Automotive parts supplier Bapcor Ltd (ASX: BAP) met guidance today with a financial year 2019 pro-forma net profit of $94.3 million on pro-forma revenue of $1,297 million. The pro-forma profit backing out discontinued operations climbed 11.4% with pro-forma revenue up 6.9% in a respectable result against the backdrop of a softer local economy.
A fully franked final dividend of 9.5 cents per share has been declared taking total FY19 dividends to 17 cents per share on pro forma earnings per share of 33.45 cents, The adjusted EPS and total dividends up 8% and 9.7% respectively on FY18.
Net debt at 30 June 2019 was $336.3 million, an increase of $47 million compared to June 2018. It now stands at 2.04x pro forma trailing EBITDA of $164.6 million, with the company blaming the increase partly on the investment in the Commercial Truck Parts Group on 30 November 2018.
Over the year the company added 59 new branches to take the total to over 950 stores and reported that its Thailand expansion is showing "positive signs".
Overall the major segments of Burson Trade, Bapcor New Zealand and Specialist Wholesale all recorded solid growth.
Since FY 2015 Bapcor has now delivered compound annual growth rates in earnings and dividends per share of 25% and 18% respectively, which is an impressive result and due to a mix of organic and acquisitive growth.
Outlook
The group is also positive on FY 2020 although growth is slowing as the business grows larger.
For FY 2020 it is expecting to grow its pro-forma NPAT to grow by mid to high single digits. Moreover, as it expects depreciation costs to rise due to increased technology investments in FY 2020 it's forecasting EBITDA (operating income) to come in around 2% higher than the forecast pro forma net profit growth. In other words it could post double-digit EBITDA growth in FY 2020.
As a result the shares are 3.6% higher to $6.53 in morning trade. Elsewhere shares in online automobile trader Carsales.com Ltd (ASX: CAR) are 7% higher on a better-than-expected result.
