Shares in automotive parts supplier Bapcor jumped nearly 7% yesterday after it reported a record net profit of $94.3 million on a 4.8% lift in revenue to $1,297 million for the 2018-19 year.
Directors declared a fully franked final dividend of 9.5 cents a share, taking total dividends for the year to June to 17 cents a share, up from 15 cents for the 2017-18.
Bapcor said it was looking to do as well in 2019-20 and expecting to grow its after-tax (statutory) profit by high single digits.
Net debt at June 2019 30 was $336.3 million, an increase of $47 million compared to June 2018. Bapcor said it 59 new branches to take the total to over 950 stores and said its Thailand expansion is showing “positive signs”.
Overall the major segments of Burson Trade, Bapcor New Zealand and Specialist Wholesale all recorded solid growth.
Bapcor’s CEO Darryl Abotomey said in yesterday’s release the respectable result reflected “the resilience of our businesses despite experiencing challenging market conditions.”
“Solid growth was achieved in our Trade and Specialist Wholesale businesses in both Australia and New Zealand, with these businesses making up over 80% of Bapcor’s business. Growth in these businesses was experienced both in top-line revenue as well as margin and earnings expansion.”
“The Burson Trade segment, consisting of Burson Auto Parts and Precision Automotive Equipment, grew revenue by 4.6% with same-store sales up 2.2% (up 2.5% in H2 FY19). EBITDA grew by 8.5% and EBITDA margin was up 50 basis points compared to FY18. The Burson store network expanded to 181 stores nationwide, an increase of 11 stores in the year.
“Bapcor New Zealand continued to perform solidly. Excluding the impact of the divestment of TRS, in FY19 revenue increased by 7.4% and EBITDA increased by 13.8%.
“Bapcor New Zealand’s largest business, the BNT trade business, achieved same-store sales growth of 5.3% (5.9% in H2 FY19). In addition, EBITDA margin grew by 80 basis points compared to FY18. BNT expanded its store network by 4 during the year to 58 stores.
“The Retail segment makes up less than 20% of Bapcor’s revenue and earnings and consists of Autobarn, AutoPro and Sprint Auto Parts stores, as well as Midas and ABS service workshops. Revenue for FY19 increased by 6.8% compared to FY18 largely due to an increase in the number of company-owned stores as well as underlying company-owned store growth.
“The Autobarn store network consists of 134 stores at year-end, up by 6 compared to June 2018. The number of Autobarn company-owned stores over the same period grew from 48 to 66 and now represent almost half of the Autobarn network.
“Same-store sales in Autobarn company-owned stores was 5% (5.7% in H2 FY19) with franchise store same-store sales growth being flat. EBITDA decreased by 6.0% compared to FY18 reflecting the impact of the significant number of new company stores that are loss-making in their initial phase, as well as the challenging retail environment.
“We have also made solid inroads into digital with Burson trade now supplying over $80 million of its sales via its B2B system, and Autobarn’s on-line sales trebled through its click and collect combined with the introduction of its click and deliver,” Mr. Abotomey said in yesterday’s release.
Investors liked the results and forecast and pushed the shares up 7% to $6.75.
