Former Hellaby unit earner for Bapcor
AUCKLAND: ASXlisted Bapcor is still being pleasantly surprised by the former Hellaby Holdings automotive unit, which delivered a 29% increase in firsthalf earnings.
Bapcor New Zealand posted earnings before interest, tax, depreciation and amortisation of $A15.6 million ($NZ16.8 million) in the six months ended December 31, on revenue of $A148.2 million, accounting for about 22% of group earnings and 24% of sales. Within that, the NZ trade unit increased revenue 7.2% to $96 million and ebitda 32% to $11.4 million, while the Australian wholesale division sitting under Bapcor NZ’s umbrella increased sales 7.2% to $A60.1 million and ebitda 18% to $A6.1 million.
‘‘Bapcor New Zealand performed very strongly in the half year and, in New Zealand dollar terms, recorded revenue growth of 8.4% and ebitda growth of 28.5%, compared to Hellaby’s reported result for H1 FY17 excluding Hellaby corporate head office costs,’’ chief executive Darryl Abotomey said in a statement.
‘‘Bapcor New Zealand’s largest business, the BNT trade business, achieved samestore sales growth of 8.5%, reflecting the success of organisation changes, range expansion and market growth.’’
The Victoriabased company bought and delisted Hellaby for $352 million in 2016 to acquire the auto division, in a market where cheap petrol and an expanding population has underpinned record new car registrations.
Bapcor said the New Zealand acquisition ‘‘continues to exceed business case expectations’’ and that the integration of the unit was on track.
The Hellaby acquisition came with unwanted footwear and resource services businesses, which Bapcor is in the process of selling. The auto parts firm said yesterday it was on track to reap $92 million from the exit.
Bapcor’s group profit rose 60% to $A40.4 million on a 42% gain in revenue to $A616.1 million. The board declared an interim dividend of A7c a share.
The ASXlisted stock fell 1.5% to $A5.585 and has increased 0.4% so far this year. — BusinessDesk