Bapcor (ASX: BAP) managed to deliver some degree of top-line growth despite the significant impact of lockdowns in the first-half of FY22.
Financial results at a glance:
Revenue of $900m, up 1.9%
Net profit of $61m, down -13.7%
Net profit was in-line with the full-year guidance provided in October
Interim dividend of 10 cents per share, up 11.1%
Bell Potter and Citi were expecting a profit figure of $65m.
Morgans was perhaps a bit more forgiving, forecasting first-half profits of $57.1m and flat revenue growth. The broker said early indications of second-half trading will be key.
Bapcor shares are down -3.9% at 11:20 am AEDT.
Bapcor said business conditions improved as lockdown restrictions were eased around November.
Revenue in the December quarter was up 4.1% compared to the September quarter. Bapcor expects the momentum to continue through to the second half of FY22.
Margins were impacted due to a higher cost base as the business transitioned to a new Victorian distribution centre and supported team members during lockdown (paid pandemic leave, avoided standing team members down).
Bapcor said current margins were at the same level as FY20, and expected to improve as the business comes out of lockdowns.
Leading into today's result, Morgans said that a "44/56% earnings skew [will be] required to meet the guidance statement".
Bapcor said January 2022 revenues are in-line with the previous year, despite a "slow start to the year due to Omicron".
M&A could play a big part in the year ahead, as Bapcor hinted at "further acquisitions in 2022 to supplement organic growth".
Since 31 December 2021, the company has signed 2 acquisitions which have added annualised revenues of cira $50m.
Bapcor concluded its earnings on a weak note, saying it hopes to deliver "pro forma earnings at least at the level of FY21."
Finance Writer & Social Media
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