Ebos transformed itself in 2013 with the purchase of Australian pharmaceutical wholesaler and distributor Symbion, its biggest-ever deal, and has since bought New Zealand vitamin and herbal tea maker Red Seal, pharmaceuticals firm Zest, Australian pharmacy retailer Good Price Pharmacy Warehouse, the BlackHawk Premium Pet Care pet food business, and more recently merged its Australian Chemmart pharmacy chain with rival Terry White Group.
The company's healthcare segment boosted revenue 18 per cent to $3.74b, and increased earnings before interest, tax, depreciation and amortisation 6.9 per cent to $106.7m, while animal care revenue was up 5.98 per cent to $216.1m for an 11 per cent gain in earnings to $21.1m.
Davies said Ebos is ready to make any new investments when the right opportunity presents itself, chiefly by managing a strong balance sheet. The company's net debt shrank to $288.1m as at December 31 from $379.3m a year earlier, or a ratio to earnings of 1.25 times down from 1.8 times.
The company's board looks at new investment options every time it meets and turns down far more than what it pursues, Davies said.
He's more interested in pursuing changes in the Australian pharmacy sector, using the merged Terry White Chemmart vehicle, with the sector likely to go through a period of consolidation, irrespective of whether regulation is changed to allow corporate investment.
Other areas that would pique Davies' interest would be in branded consumer products businesses that could potentially open export options and animal health products. The company is also investing in new automation in Australia for its healthcare distribution, with a A$55m factory in Brisbane expected to be completed next year.
The board declared an interim dividend of 30 cents per share, up 15 per cent from a year earlier, payable on April 7 with a March 17 record date. That's more than the 28.5 cent dividend predicted by Forsyth Barr's Leadbetter.
Ebos shares increased 0.2 per cent to $18.14, and have gained 39 per cent over the past 12 months.