Profit dips for Australia's Wesfarmers after perfect pandemic storm

Australian retail conglomerate Wesfarmers Ltd said first-half profit slumped and cut its dividend after most of its businesses were hit by successive COVID-19 outbreaks and supply chain upheaval, sending its shares sharply lower.

Normally seen by investors as a strategic advantage, the conglomerate's diversified interests proved a weakness at a time when Australia spent months under lockdown due to the Delta variant, followed by spiralling worker absenteeism as the Omicron strain saw case numbers explode.

The company's star unit which brings 70% of profit, home improvement chain Bunnings, produced a rare profit decline as inflation linked to supply chain blockages pushed up