Bapcor share price resilient following record half year revenues

ASX 200 investors are mulling over Bapcor's half year results today.

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The Bapcor Ltd (ASX: BAP) share price is in the green in early trade today.

Shares in the S&P/ASX 200 Index (ASX: XJO) auto parts company closed yesterday trading for $6.02. In morning trade on Friday, shares are swapping hands for $6.13 apiece, up 1.7%.

For some context, the ASX 200 is up 0.5% at this same time.

This follows the release of Bapcor's half-year results for the six months ending 31 December 1H FY 2024.

Read on for the highlights.

Bapcor share price tracks revenues higher

  • Record half-year revenue of $1.02 billion, up 1.7% year on year
  • Pro-forma earnings before interest, taxes, depreciation and amortisation (EBITDA) of $143.8 million, down 1.7% from 1H FY 2023
  • Pro forma net profit after tax (NPAT) of $54.2 million, down 12.6% year on year
  • Fully franked interim dividend of 9.5 cents per share, down from 10.5 cents per share

What else happened during the first half for Bapcor?

Bapcor attributed its record half-year revenue to strong performance from its Trade & Wholesale segments.

However, the Bapcor share price could find itself under some pressure today, with earnings and profits down from 1H FY 2023. Management noted retail trading conditions were tougher than they were a year ago as inflation remains a concern. And finance costs were up amid rising interest rates.

As at 31 December, the company had a net debt of $332.7 million and a leverage ratio of 1.51 times. That's up modestly from the $329.1 million net debt and 1.45 times leverage ratio a year earlier.

What did management say?

Commenting on the results lifting the Bapcor share price in early trade today, interim CEO Mark Bernhard said:

In 1H 2024 we have implemented actions to improve our operational performance, and also continued to execute our Better than Before transformation program to deliver longer-term growth. Better than Before is expected to deliver a $7 million to $10 million pro forma NPAT benefit in 2H 2024.

Bernhard also gave a nod to incoming CEO Paul Dumbrell, who takes the reins in May.

"While we remain confident in the overall program, we will naturally be reassessing the timing and prioritisation around its longer-term goals once our new CEO Paul Dumbrell starts," he said.

"Paul brings a wealth of knowledge and experience within both our industry and the Bapcor business itself, and we look forward to having him on board in May."

What's next?

Looking at what could impact the Bapcor share price in the months ahead, the company noted that market conditions remain uncertain.

However, Bapcor expects pro-forma NPAT in the second half to benefit $7 million to $10 million from Better than Before, along with some $2 million run rate benefits from the second quarter improvement plans.

 "We have had a solid start into 2H24, and together with the targeted benefits from both our improvement actions and our transformation program, this is providing us with confidence going into 2H24," Bernhard said.

Bapcor share price snapshot

The Bapcor share price has yet to fully recover from its mid-October plunge.

Shares in the ASX 200 auto parts company remain down 9% over 12 months, though that doesn't include the two dividend payments.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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