Bapcor margin dips for first time since listing

Challenging trading conditions wiped out margin in the first half of FY20 despite a 10 per cent increase in revenue, Bapcor told the ASX on Wednesday.

The after-market auto parts, accessories and services company posted record results for the six months to December 31, 2019, with revenue and profit growing across every segment of the business.

For the first time since listing in 2014, however, Bapcor’s EBITDA margin declined by 0.6 percentage points.

“[This] mainly reflects the competitive environment, especially [in] the trade businesses in Australia and New Zealand, as well as the impact of the depreciation of the Australia and New Zealand currencies and the softer underlying economic conditions,” Darryl Abotomey, Bapcor CEO and MD, said in a statement.

Revenue was up 10.4 per cent to a record A$702.5 million. Pro-forma EBITDA excluding the accounting change relating to leases, AASB 16, was up 4.6 per cent to a record A$79.4 million. Including the change, they were up $27.2 million to $106.7 million.

Pro-forma NPAT excluding AASB 16 was up 5.1 per cent to A$45.3 million. Including AASB 15, it increased A$300,000 to A$45.6 million. Statutory NPAT, which includes a A$4.1 million boost relating to a one-off adjustment of a deferred settlement payment for a previous acquisition, was down 0.7 per cent.

Pro-forma earnings per share excluding AASB 16 were up 4 per cent to 15.94 cents per share. Statutory earnings per share, which include the same one-off adjustment, were down 1.8 per cent to 15.91 cents per share.


The company declared a fully franked interim dividend of 8 cents per share, up 6.7 per cent from H1 FY19.

In New Zealand, revenue increased by 5.7 per cent, largely due to new stores as same-store sales was flat. EBITDA increased 1.4 per cent, but margin was down by 0.6 percentage points.

The company completed a new 6000sqm distribution centre in Auckland in the period, which will bring together its specialist wholesale and equipment businesses under one roof, and BNT expanded its store network by two during the half to 72 stores.

Bapcor added 35 new stores or branches to its network in the period overall, and now has over 1000 locations across Australia, New Zealand and Thailand.

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