Australia's Bapcor tumbles after flagging weak earnings, exodus of directors

Bapcor

24/07/2025 08:11

By Sherin Sunny

July 24 (Reuters) - Shares of Australia's Bapcor Ltd BAP.AX tumbled to a more than five-year closing low on Thursday, after the auto parts retailer flagged weaker-than-expected earnings, impairments and abrupt exits of three directors in a trading update.

The firm logged A$1.94 billion ($1.29 billion) in total unaudited total revenue for the year ended June 30, down 1.4% from last year.

It said trading was worse than anticipated during May and June, and booked A$50 million in post-tax charges for the previous fiscal year.

Bapcor, which operates retail and trade outlets under the Autobarn, Autopro, Burson and Midas brands, estimated to book A$6.5 million to A$7.5 million store-level impairment charges at some locations in its second half.

In a further blow to investor confidence, the company said  directors Mark Bernhard, Brad Soller and James Todd had resigned with immediate effect, compounding concerns over corporate governance and strategic direction.

Earlier, George Saud had resigned as the CFO of the company and was replaced by Kim Kerr in May.

The stock fell 31.7% to hit its lowest level since March 2020, before closing the day at A$3.66, way below the A$5.4 apiece bid that global private equity giant Bain Capital had offered the firm last year.

It lost nearly A$500 million ($330.80 million) in market value and was the top loser on the benchmark index .AXJO.

Given the three unexpected board changes, a deterioration in trading into year-end, and accounting changes following a recent CFO transition, it is difficult to see the stock as investible right now, analysts at Citi said in a note.

Bapcor appointed Angus McKay as its CEO last August to turn around the struggling company after it rejected an A$1.83 billion offer from Bain Capital.

"Significant work has been undertaken during the year to simplify the business, which has disrupted trading especially in the networks segment," said McKay.

($1 = 1.5117 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru; Editing by Subhranshu Sahu)

 ((Sherin.Sunny@thomsonreuters.com;))