Bapcor (BAP) H1 2025 earnings summary

Executive summary

• Pro-forma NPAT declined 15.2% year-over-year to $45.5M, mainly due to underperformance in retail and specialist wholesale amid higher costs and a tough macroeconomic environment.

• Group pro-forma revenue rose 0.3% to $987.8M, with statutory revenue at $1,012.4M; Trade segment delivered revenue growth of 1.9% and EBITDA growth of 12.3%.

• Specialist Wholesale segment is undergoing restructuring; Retail faced tough trading conditions, while New Zealand showed resilience despite recessionary pressures.

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

• Key management actions included operational simplification, cost savings, technology investments, and the sale of the non-core MTQ business.

Financial highlights

• Pro-forma NPAT was $45.5M, down from $53.7M year-over-year; statutory NPAT was $40.8M, down 13%.

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

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

• Cash conversion improved to 108.5% from 62.4% year-over-year, supporting a 10% reduction in net debt.

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

Outlook and guidance

• Cost savings expected at the top end of the $20–30M range for FY25, with most benefits weighted to H2.

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

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

• Strategic update and further operational reviews to be provided in late April 2025.