EBOS Group’s H1 profit hits a record A$141m, lifts dividend

Ebos Group, a distributor of healthcare and medical products, has reported its first half result. Photo / 123RF

EBOS Group’s track record of delivering record earnings has continued with the medical supplies distributor and pet food company reporting a 30 per cent lift in its underlying net profit to A$141.6 million for the first half.

Dual-listed EBOS said the result came from continued strong performances from both its Healthcare and Animal Care segments, boosted by acquisitions made in the 2022 financial year.

Revenue in the first half to December came to A$6.1 billion, up 17.0 per cent on the previous comparative period.

Underlying ebitda was A$289.2 million, up 39.3 per cent.

The company lifted its interim dividend by 12.8 per cent to NZ53c.

“The strong growth and earnings trajectory continues EBOS’ long-term track record of delivering for its shareholders and is a testament to the combined efforts of our employees across New Zealand, Australia and Southeast Asia,” EBOS chief executive John Cullity said.

Looking ahead, the company said it expected another full year of profitable growth.

“EBOS’ balance sheet is strong and well positioned to pursue growth opportunities,” the company said.

“The strength and diversity of our portfolio of businesses is reflected as both our Healthcare and Animal Care segments contributed strongly to the overall result and we successfully executed our strategy of pursuing both organic and inorganic growth,” it said.

In 2022 EBOS completed five acquisitions to expand its medical consumables and medical technology distribution business.

The Healthcare segment generated revenue of A$5.9b and underlying ebitda of A$255.0m, an increase of 17.6 per cent and 37.6 per cent, respectively.

In Australia, Healthcare revenue increased to A$4.8b and underlying EBITDA increased to $203.4m, an increase of 20.8 per cent and 35.4 per cent, respectively.

In New Zealand & Southeast Asia, Healthcare revenue increased to A$1.1b and Underlying EBITDA increased to A$51.6 million, an increase of 5.7 per cent and 47.3 per cent, respectively.

Community Pharmacy revenue increased by NZ$578.6 million (up 18.4%), driven by customer and market share growth.

The Animal Care segment generated revenue of A$291.2m and ebitda of A$51.0 million, an increase of 6.3 per cent and 31.5 per cent.

Growth in this sector was driven by strong performances from the groups leading brands and businesses (Black Hawk, Vitapet and Lyppard), the benefits of its new pet food manufacturing facility and growth in Animates - the New Zealand pet retail joint venture.

“Strong pet market conditions have continued and our brands and businesses have benefitted from this.” the company said.

EBOS shares last traded at $43.30, up 25c on Tuesday’s close.