Commercial vehicles keep delivering for Bapcor


Wholesale segment bolstered by organic and acquisition-driven growth

Commercial vehicles keep delivering for Bapcor
Bapcor hails Truckline's contribution to the Specialist Wholesale segment

 

Commercial vehicles continue to prove a boon for listed aftermarket accessories business Bapcor.

The company observes significant growth in its Specialist Wholesale (SWG) segment, comprising its light and heavy commercial parts arms, particularly after numerous strategic acquisitions in recent years.

Bapcor’s half-year accounts reveal its revenue from whole operations rose 25.8 per cent on the prior corresponding period (PCP) to $883.6 million, with earnings before interest, taxes, depreciation, and amortization (EBITDA) rising 36.5 per cent to $145.6 million.

SWG revenue increased to $328 million, up 39.5 per cent on the PCP, with heavy commercial contributing about $120 million and light $60 million to the segment; and overall SWG EBITDA growing 54.9 per cent to $45.9 million.

"The SWG segment continued strong growth in H1 FY21 driven by organic growth and the incremental benefit of the inclusion of Truckline and Diesel Drive, acquired in December 2019," Bapcor CEO Darryl Abotomey notes, with SWG revenue growing 17.1 per cent and EBITDA 36.2 per cent without the acquisitions.

Bapcor notes a "solid improvement in Truckline profitability" and the addition of five heavy commercial locations around the country.

As part of a five-year strategy, Bapcor aims for 50 heavy commercial locations (currently 31) returning $220 million revenue and 40 light locations (currently 16) delivering $120 million revenue.

The company continues to note significant progress in "investments to drive the long-term success of Bapcor", including its new Melbourne distribution centre, which is "nearing practical completion", with further e-commerce and digital transformation incoming.


More insight on Bapcor's warehouse build, here


Bapcor also notes chair Andrew Harrison retires from the board after seven years’ service.

Margie Haseltine, who was appointed to the board in May 2016, has taken over as company chair.

 

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