Bapcor (BAP) H2 2024 earnings summary

Executive summary

• Statutory loss of $158.3M for FY24, mainly due to $253.1M in non-cash impairments and write-downs in Retail, compared to a profit in FY23.

• Pro-forma NPAT was $94.8M, down 24.3% year-over-year and in line with guidance.

• Group revenue grew 0.8% to $2.04B, with growth in Trade and Specialist Wholesale offset by Retail decline and flat New Zealand performance.

• Management actions included cost base reduction, operational simplification, and scaling back the BTB transformation program.

• Leadership transition underway, with new CEO and CFO appointments to drive future performance.

Financial highlights

• Revenue: $2,036.9M in FY24, up 0.8% year-over-year.

• Pro-forma EBIT: $174.9M, down 14.4% year-over-year; pro-forma EBITDA: $268.4M, down 10.1%.

• Gross margin: 46.2%, down 45bps; gross margin dollars fell 0.2% to $942M.

• Statutory NPAT: $(158.3)M, reflecting significant items of $253.1M–$296.8M.

• Dividend per share: 15.0c, payout ratio 54% of pro-forma NPAT.

Outlook and guidance

• $20–30M in cost savings expected in FY25 from restructuring and operational changes.

• Early FY25 trading strong: group revenue up 7.7% and like-for-like up 1.0% in first five weeks.

• Restructuring spend expected to pay back within 2–3 years.

• Focus on core business, network expansion in Trade, and exit of non-core businesses.