Bapcor posts profit decline amid leadership reshuffle
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The news: Vehicle parts provider Bapcor saw a 15% drop fall in half-year profit compared to a year earlier, as tougher retail trading conditions and higher finance costs dragged earnings.
The numbers: Bapcor recorded first-half NPAT of $46.9 million, down from $55.2 million in the prior corresponding period. EBITDA also shrank 1.7% to $143.8 million year-on-year, despite half-year revenue climbing 1.7% to a record high of $1.02 billion.
The company said its transformation program is expected to deliver a $7 million to $10 million NPAT benefit in the second half of the financial year.
Bapcor slashed its interim dividend 9.5% to 9.5 cents per share.
The context: Bapcor's interim CEO and managing director Mark Bernhard — who took temporary charge of the company earlier this month after the departure of Noel Meehan for personal reasons — said the long-term outlook is positive, bolstered by continued resilience in the trade and wholesale markets.
The owner of 1,100 outlets under brands, such as Autobarn, Autopro and Burson, noted that the retail segment was impacted by lower consumer confidence and discretionary spending in the six months to December 2023, with inflation and higher interest rates raising business costs.
Incoming permanent CEO Paul Dumbrell, a former V8 Supercars driver who ran one of Bapcor's retail divisions before leaving to oversee Metcash’s Total Tools wholesaling business, will start his term on 1 May.
What they said: Bernhard said: "...our trade and wholesale businesses delivered ongoing profitable growth during the first half of FY24. The half-year results were however disappointing due to the macroeconomic headwinds which impacted our retail business".
The source: ASX announcement
