Bapcor eyes full year profit rise after laying foundations

First-half result seen a precursor to second-half acceleration

Bapcor eyes full year profit rise after laying foundations
Bapcor’s parts business is still rolling

Continuing positive demand, not least from the commercial vehicle market, has given Bapcor a first half financial lift.

Bapcor, the listed vehicle parts firm that recently moved into small truck services, has seen a 4.1 per cent rise in net interim profits, compared with the previous first half, to $45.5 million.

The rise came on the back of a 3.2 per cent boost in first half revenues to $636 million.

The performance and developments has the company bullish about the likely full-year result, putting it at 9 per cent above last year’s mark, itself a 32 per cent rise in net profits to $86.5 million.

The company’s Trade segment, which includes Burson Auto Parts and Precision Automotive Equipment business units and has a commercial vehicles exposure, saw revenues up 4.8 per cent to $257.4 million, with gross earnings up 8.2 per cent to $36.9 million.

"During H1 FY19, Burson Auto Parts continued to expand its store network with the number of stores increasing from 170 at 30 June 2018 to 178 at 31 December 2018," Bapcor reports.

"The increase of 8 stores consisted of 4 greenfield store developments and 4 acquisitions. The average cost per new store including inventory was $688,000."

Read about Bapcor’s commercial vehicles market inroad, here

The Specialist Wholesale segment that also deals in truck parts, had revenue growth of 7.8 per cent to $196.3 million leading to an 11.4 per cent gross profit rise to $20.5 million.

"The Specialist Wholesale segment consists of operations that specialise in automotive aftermarket wholesale and include AAD, Bearing Wholesalers, Opposite Lock, Baxters, MTQ, Roadsafe, JAS Oceania, Premier Auto Trade, Federal Batteries, Diesel Distributors, AADi as well as the Commercial Truck Parts group that commenced with the acquisitions of Don Kyatt Spare Parts (Qld), He Knows Truck Parts, I Know Parts and Wrecking, Commercial Parts and Commercial Spares at the end of November 2018," Bapcor says.

Though it had no impact on the interim results, the company completed the $2.5 million acquisition of Toperformance Products’ business. Toperformance is the exclusive distributor of Koni shock absorbers for truck, bus, vehicle, 4WD and motorsport applications in Australia," Bapcor notes.



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