Autobarn owner Bapcor has unveiled a 72.2 per cent increase in net profit to $43.5 million for the first half of FY18, bolstered by trading from the Hellaby Holdings businesses it acquired last January.
Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 53.8 per cent to $70.2 million excluding the discontinued resources services group and footwear businesses – Hannah’s and Number One shoes – from New Zealand-based Hellaby.
Excluding discontinued operations statutory net profit was up 60 per cent to $40.4 million.
Revenue was up 41.6 per cent to $616.1 million on the prior corresponding period (PCP), with the retail and service segment – including Autobarn, AutoPro, Sprint Auto Parts and Carparts retail stores, as well as Midas and ABS service workshops – reporting a 5.4 per cent increase in sales on the PCP.
The retail and service segment booked same-store sales growth of 1 per cent from franchised stores and 5 per cent from company owned stores, with EBITDA as a percentage of sales decreasing by .6 per cent on higher levels of sales relative to profit from new company-owned stores.
Management is forecasting revenue and profit growth in the second-half which it said will be generated by underlying business performance, optimisation and store network growth.
Bapcor added eight new company-owned Autobarn stores to the network in the first-half, including the conversion of four franchise operations, bringing the total number of company owned stores to 39–or 31 per cent of the total 124 store network as at 31 December.
“The first half of FY18 has delivered a very good result and in line with our expectations. This financial year is a period of consolidation, integrating the ex-Hellaby businesses and working through the many optimisation opportunities,” CEO Darryl Abotomey said.
During the half, Bapcor made good on its promise to divest from its footwear retail operations in New Zealand, which it acquired alongside Hellaby last year.
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