Bapcor shares fall on weaker-than-expected sales, board exodus

Shares in Bapcor have shed nearly 30 per cent after the Autobarn owner revealed its second-half trading performance was weaker than expected in May and June.

It has also been rocked by the shock exit of three board directors with explanation.

The vehicle parts and accessories group — also behind the Burson, Autopro and Midas brands — blamed its weak second half on several factors, including significant disruption in the specialist wholesale segment due to consolidation of activities involving three businesses into its new Auto Electrical Group.

In a trading update on Thursday, the group also said it continued to face a challenging retail environment, including lower spending on discretionary categories, competitor activity and changes to its promotional cycle.

The group expects pro-forma net profit — which excludes one-off items — to come in between $81 million and $82m in the 2025 financial year, compared with the $94.8m reported the previous year. Revenue is likely to be 1.4 per cent lower to $1.94 billion.

However, statutory net profit is forecast to come in between $31m and $34m, a turnaround on its $158.3m loss in the prior corresponding period.

This followed a “comprehensive review” of the company’s balance sheet, which identified $43.3m to $45.3m in unaudited post-tax significant items in the second half, in addition to $4.7m recognised during the half-year.

Bapcor shares closed 28.4 per cent lower, or $1.45, to $3.66.

Bapcor executive chair Angus McKay said significant work had been undertaken during the year to simplify the business, including 45 sites that have either moved or closed.

“These changes were disruptive but necessary as we strive to simplify operations to set us up into the future,” Mr McKay, former 7-Eleven Australia boss, said.

“The second-half trading result was also impacted by the continued challenging Australian retail environment and economic conditions in New Zealand.”

At the same time, Bapcor also announced Mark Bernhard, Brad Soller and James Todd had resigned as directors.

No reason was provided for the sudden departures, but Mr McKay thanked the directors for their service. Bapcor said a board refresh process was now being “accelerated”.

RBC Capital Markets analyst Jack Lynch said it was a “challenging update” for Bapcor with soft trading performance across all segments.

“Analyst focus on the call will be on the trading outlook across segments, reasons for board changes and how recent balance sheet changes impact leverage ratios,” he said.