Sharechat Logo

Ebos first-half profit gains 19% as acquisitions drive growth

Wednesday 24th February 2016

Text too small?

Ebos Group, the animal and healthcare company that's been expanding via acquisitions, posted a 19 percent gain in first-half profit on growth in its healthcare and animal care units, allowing it to declare a bigger-than-expected interim dividend.

Net profit rose to $64 million, or 42.5 cents a share, in the six months ended Dec. 31, from $53.9 million, or 36.2 cents, a year earlier, the Christchurch-based company said in a statement. Sales rose 8.3 percent to $3.38 billion.

Ebos announced the $80 million purchase of New Zealand vitamin and herbal tea maker Red Seal last November, adding to a string of recent acquisitions including specialty pharmaceuticals firm Zest, Australian pharmacy retailer Good Price Pharmacy Warehouse and the BlackHawk Premium Pet Care pet food business. It has also opened a pharmaceutical distribution centre in Melbourne and won a state-wide contract to supply medical consumables to public hospitals in New South Wales. Acquisitions would help drive earnings growth in the full year, the company said

"The financial performance and growth in the first half has benefited from acquisitions and investments undertaken in previous periods which have now cycled through a full 12 months of ownership," said chief executive Patrick Davies. "We remain confident of delivering another year of double digit, constant currency, profit growth for our shareholders in 2016."

The company will pay a first-half dividend of 26 cents a share, up 18 percent from a year earlier. The record date is March 11, with the payment to be made on April 1. The dividend will be imputed to 25 percent for New Zealand shareholders and fully imputed for Australian investors. Ebos suspended its dividend reinvestment plan for the interim payment. Brokerage Forsyth Barr had forecast a dividend of 24.5 cents.

The healthcare division recorded a 13 percent gain in first-half earnings before interest, tax, depreciation and amortisation to $99.8 million on 8.2 percent revenue growth to $3.2 billion, Animal care ebitda rose 16 percent to $19.6 million as sales gained 10 percent to $210 million.

Ebos shares last traded at $13.70 and have gained 41 percent in the past 12 months. The stock is rated a 'hold' based on the consensus of five analysts polled by Reuters.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar trades near 2019 low on Aussie rate outlook, China worries
Short window left to lock in good interest rates on term deposits
MediaWorks breakeven stymied by radio
Loan-to-value restrictions effective but have some drawbacks - RBNZ
Yili deal a timely cash injection for Westland farmers - ANZ
AFT interested in medicinal cannabis but says it's not commercially viable yet
Serko chalks up another year of 28% sales growth, profit dips on acquisition adjustment
NZ first-quarter retail sales grow 0.7%, slightly better than expected
SkyCity poised to enter online gaming space
AFT narrows net loss, turns cash flow positive

IRG See IRG research reports