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Ebos Group Limited (NZX: EBO) Half Year Results

Wednesday 16th February 2022

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EBOS Group Limited (“EBOS” or the “Group”) today announced another record result for the first half of the 2022 financial year, including double-digit underlying earnings growth.

In commenting on today’s results announcement, EBOS Chief Executive Officer, John Cullity said: “We are pleased to report another record result for EBOS on the back of particularly strong revenue growth across our key Healthcare and Animal Care segments.”

“Both segments continued their strong growth trajectory, reinforcing the value of our diverse portfolio of businesses and the successful execution of our strategy of pursuing both organic and inorganic growth.”

“The strong growth of our Healthcare segment was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and Contract Logistics businesses. The Community Pharmacy division’s performance was particularly pleasing, resulting from customer growth, market share gains and the return of Pfizer’s retail pharmacy volumes to the wholesale channel.”

In noting the growth of the Community Pharmacy and TWC businesses, Mr Cullity acknowledged the tireless efforts of the pharmacist community over the past two years.

“The commitment to our communities by all pharmacists and their teams during the pandemic has been nothing short of extraordinary. From day one of the pandemic pharmacists have remained open, providing guidance, care and comfort for their patients and customers.”

Mr Cullity also praised the TWC network which has been at the forefront of Australia’s vaccination drive, providing COVID-19 vaccinations and booster shots with the convenience and accessibility of our network clearly resonating with those seeking vaccination.

“The TWC pharmacy network has been responsible for delivering 23% of all pharmacy delivered COVID-19 vaccinations in Australia and we are proud of our efforts to support the health of our communities during the pandemic.”

Mr Cullity also commented on the strong performance of the Group’s Animal Care businesses.

“The Animal Care segment continues to build on its track record of outstanding performance which was driven by solid sales growth across our Black Hawk, Vitapet and Lyppard businesses. We continue to benefit from strong market dynamics as well as the strength of our leading brands and market positions. Construction of our new state of the art pet food manufacturing facility in Parkes, NSW has been completed and the project has now progressed through to the commissioning phase with the full commercial benefits of this investment expected in FY24.

“EBOS has continued its strategy of investing for growth, with three acquisitions completed in the first half of the 2022 financial year. The Pioneer Medical, MD Solutions and Sentry Medical acquisitions further strengthen our presence in the Institutional Healthcare sector and are EPS accretive to EBOS shareholders.”

“In addition, in December 2021 EBOS announced an agreement to acquire LifeHealthcare, which is expected to establish EBOS as a leading independent medical devices distributor in Australia, New Zealand and South East Asia. This acquisition will build on our previous investments in the medical devices sector, which have contributed to the strong growth reported this period.”

Interim Dividend

The Directors declared an interim dividend of NZ 47.0 cents per share, an increase of 10.6% on the prior corresponding period. This implies a dividend payout ratio of 77.4% on an underlying basis (or 67.3% excluding dividends paid on the new shares issued under the capital raisings in connection with the expected LifeHealthcare acquisition).

The Dividend Reinvestment Plan (DRP) will not be operational for the interim dividend in light of EBOS’ decision to accept oversubscriptions and upsize the recently completed retail offer in connection with the expected LifeHealthcare acquisition.  The record date for the dividend is 4 March 2022 and the dividend will be paid on 18 March 2022. The interim dividend will be imputed to 25% for New Zealand tax resident shareholders and fully franked for Australian tax resident shareholders.  EBOS reiterates its policy of declaring dividends representing between 60% to 80% of NPAT.

Please see the links below for details

Media Release

Investor Presentation

Half Year Financial Statements

ASX Appendix 4D

NZX Results Announcement

NZX Distribution Notice

Shareholders report

Directors' declaration

Source: Ebos Group Limited

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