Bapcor (ASX:BAP) delivers record revenue, earnings; lifts dividend

Highlights:

• Citing a successful year, Bapcor has marked a rise of 4.6% in its revenue and 4.3% in earnings.
• The company has announced interim dividend of 11.5 cents per share, up 4.5% compared to FY21 final dividend.
• Bapcor shares reacted positively to the results, gaining on ASX.

With its core business in the automotive aftermarket, Bapcor Limited (ASX:BAP), provider of vehicle parts, accessories, equipment, services and solutions, on Wednesday (August 17), shared the financial results for the financial year ended 30 June 2022.  

Overall, it was a successful year for Bapcor as the company has delivered a record revenue and NPAT (Net profit after tax), in line with market guidance. As per the company, the demand drivers in the automotive market are positive and supporting the business.

At 11:00 AM AEST, BAP shares were spotted trading at AU$6.850 apiece, up 1.181%.

Key highlights from the results:

• Bapcor has delivered a record statutory NPAT of AU$125.8 million, up 5.9% year-on-year and 41.2% over a two-year period.
• Bapcor delivered on market guidance with FY22 Pro Forma NPAT of AU$131.6 million.
• Revenue growth of 4.6% year-on-year, and 25.9% over a two-year period. Revenue stands at AU$1,841.9 million against AU$1,761.7 million in FY2021.
• EBITDA proforma saw an increase of 4.3%.
• Full year result supported by stronger second half, offsetting impact of 1H22 Covid lockdowns.
• Increased final dividend of 11.5cps, bringing dividends for FY22 to 21.5cps, up 7.5%, with a payout ratio of 55.4%.
• Bapcor’s balance sheet stands strong with a leverage ratio of 1.2x as of 30 June 2022, notwithstanding net debt rising from AU$164.1 million to AU$262.0 million.

In its results statement, Bapcor stated that supply chain disturbances across the world have impacted FY22 cash conversion and increased working capital levels. However, the company continued with network expansion. During the last year, the company had expanded its network by opening 31 stores.

Outlook shared by Bapcor

Bapcor stated it is working towards “Better than Before” initiative and operationally, the company anticipates a solid underlying performance in FY23.  

Share price performance of Bapcor

In last one month, Bapcor  shares have gained 4.28%. However, in last one year, the stock has plunged  15.70% and on year-to-date basis, the stock has shed off 4.48%. In a tenure of last five years, the stock has gained 23.55% (as of 11:05 AM AEST, 17 August 2022).