Bapcor Limited (ASX: BAP) is a leading provider of automotive aftermarket parts, accessories, automotive equipment and services in Australasia region. The company has recently released its half-year results for FY 2019. The company’s Statutory revenue from continuing operations for H1 FY19 increased by 3.2% to $636.13 million as compared to H1 FY18. For the same period, the company’s statutory net profit after tax from continuing operations increased by 12.6% to $45.49 million as compared to the previous corresponding period (pcp). On a Proforma Basis, the Net profit after tax from continuing operations increased by 6.6% to $43.078 million.
While commenting on the half-year results, Bapcor’s CEO & Managing Director Mr. Darryl Abotomey told that the company has delivered its biggest ever first-half result in revenue, earnings and EPS despite facing challenging market conditions. He further told that the company has achieved good profit growth across its Trade and Specialist Wholesale businesses in both Australia and New Zealand.
The Board has declared an interim fully franked dividend of 7.5 cents per share which 7.1% higher than pcp. The record date for the interim dividend is 28 February 2019 and Payment date is 12 April 2019.
The company is currently operating a Dividend Reinvestment Plan (DRP), which provides shareholders with the opportunity to utilize all or part of their dividends to purchase shares in the Company. The DRP will be in operation for the 2019 interim dividend. In September 2018, Bapcor issued 830,414 shares to participating shareholders under its Dividend Reinvestment Plan, in respect of the FY18 final dividend. As at 31 December 2018, the Net debt was $350.9 million which represents a leverage ratio of 2.1x.
The trade segment of the company currently includes Burson Auto Parts and Precision Automotive Equipment business units. The trade segment reported revenue growth of 4.8% and EBITDA growth of 8.2% in H1 FY19 as compared to pcp.
The Specialist Wholesale segment of the company reported revenue growth of 7.8% and EBITDA growth of 11.4% in H1 FY19 as compared to pcp. During the half-year, inventory holdings in the Specialist Wholesale segment increased by $17.1M (excluding acquisitions) due to the introduction of new product ranges in air conditioning, batteries and other new products and cyclical purchasing.
The Retail & Service segment of the company includes the Autobarn, Autopro and Sprint Auto Parts retail store brands as well as the Midas and ABS workshop service brands. The revenue from the Retail & Service segment increased by 8.8% in H1 FY19 as compared to pcp. During the half year period, the company has increased the number of company-owned Autobarn stores through greenfield Autobarn stores and some select conversion of franchise stores to company-owned stores.
Recently in January 2019, the company acquired the business of Toperformance Products for the consideration of $2.5 million.
In the past six months, the share price of the company decreased by 8.81 percent as on 12 February 2019 and trading at a PE multiple of 18.94x. BAP’s shares traded at $5.805 (-9.579% intraday) with a market capitalization of circa $1.81 billion as on 13 February 2019 (AEST 1:57 PM).
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