- Car parts specialist Bapcor (BAP) hit an all-time high share price today after a strong trading update for the first quarter of the 2021 financial year
- The company said COVID-19 has actually helped business as more people turn to domestic tourism and keep away from public transport
- As such, even with renewed lockdowns in Victoria and Auckland during the quarter, Bapcor’s revenue increased by 27 per cent on the same time last year
- This result was largely supported by a 47 per cent boost to retail revenue as the company’s Autobarn business grew same-store sales by 36 per cent
- However, CEO and Managing Director Darryl Abotomy said there is still too much economic uncertainty for the company to give and earnings forecast
- Nevertheless, shares in Bapco surged 3.15 per cent today to close at a record high of $7.85 each
Car parts specialist Bapcor (BAP) hit an all-time high share price today after a strong trading update for the first quarter of the 2021 financial year.
Back in July, the company said the year was starting off strong despite COVID-19 headwinds, and it seems the rest of the quarter tracked along nicely.
The company said while renewed lockdowns in Victoria and Auckland had a negative impact on operations in these areas, all up the business continued to perform “extremely well” for the first three months of the financial year.
All up, group revenue increase by 27 per cent compared to the same time period last year.
Bapcor’s Burson business saw a revenue bump of 10 per cent compared to this time last year, with same-store sales up 7.7 per cent. When not counting Victoria, same-store sales for Burson were up 17 per cent.
New Zealand trade saw revenue grow by six per cent and same-store sales up four per cent on last year. Retail sales revenue was up a whopping 47 per cent compared to last year, supported largely by Autobarn same-store sales, which were up 36 per cent.
Finally, specialist wholesale revenue was up 45 per cent.
Bapcor CEO and Managing Director Darryl Abotomey said the company is very pleased with the start of the financial year.
“The automotive aftermarket is a resilient industry and historically has performed strongly in difficult economic circumstances,” Darryl explained.
“Recent trading is another example of its resilience assisted by the increase in sales of second-hand cars, reduction in the use of public and shared transport modes as well as government stimulus,” he said.
He said the company expects the ongoing impacts of COVID-19 to improve business as Australia sees an increase of domestic tourism and more vehicle use while international borders are shut and public transport makes people nervous.
He added, however, that while the company expected a strong first half of the 2021 financial year, the second half still remains uncertain. As such, Bapcor is in no position to give an earnings forecast for the 2021 financial year.
“Bapcor’s team members are dedicated to ensuring they have available the parts, accessories and services that are necessary to keep Australian, New Zealand and Thailand vehicles, including cars, light and heavy-duty trucks operating,” Darryl said.
It’s important to note that today’s figures are unaudited.
Nevertheless, investors seem impressed with the update, with Bapcor shares gaining 3.15 per cent to close at an all-time high $7.85 a pop. The company has a $2.66 billion market cap.