Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Bapcor (ASX:BAP) share price races ahead on solid FY23 result

The Bapcor Ltd (ASX: BAP) share price has risen 6% after reporting its FY23 result to investors.

Bapcor has a number of automotive parts businesses including Autobarn, Autopro, Midas, ABS, Shock Shop, Battery Town, Burson Auto Parts, BNT, Truckline and WANO.

FY23 result

Here are some of the highlights from the report for the 12 months to June 2023:

The business boasted that the operating margins lifted in all of its trade and wholesale segments in the second half of FY23 compared to the first half of FY23, though the retail segment faced some headwinds because of the economic environment.

Explaining why revenue rose but profit fell, Bapcor said the following about its margins:

Year on year temporary margin compression due to input cost inflation, capability build and higher interest costs

Despite the difficulties, Bapcor was pleased that its diversified business model displayed “continued resilience”.

It worked on its balance sheet and capital efficiency during the year, with a $50 million reduction in inventory, which helped the company achieve a cash conversion of 145.4% in the second half of FY23.

The business achieved practical completion of its Queensland distribution centre in the second half of FY23, while continuing to grow its network of operating locations, and increasing the proportion of on brand sales across all of its segments.

Bapcor is working on its Better than Before transformation, which has certain targets for FY25 including a net benefit of at least $100 million of earnings before interest and tax (EBIT) as well as an increase in the average return on invested capital (ROIC) to more than 12%.

Outlook for the Bapcor share price

In FY24, the business is expecting a solid underlying performance, with solid (but slowing) demand and growth for the trade segment, and the specialist wholesale agreement can benefit from growth and acquisition opportunities in the truck market.

Underlying demand in New Zealand is expected to improve, but the retail segment faces ongoing challenging market conditions.

Bapcor is a fairly defensive business, though it does have quite sizeable retail operations. If it can handle the steady transition to electric vehicles, then I believe Bapcor has a very pleasing future ahead, particularly if it can grow its Asian Burson operations to meaningful scale.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content