NewsHealthcare Spending Boosts EBOS Profit

Healthcare Spending Boosts EBOS Profit

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Pharmaceutical supplier and animal products company EBOS has unveiled a noteworthy surge in half-year profit, attributing the growth to heightened sales, recent acquisitions, and infrastructure enhancements.

Key financial indicators for the six months ending in December, compared to the previous year, are as follows:

Net profit: A$136.2 million vs. A$132.2 million
Revenue: A$6.58 billion vs. A$6.15 billion
Underlying profit: A$152.4 million vs. A$141.6 million
Interim dividend: NZ$0.57 per share vs. NZ$0.53 per share.
Chief Executive John Cullity hailed the results as robust, emphasizing the strength of the diversified business model.

Cullity stated, “The group also continued to deliver strong normalized growth… with underlying EBITDA (operating earnings) growing by approximately 10 percent, demonstrating the benefits of our diversification, which provides multiple growth levers.”

EBOS, engaged in pharmaceutical distribution on both sides of the Tasman, operates retail pharmacy chains in Australia, co-owns the Animates pet goods chain in New Zealand, possesses pet food manufacturing facilities, and operates as a medical device seller in Southeast Asia.

Healthcare sales experienced a 7.5 percent increase, reaching A$6.3 billion. However, New Zealand earnings were impacted by a decline in spending on Covid-related goods.

EBOS announced plans to acquire the remaining 10 percent of the Transmedic business, a medical equipment seller, aiming to achieve full control within two years. Additionally, the company revealed intentions to construct new logistics facilities, including one in Auckland.

In the animal care sector, revenue witnessed a slight dip of nearly 2 percent due to heightened competition. Despite this, the recently acquired dogroll maker Superior performed strongly, and flagship brands Black Hawk and Vitapet released new products.

EBOS faces challenges, including the anticipated loss of a significant supply contract to the Australian arm of Chemist Warehouse in June, potentially impacting revenue by A$2 billion. The company also incurred a one-off cost of A$10 million from a failed takeover deal, believed to be associated with Australian animal products firm Greencross.

EBOS maintained confidence in its strong balance sheet, positioning itself well to pursue growth opportunities. However, the company refrained from providing forward earnings guidance.

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