Bapcor (BAP) H2 2024 earnings summary

Executive summary

• FY 2024 saw a statutory loss of AUD 158.3 million due to significant non-cash impairments and restructuring, while pro-forma NPAT was AUD 94.8 million, in line with guidance.

• Group revenue grew 0.8% to AUD 2.04 billion, with Trade and Specialist Wholesale segments growing, Retail declining, and New Zealand flat.

• Management strengthened with new CEO and CFO appointments, and cost base right-sizing actions expected to deliver AUD 20-30 million in FY25 savings.

• The business is focusing on simplification, restructuring, and rationalization to drive value and efficiency.

• Trade segment share maintained, while Retail and Wholesale underperformed due to higher corporate costs and market headwinds.

Financial highlights

• Revenue reached AUD 2,036.9 million, up 0.8% year-over-year, with gross margin at 46.2%, down 45 bps.

• Pro-forma NPAT was AUD 94.8 million, down 24.3% year-over-year; statutory NPAT loss was AUD 158.3 million due to significant items.

• Pro-forma EBIT was AUD 174.9 million, down 14.4% year-over-year.

• Operating cash flow was AUD 206.7 million, down from AUD 320.7 million in FY 2023, mainly due to inventory build-up; cash conversion at 77%.

• Final dividend declared at AUD 0.055 per share, total FY dividend AUD 0.15 per share (54% payout ratio).

Outlook and guidance

• FY 2025 started with revenue up 7.7% in the first five weeks (1% like-for-like), with improvements across all segments.

• Expected cost savings of AUD 20-30 million in FY 2025, skewed to the second half, from headcount reduction and DC rationalization.

• Continued focus on simplification, operational efficiency, and disciplined capital allocation.

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