Bapcor Earnings: Cost-of-Living Pressures Hit Discretionary Automotive

A slowdown in discretionary spending is weighing on Bapcor’s near-term. The first-half underlying net profit after tax of AUD 54 million was about 13% below the previous corresponding period. This is mainly due to continued weakness in the retail business, which is more exposed to discretionary purchases. Retail EBITDA fell 12% amid both revenue decline and margin degradation. By contrast, the specialist wholesale and trade businesses, including New Zealand, enjoyed revenue and EBITDA margin growth. These businesses are primarily nondiscretionary, selling maintenance-related automotive parts.