Bapcor Limited (ASX:BAP) Reports 2025 Half-Year Financial Results
Financial Performance
Bapcor Limited reported a pro-forma group revenue of $987.8 million for the half-year ended 31 December 2024, marking a 0.3% increase. Pro-forma NPAT decreased by 15.2% to $45.5 million compared to the previous corresponding period. Trade revenue grew by 1.9% with Trade EBITDA rising 12.3%, offset by weaker performance in the Retail and Specialist Wholesale segments. Statutory group revenue declined by 0.5% to $1,012.4 million, and statutory NPAT fell by 13.0% to $40.8 million.
Cost Management and Debt Reduction
Bapcor achieved a pro-forma EBITDA of $132.5 million, a 7.2% decrease from the previous period but a 6.2% increase compared to the second half of 2024 due to cost reduction initiatives. The company expects to reach the upper end of its $20-$30 million cost savings target for FY25. Cash conversion improved significantly to 108.5%, and net debt was reduced by 9.7% to $304.5 million.
Dividend Declaration
The Board has declared an interim fully franked dividend of 8.0 cents per share, representing a payout ratio of 60% of pro-forma NPAT, at the top end of the company’s payout range.
Strategic Initiatives
Bapcor reports that a strategic update has been scheduled for the week commencing 28 April 2025. The company has made progress in headcount reduction, DC rationalisation, network expansion, and IT upgrades. The operational review of its Retail and Wholesale businesses is ongoing.
Executive Comments
Executive Chair and CEO Mr Angus McKay stated, “In my first six months we have been resolute in delivering on the actions previously outlined to right-size the cost base, enhance operational efficiencies and set us up to grow. We made significant progress during the half, with the benefits of these initiatives starting to be realised, as evidenced by our core Trade business growing EBITDA by 12.3%, however trading conditions remain challenging impacting our Retail, New Zealand and Specialist Wholesale divisions. We expect to deliver cost savings towards the top end of our $20-30M target range in FY25 which will be second half weighted. We have been highly disciplined in how we manage working capital and our strong cash conversion has meant we were able to pay down debt, while investing to grow our Trade network and make significant strategic improvements in IT. There is a lot more to do and we are taking action to further simplify the business and strengthen our core operations while assessing how to optimise our underperforming segments.”
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