Insights

The Bapcor (ASX:BAP) share price is rising after FY21 earnings on Wednesday

Bapcor shares are rising after the auto parts business reported.
The post The Bapcor (ASX:BAP) share price is rising after FY21 earnings on Wednesday appeared first on The Motley Fool Australia. –

The Bapcor Ltd (ASX: BAP) share price is rising after the auto parts company released its FY21 result to the market.

What was in the Bapcor FY21 result?

The company reported that it saw growth across the business in multiple areas.

Bapcor’s total revenue grew 20.4% to $1.76 billion, with pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) going up by 28.8% to $279.5 million.

Pro forma earnings before interest and tax (EBIT) grew 39% to $200.8 million and net profit increased 50% to $118.8 million. However, pro forma earnings per share (EPS) ‘only’ grew by 26.8% to 38.3 cents.

Division breakdown

A large amount of the profit contribution comes from the trade segment (namely Burson Auto Parts), where revenue grew 15.5% and EBITDA increased 19%. Burson added another 14 stores to reach 200 stores across Australia.

Specialist Wholesale revenue grew 26.8% and EBITDA increased 42.2%. Excluding acquisitions, such as Truckline, revenue grew 17.3% and EBITDA rose 32%.

Retail (including Autobarn) saw revenue rise 26.1% and EBITDA increased 20.1%.

The company is expanding into Asia. It currently has six operating locations in the Bangkok region of Thailand, with the seventh ready to open (but delayed until COVID restrictions ease). It also bought a 25% stake of Tye Soon, which has around 60 locations across Asia. COVID has caused a lot of volatility for the Bapcor share price since February 2020.

Bapcor has paused Burson Thailand growth as it continues to recover to pre-COVID levels.

Bigger dividend payout for shareholders

Bapcor’s dividend continues to grow at a double digit pace. The board decided on a 15.8% increase for the final dividend to 11 cents per share.

This meant the full year dividend had been increased by 14.3% to 20 cents per share.

The full year payout represented a dividend payout ratio of 52% of pro forma EPS.

FY22 growth and expectations

Bapcor announced that significant progress has continued to be made in investments to drive the long-term success of the business, which could also influence the Bapcor share price.

It has completed its new distribution warehouse building at Tullamarine in Victoria, with retail having successfully transferred into the facility. A new distribution centre has been approved for Queensland.

Bapcor continues to invest in its digital transformation. The new Autobarn e-commerce platform is being implemented, along with the new business to business platforms in Australia, Thailand and New Zealand.

Management believe there are further opportunities to drive the performance of the business including further network growth, realising operational efficiencies and expansion of its own brand product range.

However, at the moment its goal is to try to achieve pro forma earnings of at least the level of FY21, but it depends on the extent on lockdowns and other government restrictions.

The post The Bapcor (ASX:BAP) share price is rising after FY21 earnings on Wednesday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bapcor right now?

Before you consider Bapcor, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bapcor wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Bapcor (ASX:BAP) share price on watch after strong FY21 result but soft guidance
2 rapidly growing ASX shares

2 top ASX growth shares that might be worth buying

2 quality ASX growth shares analysts rate as buys

3 reasons why the Bapcor (ASX:BAP) share price could be a clever buy

Motley Fool contributor Tristan Harrison 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 owns shares of and has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!