Shares in Autobarn owner Bapcor smashed after flagging hit to full-year profit

Shares in Autobarn owner Bapcor have plunged to its lowest level in more than four years after the company flagged its full-year profit will likely fall by as much as $32 million on the previous year.

Bapcor shares were down 29 per cent to $4.12 in early trade on Thursday and have fallen to their lowest level since March 2020 when it hit $3.16.

Bapcor — which also operates the Burson, Autopro and Midas brands — said its second-half net profit would be below the first-half’s $54.2m, and the 2024 financial year result was likely to be between $93m and $97m.

It reported a net profit of $125.3m in the 2023 financial year.

The company, worth $2 billion, on Thursday gave several reasons for the weaker performance, including continued challenging trading conditions in its retail business as consumers cut spending. It also cited higher interest costs.

Meanwhile, its wholesale business was being impacted by competitive pricing, resulting in volume and margin compression.

The profit warning comes just days after Bapcor announced its incoming chief executive and former racing driver Paul Dumbrell, who was due to start yesterday, made the last-minute decision to pull out of the top job.

Mr Dumbrell is a former V8 Supercar racing driver and in 2012 won the prestigious Bathurst 1000 motor race as a co-driver with Jamie Whincup.

Bapcor entered a trading halt on Tuesday to announce Mr Dumbrell had made a personal decision not to join the company. Mark Bernhard will continue as interim CEO while the board begins a new search for a replacement.

“Trading conditions since our last update to the market have remained challenging as consumers continue to pull back on spending, primarily impacting our retail business,” Mr Bernhard said on Thursday.

“Pleasingly, our trade and specialist Networks businesses have continued to grow sales, on what was a strong prior year comparative.”

Bapcor said management was actively working to reduce the cost base to match the current trading environment.

The withdrawal of Mr Dumbrell — who would have been Bapcor’s fourth CEO in two years — is another blow to the company, with former chief executive Noel Meehan announcing his departure in February after two years in the top job.

Mr Meehan took over after long-serving chief executive Darryl Abotomey was ousted.

Company chair Margaret Anne Haseltine also announced earlier this year she would not be standing for re-election at the annual general meeting this year.

Bapcor is also on the hunt for a new chief financial officer following the appointment of George Saoud as interim CFO last month. He replaced Stefan Camphausen, whose resignation was announced in January.