AkinÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s artificial intelligence guru Liesl Yearsley, Hot SpotÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Emma Birchall on the future of work, and SeekÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Andrew Bassat on how to disrupt your business.

 

Wesfarmers boss Rob Scott is a big believer in data analytics, having established a centre in Melbourne under Alan Lowthorpe aimed at working out better ways to exploit data mining.

- John Durie.

 

It was said earlier on that WES in it's new iteration would be unrecognisable; let's hope the new version matches the modern paradigms

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Excluding impairment charges and one-off items, Wesfarmers' underlying net profit from continuing operations rose 5.2 per cent to $2.9 billion in the year ended June 30 - beating consensus forecasts of about $2.78 billion - as double-digit profit growth at Bunnings, Kmart and its remaining industrial businesses offset a weak first-half result at Coles.

 

Is Bunnings really doing that well? If impairments and one offs occur every year are they acutally impairments and one offs? Buffett doesn't think so.

 

 

 

 

 

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  • 1 month later...
ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Demerger of Coles to reposition the GroupÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s portfolio and set up both Wesfarmers and Coles for future success

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Wesfarmers to retain 15 per cent of Coles and 50 per cent of flybuys

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Eligible shareholders will receive one Coles share for every Wesfarmers share

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Wesfarmers Board recommends shareholders vote in favour of the demerger of Coles

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ The Independent Expert, Grant Samuel & Associates, has concluded the demerger proposal is in the best interests of Wesfarmers shareholders

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Shareholder vote scheduled for Thursday, 15 November 2018, with demerger to be completed in November 2018, subject to shareholder, court and regulatory approvals

 

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Coles has entered into a Heads of Agreement with Witron Australia, the Australian subsidiary of Witron Logistik + Informatik GmbH, to develop two new automated ambient distribution centres for Coles over a five year period

 

Coles expects to recognise provisions of approximately $130 million to $150 million before tax in the 2019 financial year, relating to redundancies and lease exit costs for a number of existing distribution centres that will be closed over a five year period.

= more trucks on the road.

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WES shareholders have voted overwhelmingly in favour of the historic $20 billion demerger of Coles, to set up the retailer as a stand-alone company for the first time since the 1980s.

 

The move comes at a time of intense competition from new players in the nationÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s grocery sector, which Coles will now face without its parent.

 

At a special meeting in Perth yesterday afternoon, following the Wesfarmers annual general meeting, investors waved goodbye to the supermarket chain they have had complete ownership of since it was bought for $19.3bn on the eve of the global financial crisis in 2007 by then chief executive Richard Goyder.

 

Next Wednesday, Coles shares will start trading on the ASX for the first time since 1987, when it was fused with Myer to become the Coles Myer business.

 

The supermarket retailer will immediately emerge as a top 30 company with annual sales of just under $40bn.

 

Eligible Wesfarmers shareholders will receive one Coles share for every Wesfarmers share they hold, and while Wesfarmers will retain a 15 per cent stake in the supermarket group it is now freed up to focus on other investment opportunities....

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- Wesfarmers has reported a net profit after tax of $4,538 million for the half-year ended 31 December 2018.

 

- This record profit includes post-tax significant items of $3,059 million relating to discontinued operations, Including gains on the demerger of Coles and disposals of Bengalla, Kmart Tyre and Auto Service, and Quadrant Energy which were completed during the half-year.

 

- Net profit after tax from continuing operations increased 10.4 per cent to $1,080 million.

 

- Wesfarmers retained a very strong balance sheet. Net financial debt at the end of the period was $324 million, a decrease of $3,256 million below the balance at 30 June 2018.

 

- Directors have declared a fully-franked ordinary interim dividend of $1.00 per share.

 

- In addition, following successful completion of actions taken to reposition the Groupâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s portfolio, directors have also declared a fully-franked special dividend of $1.00 per share, which will distribute $1,134 million

to shareholders.

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  • 4 weeks later...

from AFI slides

Bunnings: - Australiaâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s no. 1 hardware brand âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ represents 60% of Group EBIT.

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Kmart: Leading discount department store âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ represents 17% of Group EBIT.

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Strong balance sheet post demerger:

- Potential acquisitions

- $2/share potential capital returns if no acquisitions found

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Challenges âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ slowdown in Bunnings sales as housing cycle turns.

At a Magellan Global pesentation recently attended, they reckon Bunnings is the "pre-eminent" Australian company according to their models (and would be in the portfolio if such a company was identified OS

- and also, if WOW does cut back on some of the underperforming Big W stores, this would imply a more rational market for the remainder. Still got the Target conundrum, though

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Wesfarmers has made an indicative bid for rare earths producer Lynas Corp at $2.25 a share, which was a 44.7 per cent premium to Lynas' last close.

 

The offer is subject to a handful of conditions, including due diligence and entry into a scheme of arrangement.

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