Australian automotive parts company Bapcor has posted net profit after tax of A$45.3 million (NZ$47.2m), up 5.1% for its half-year result.
Revenue was up 10.4% to A$702.5m (NZ$732m) and earnings before interest, tax, depreciation and amortisation (EBITDA) up 4.6% to A$79.4m (NZ$82.8m).
Bapcor chief executive and managing director Darryl Abotomey says the company is focused on adding branches and also growing its commercial parts business.
The business added 35 new branches to its network during the half-year period and now has over 1000 locations throughout Australia, New Zealand and Thailand.
It also expanded into the heavy commercial truck parts sector with the acquisition of Truckline in December 2019.
“Bapcor now has 38 branches supplying truck parts across both the light and heavy truck sectors making it one of the largest distributors in Australia. This sector provides another platform of growth for Bapcor and places us as the only supplier of replacement parts and accessories for all segments of on road vehicles,” Abotomey says.
A new 6000 square meter distribution centre has been completed in Auckland that will bring together the NZ specialist wholesale and equipment businesses under one roof. BNT expanded its store network by two during the half-year to 72 stores.
“Bapcor New Zealand performed solidly in a soft economy where both volumes and price were challenged. Revenue increased by 5.7% largely due to new stores as same store sales growth was flat. EBITDA increased 1.4% and EBITDA margin declined by 0.6 percentage points compared to H1 FY19,” he says.
The company is expanding its distribution centre footprint in Victoria and has started construction of a 50,000 square meter facility which is expected to be complete by 2021.
“Bapcor has made good progress in the challenging operating environment over the last six months demonstrating the resilience of the business, and also the many opportunities that still exist for Bapcor.
“Areas such as the truck businesses, Asian operations, ‘own brand’ expansion and the [distribution centre] consolidation are all examples of what will drive growth in the future, underpinned by our very successful and still growing business portfolio that is focussed on the market for vehicle parts, accessories, equipment, service and solutions,” Abotomey says.
