FIRST CUT: Ebos posts 4.9% gain in full-year profit, lifts dividend

Thursday 24th August 2017

Ebos Group, the pharmaceutical and animal health products maker, posted a 4.9 percent gain in full-year profit and lifted its final dividend as acquisitions and sales of products such as hepatitis C medicines drove revenue growth.

Profit rose to $133 million in the 12 months ended June 30, from $127 million a year earlier, Christchurch-based Ebos said in a statement. Revenue climbed to $7.6 billion from $7.1 billion.

In May, Ebos announced the acquisition of HPS, Australia’s largest provider of outsourced pharmacy services to hospitals, for A$154 million, adding to a healthcare division that stretches from pharmacies to consumer products, healthcare and contract logistics. It bought a majority stake in Terry White Group last October, merging that business with its Chemmart unit to create one of Australia's largest chains of pharmacies. Healthcare revenue rose 7.7 percent to $7.2 billion in the year while animal care sales rose 2 percent to $423 million.

Ebos "has recorded a strong financial performance in FY17 and the company is confident of further profit growth into FY18 on an underlying, constant currency basis," it said. Guidance for the current year will be updated at the annual meeting on Oct. 17, it said.

Earnings before interest, tax, depreciation and amortisation from the healthcare division rose 7.1 percent to $209 million, with about $165 million from Australia and $44 million from the New Zealand market. Within that, community pharmacy sales gained 11 percent, which Ebos said was attributable to new hepatitis C drug sales.

Animal care ebitda rose 7.6 percent to $44.7 million, driven by a 48 percent jump in sales of Black Hawk branded products while Vitapet sales rose 8.5 percent.

Net debt climbed to $435 million from $248 million in the previous year and included debt funding for the HPS purchase. Gearing increased to 27.4 percent from 18.5 percent.

Ebos will pay a final dividend of 33 cents a share imputed to 25 percent and franked to 100 percent for Australian shareholders. That brings payments for the year to 63 cents, up from 58.5 cents in the previous year.

Ebos stock last traded at $17.61 and has gained 5.5 percent this year.

(BusinessDesk)

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