“The Anko product is now starting to resonate with higher income families and customers,” he added.
Scott also criticised the Productivity Commission’s proposal of a 5 per cent tax on all businesses as being anticompetitive for local companies already struggling to compete with the likes of Temu, Shein and Amazon.
Pointing out that Australian corporations already paid high taxes, Scott said they needed a “level playing field”.
“We’re a bit nervous about talk of the potential for a cashflow tax for big Australian businesses. All that will do will be harm some of our national champions that are going to be the real drivers of value and productivity.”
Last month, the Productivity Commission proposed slashing the company tax rate to 20 per cent for small and medium businesses as well as a universal 5 per cent tax on the cashflow of all businesses.
Wesfarmers pays 30 per cent in company tax, but Scott that said once payroll tax and other state and government charges were factored in, the actual tax rate for the $103.5 billion giant came to 38 per cent.
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“Any changes to the tax system that look to increase the tax burden on Australia’s biggest companies would really erode the competitiveness of Australian businesses,” said Scott, who called the proposal unfair.
The competitors “keeping us awake at night” aren’t local rivals but global players that operate in markets with fewer regulatory and financial burdens, he added.
Scott has long advocated for lower taxes on Australian corporate giants, including the removal of the 6.85 per cent payroll tax in Victoria.
Wesfarmers’ net profits (excluding the windfall from the $770 million sale of Coregas) rose 3.8 per cent to $2.65 billion. The company will pay a fully franked final dividend of $1.11 per share, which brings total fully franked dividends to $2.06 per share for the year.
Wesfarmers has also proposed a $1.7 billion capital management initiative to distribute $1.50 per share, subject to ATO approval.
Despite the generous dividend payout for investors, Wesfarmers’ share price, which initially rose at the beginning of Thursday’s trading session, was 0.2 per cent lower in late trading.
Wesfarmers chairman Michael Chaney, who signalled in 2023 that he would retire in October 2026, will be succeeded by Ken MacKenzie, the former chairman of BHP and a former CEO of Amcor.
WesCEF, the chemicals, energy and fertiliser division, was the highest-growing division at 7.8 per cent to $2.9 billion. The retail giant also operates Priceline and new beauty chain Atomica through its Wesfarmers Health division, which rose 5.5 per ent to $5.9 billion. However, its safety products, industrial and corporate workwear, and industrial and medical gases business declined 1.2 per cent.
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The retail giant will conduct a “very detailed review” on Atomica’s six stores before committing to rolling out more. “It’s still very early days, but we do see them as being profitable models,” Scott said of the Atomica stores.
“The accessible pricing, a price range around $20-$40 [is] really appealing to customers. Some of the more specialty beauty outfits operate generally above that $40 category. So we’ve been able to come up with an offer that appeals to a broader cross-section of people.”
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