Bapcor Drives Dividend, Profits Higher
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Bapcor shareholders will get a substantially higher dividend after another solid interim result for Australia’s leading auto parts provider (and main rival to Super Group’s Super Cheap chain).
Bapcor board boosted the dividend by 27.3% to seven cents per share, which is the best bit of guidance for the rest of the year.
Bapcor CEO, Mr Darryl Abotomey said “the first half of FY18 has delivered a very good result and in line with our expectations. This financial year is a period of consolidation, integrating the ex-Hellaby businesses and working through the many optimisation opportunities.”
The higher result came despite a flat result for its Burson and Autobarn chains. Revenue increased by 5.4% but EBITDA was flat at $14.2 million and the EBITDA margin dipped to 11.5% from 12.1%. Management said that the EBITDA was flat because of the high ratio of stores in their first or second year of operation.
The company reported ‘pro-forma’, ‘continuing’ and ‘including discontinuing’ results, mainly due to its acquisition of New Zealand’s Hellaby’s business.
Revenue from continuing operations revenue jumped 41.6% to $616.1 million, with the gross margin growing to 45.6% from 45% last year.
Continuing operations pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 42.8% to $70.2 million and the EBITDA margin increased to 11.4% from 11.3%.
Continuing operations net profit after tax (NPAT) was $40.4 million, up 45.2% increase from last year’s continuing operations pro-forma after tax figure.
A solid performance by Burson Trade, Bapcor’s core business saw revenue grow 6.6% and EBITDA grew by 8.7%. Same store sale growth was a solid 3.4%. It increased its store count by three during the half-year, ending to 163 stores.
The company’s specialist wholesale business reported a 25.4% jump in revenue grew by 25.4% as same store sales rose 5%.
In the next report the ex-Hellaby and Bapcor NZ specialist wholesale subsidiaries will form part of this segment.
Bapcor New Zealand delivered revenue growth of 7.2% and EBITDA growth of 32.2%.
Bapcor said that Trade NZ grew same store sales by 8.5% after it expanded the range and optimised the organisation (ie cut store numbers).
Bapcor said its first Asian store is on course to be opened by May and management are targeting at least five stores in 2018.
Bapcor re-affirmed that it is on target for 30% continuing operations pro-forma after tax next profit for the year to June.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.