Bapcor swings to full-year loss, shares lift
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The news: Automotive parts supplier Bapcor has reported a full-year loss after asset impairments amid difficult trading conditions, but flagged progress in cost-cutting, sending its shares higher.
The numbers: It reported a net loss of $158.3 million, compared to a $106.4 million profit a year ago, after taking previously flagged writedowns of $253.1 million in its retail segment.
Underlying profit, excluding the significant items, came in at $94.8 million, within its guidance range, while revenue was up 0.8% to $2 billion.
It will pay a final dividend of 5.5 cents a share, down from 11.5 cents a year ago.
Bapcor shares were up nearly 3% to $5.09 in early trading.
The context: The company, which operates a network of 1100 stores across the Autobarn, Autopro and Burson brands, flagged the impairments in May amid challenging trading conditions in its Retail business due to weak consumer spending.
Interim CEO Mark Bernhard said on Wednesday the company has since taken decisive action to right-size the cost base and reduce operational complexity, with the actions expected to deliver $20 million to $30 million in savings in FY25.
It said total revenue for the first 5 weeks of the current fiscal was up 7.7% and up 1% on a like-for-like basis.
Bapcor, which last month rejected a takeover bid by Bain Capital, will see new CEO Angus McKay start in his role from 22 August.
The source: ASX announcement
