Chief executive John Cullity called the result strong, reflecting its diversified business. Photo: RNZ / Nate McKinnon
Pharmaceutical supplier and animal products company EBOS has posted a solid lift in half-year profit on increased sales, new acquisitions and upgrading its infrastructure.
Key numbers for the six months ended December compared with a year ago:
- net profit A$136.2m vs A$132.2m
- revenue A$6.58b vs A$6.15b
- underlying profit A$152.4m vs A$141.6m
- interim dividend NZ$0.57 per share vs NZ$0.53 per share.
Chief executive John Cullity called the result strong, reflecting its diversified business.
"The group also continued to deliver strong normalised growth... with underlying EBITDA (operating earnings) growing by approximately 10 percent, demonstrating the benefits of our diversification, which provides multiple growth levers."
EBOS distributes pharmaceuticals on both sides of the Tasman, has retail pharmacy chains in Australia, is part-owner of the Animates pet goods chain in New Zealand, has pet food makers, and a medical device seller in southeast Asia.
Healthcare sales were up 7.5 percent to A$6.3b, but it said New Zealand earnings were affected by a fall in spending on Covid-related goods.
It said it planned to buy the remaining 10 percent of the Transmedic business - which sells medical equipment - to take full control in two years, while it was planning to build new logistics facilities, including in Auckland.
The animal care business had a near 2 percent fall in revenue, with increased competition denting sales, while the recently acquired dogroll maker Superior performed strongly, and its leading Black Hawk and Vitapet brands had been releasing new products.
The company was set to lose a major supply contract to the Australian arm of Chemist Warehouse in June, expected to knock a A$2b hole in its revenue, while it also booked a A$10m one-off cost from a failed takeover deal, believed to be for Australian animal products firm Greencross.
As usual, EBOS said its balance sheet was strong and well-positioned to pursue growth opportunities, but gave no forward earnings guidance.
