Repco has defied challenging economic times with healthy profits driven by Kiwis' love affair with used cars and a propensity for DIY. Photo / Supplied
Repco has defied challenging economic times with healthy profits driven by Kiwis' love affair with used cars and a propensity for DIY. Photo / Supplied
Kiwis’ love affair with cars is fuelling strong profits at auto parts retailer Repco, resulting in a big payday for its US owner.
Repco’s holding company paid out $123 million in dividends in its past financial year on the back of a near $30m profit, which hasdoubled since 2019, according to accounts filed with the Companies Office this week.
Repco, which has 128 store branches in New Zealand, is owned by GPC Asia Pacific – a division of Atlanta-based global distributor Genuine Parts Company.
GPC’s financial performance in New Zealand has steadily improved in recent years, revenue climbing from $377m in 2019 to $568.5m for the year ending December 2024.
Net profit has increased from $14.5m to $29.7m over the same period with barely a pause in growth during the Covid pandemic and subsequent recession.
The dividend payment is a culmination of those profits as well as a boost last year from the sale and leaseback of GPC’s New Zealand distribution center in Wiri, Auckland that resulted in a financial gain of $21.98m.
Repco is one of only a few retailers to escape the downturn in consumer spending and while sales declined by around $10m last year, the company has seen consistent growth since GPC bought the business in 2013.
GPC NZ now contributes around 15% of sales for the group in Australasia, which in turn contributes 10% of net sales by region for the US parent company.
The New Zealand entity recorded total assets of $702.7m at December 31 and net equity of $225.67m.
Aside from retail and trade business Repco, it also has Napa, which sells more specialist trade products, and Motion, which includes belts, bearings and fluids for industrial users.
In May 2023, GPC bought the remaining 70% it didn’t own of SAS Autoparts (Shock Absorber Services), which has 19 locations throughout New Zealand. The total cash consideration for that deal was $31.58m, valuing the business at just over $45m.
A year earlier, GPC bought certain assets of Century Distributors and BGH Group to extend its customer base.
The company has recently undertaken a refreshment plan, investing in new infrastructure and customer satisfaction.
“We have had an in-depth review of customer needs now and into the future and how we service them,” GPC NZ executive general manager Jonathon Maddren told the Herald in an interview for the Deloitte Top 200 awards in December. The firm was a finalist in the most improved category.
Jonathon Maddren.
“We shared our plan with our teams to reinvigorate the business. It’s not that we lost focus; we had to move with the times,” Maddren said.
He noted that the make-up of the vehicles on the road has changed with the advent of hybrids and EVs and the different technology involved.
“We’ve been training staff and even customers to meet the (new) product requirements.”
Repco’s main competitor SuperCheap Auto is also recording steady profits, with a trend for increased DIY car maintenance during economic downturn.
SuperCheap is owned by ASX-listed Super Retail Group, which also owns outdoor apparel and gear retailer Macpac. Accounts recently filed for the 2024 financial year showed revenue of $197.27m, up from $191.67m in 2023.
Net profit was $7.64m, down slightly from $7.89m in 2023 but above the $6.62m reported for 2022.
SuperCheap opened its first seven stores in New Zealand in November 2023 and currently has more than 40 stores trading nationwide, according to its website.
Repco has 148 stores in New Zealand. Photo / Bay of Plenty Times
Repco dates back to 1922 when it was founded by Geoff Russell in Melbourne.
In the 1980s, the business expanded into New Zealand and became popular with car enthusiasts and DIY customers. Having been listed on the ASX since 1937, the company was eventually purchased by Pacific Dunlop in 1988.
Three years later a buyout group led by Macquarie Bank bought the company before selling out in a public float worth A$442m and relisting on both the ASX and NZX in 2003.
In 2006, private equity funds advised by CCMP Capital Asia acquired Repco for A$1.75 ($1.98) per share, valuing the company around A$800m.
In 2013, Genuine Parts Company acquired the business, helping Repco expand and take advantage of the US company’s global supply chain.
Genuine Parts, established in 1928 and listed on the New York Stock Exchange, reported sales of $US23.5 billion in 2024, up 1.7% on the previous year, with net earnings of $US904m.
The company has 10,700 locations in 17 countries and employs more than 60,000 people.
