Bapcor Ltd (ASX: BAP) shares are sliding in morning trade despite the company’s results for the first half of the 2021 financial year (H1 FY21) showing significant growth. At the time of writing, the Bapcor share price has slumped 3.72% to $7.76.
What did Bapcor report?
The Bapcor share price is failing to lift off this morning despite the company reporting record results for the half-year ending 31 December. The vehicle parts and services provider said revenue grew across all of its business segments.
Revenue from operations increased 25.8% over the prior corresponding period’s $702.5 million to $883.6 million.
Pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $145.6 million increased by 36.5% from H1 FY20.
Pro-forma net profit after tax (NPAT) of $70.2 million was up 54.0%, while statutory NPAT increased 49.7% to $67.7 million.
Bapcor will pay an interim dividend of 9 cents per share (cps), fully franked. That’s up 12.5% from the 8 cps paid in H1 FY20.
Commenting on the results, Bapcor’s CEO Darryl Abotomey said:
The group added 27 new company locations throughout our network resulting in our business now having over 1,100 locations throughout Australia, New Zealand and Thailand…
Significant progress has continued to be made in investments to drive the long-term success of Bapcor. The new distribution warehouse building at Tullamarine in Victoria is nearing practical completion while a new point of sale system has been implemented in Autobarn and a new e-commerce platform will be launched over the next 2 months.
Further investment in digital transformation is underway. Bapcor continues to have avenues to drive the performance of the business including further network growth, realising operational efficiencies and expansion of our own brand product range.
Abotomey said that the company’s performance in January was at a similar level to the first half of the 2021 financial year.
He cited that mean market consensus for Bapcor’s proforma full year NPAT is around $122 million, which “does not appear unreasonable”, dependent on future economic conditions.
Bapcor share price snapshot
The Bapcor share price is up 14.41% over the past 12 months. That compares to a 3% loss on the S&P/ASX 200 Index (ASX: XJO). Year to date, Bapcor shares have fallen 2.3%.
Based on the current Bapcor share price, the company commands a market capitalisation of around $2.7 billion.
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Motley Fool contributor Bernd Struben 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.
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