Bapcor (BAP) H1 2025 earnings summary

Executive summary

• Pro-forma group revenue for 1H25 was $987.8M, up 0.3% year-over-year, while pro-forma NPAT declined 15.2% to $45.5M due to retail and specialist wholesale underperformance in a tough macroeconomic environment.

• Statutory group revenue was $1,012.4M, down 0.5% year-over-year; statutory NPAT was $40.8M, down 13.0%.

• Trade segment delivered strong results with revenue up 1.9% and EBITDA up 12.3%, while Retail and Specialist Wholesale faced challenging conditions.

• Significant operational simplification, cost savings, and technology investments were key management priorities, including supply chain rationalisation and headcount reduction.

• Net debt reduced by 9.7% to $304.5M since June 2024, with strong cash conversion at 108.5%.

Financial highlights

• Pro-forma NPAT was $45.5M, down 15.2% year-over-year; statutory NPAT was $40.8M, down 13.0%.

• Pro-forma EBITDA was $132.5M, down 7.2% year-over-year; EBITDA margin 13.4%, down 108bps.

• Gross margin percentage increased 10bps to 46.9%; gross margin dollars up 0.5% to $463.2M.

• Cash conversion improved to 108.5% from 62.4% in 1H24; operating cash flow reached $143.7M.

• Interim fully franked dividend of 8.0 cps declared, with a 60% payout ratio.

Outlook and guidance

• Management expects to deliver $20–30M in FY25 cost savings, targeting the upper end of the range, with most benefits weighted to H2.

• Early 2H25 sales up 0.5%, with Trade up 3.7%, offset by continued Retail and Wholesale weakness.

• Continued focus on trade store expansion, retail turnaround, supply chain simplification, and business simplification for long-term growth.

• Strategy update scheduled for late April 2025.