The Bapcor Ltd (ASX: BAP) share price is roaring higher after the company released its earnings for the first half of the financial year this morning.
Shares in the S&P/ASX 200 Index (ASX: XJO) automotive spare parts and accessories provider are currently trading 5.15% higher at $6.53.
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Bapcor share price leaps as revenue reaches $1b
Here are the key takeaways from Bapcor's latest earnings release:
- $1 billion of revenue – a 11.2% jump on the prior comparable period (pcp) and a new record
- $62 million of pro-forma net profit after tax (NPAT) – up 2.3%
- $146.3 million of pro-forma earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 6.7% jump
- Pro-forma earnings per share (EPS) came to 18.3 cents
- Interim dividend boosted 5% to 10.5 cents per share
The company's specialist wholesale segment brought in the lion's share of revenue last half, at 36%, with trade close behind, responsible for 35% of revenue. Retail brought in 21% of its revenues while its New Zealand business was behind the other 8%.
Its positive financial result came despite overall margins being impacted by challenges in retail, economic weakness in New Zealand, and higher supply chain costs.
Bapcor ended the period with a $329 million net debt position.
What else happened last half?
It's been a busy period for Bapcor.
The company boasts 31 more company-owned locations than it did in the first half of financial year 2022.
It has also successfully transitioned its Bearing Wholesales and Federal Batteries brands into its Victorian distribution centre last half and is on track for practical completion of its Queensland distribution centre in the current half.
Finally, its Better than Before transformation moved from planning into implementation and execution and remains on schedule.
What did management say?
Bapcor CEO and managing director Noel Meehan commented on the news driving the company's share price higher today, saying:
Our diversified model has demonstrated the resilience of Bapcor's business, and despite input cost pressure we have had strong performances of our trade and wholesale operations that allowed us to mitigate shorter-term headwinds in supply chain, retail and New Zealand.
What's next?
The company experienced a solid start to the year in January, with trading conditions unchanged.
It believes the second half of this fiscal year will bring slight improvements in trading, subject to market conditions. It also notes more progress is needed to further reduce elevated inventory levels.
Finally, it still expects to realise the initial capital expenditure for its transformation plan next half. The plan aims to provide a net earnings before tax and interest (EBIT) benefit of at least $100 million and return at least 12% of invested capital by financial year 2025.
Bapcor share price snapshot
Today's gain has put the Bapcor share price back into the year-to-date green.
The stock is currently 1% higher than it was at the start of 2023. Though, it has fallen 7% since this time last year.
For comparison, the ASX 200 has gained 7% year to date and 2% over the last 12 months.
