Key Highlights

  • Total Trade parts sales rose 2.5% in the first quarter of FY27, or 1.6% on a like-for-like basis.
  • Networks sales across CVG, JAS and Wholesale increased 4.1%.
  • Net debt fell $19 million from 30 June 2026 to $116 million at 30 September 2026.
  • FY26 underlying net profit after tax was $10.8 million, with a statutory net loss after tax of $431.6 million.

Bapcor Limited (ASX:BAP) used its 2026 Annual General Meeting on 22 October to report first-quarter trading for FY27 and to reaffirm the outlook it gave alongside its FY26 results in August. The address from Chief Executive Officer and Managing Director Chris Wilesmith covered sales by segment, gross margin and net debt.

The meeting materials also reviewed the year ended 30 June 2026, in which underlying net profit after tax was $10.8 million and the company recorded a statutory net loss after tax of $431.6 million.

First-Quarter Sales by Segment

Total Trade parts sales increased 2.5% compared with the first quarter of FY26 and 1.6% on a like-for-like basis, and Bapcor said its Trade market share was higher than in the same quarter a year earlier. Sales across the Networks businesses, which comprise CVG, JAS and Wholesale, rose 4.1%. New Zealand recorded modest like-for-like sales growth in local currency.

Retail remained soft. Total and like-for-like sales were affected by cost-of-living pressures and less effective promotional activity, and growth in non-discretionary categories was more than offset by declines in discretionary categories. Promotions have been put in place for the Black Friday and Christmas trading periods.

On a constant-currency basis, Group like-for-like sales increased 0.5% against the comparable quarter and total sales increased 0.3%. Gross margin percentage improved in both Trade and Retail compared with the prior corresponding period, which the company attributed to targeted pricing initiatives introduced in the second half of FY26.

Cash, Debt and the FY26 Result

Net debt reduced by $19 million from 30 June 2026 to $116 million at 30 September 2026, a change the company said was driven primarily by operating cash flow. At 30 June 2026 net debt had been $135 million, following a $200 million equity raising earlier in the year and improved working capital management.

For FY26, Group revenue of $1.9 billion declined 1.8% on the prior year. The statutory loss included $442.4 million of post-tax significant items that predominantly related to non-cash impairments. Higher fuel, freight and oil-related product costs and softer consumer and business confidence also affected the year. In the second half, reductions in overdue debtors and inventory, along with other working capital initiatives, delivered a $68.5 million cash benefit. FY26 EBITDA came in above the guidance the company issued in May 2026.

No dividends were declared for FY26. No short-term incentives were awarded to the executive team, and the long-term incentive due this year did not vest. The Board also said the executive pay outcomes reflected company performance.

Outlook and Strategy Reset

The FY27 outlook reaffirmed at the meeting says underlying NPAT is expected to be materially weighted to the second half. Modest revenue growth is expected, as the Middle East conflict and cost-of-living pressures moderate the benefits of turnaround initiatives. Those benefits will be largely reinvested in technology and people, and capital expenditure and depreciation and amortisation are expected to be in line with FY26 levels.

Bapcor has also started a strategy reset and portfolio review, with an initial focus on divesting smaller non-core assets. It will concentrate on four areas: distribution of parts for passenger and light commercial vehicles, distribution for heavy commercial vehicles, retailing of automotive parts and accessories, and servicing and repair of passenger and light commercial vehicles. Five priorities guide the plan: Team, Customer, Future Fit, Efficiency and Growth.

A review of the capital management framework is under way, and the company intends to run a competitive tender for external audit services during FY27. PwC, auditor since 2012, will continue for FY27.

Chair Lachlan Edwards, who was appointed on 24 November 2025, listed his priorities as appointing an experienced automotive aftermarket chief executive, strengthening management capability, resetting the balance sheet, working with lenders and starting the strategy review. Mr Wilesmith began as CEO in January 2026, and Andrew Fraser joined the Board after the end of the financial year.

Where the Update Leaves Bapcor

The reported position is one of modest first-quarter sales growth in Trade and Networks, softer Retail results, higher gross margin percentages in Trade and Retail and net debt of $116 million. Leadership changes since January 2026, including Mr Wilesmith's appointment and the addition of several senior executives, accompany a FY27 outlook that remains unchanged from August.