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Ebos Group Limited (NZX: EBO) Full Year Results

Wednesday 18th August 2021

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EBOS Group Limited today announced another record result for the 2021 financial year, with key highlights including double-digit earnings growth and several growth investments. In today’s results announcement, EBOS Chief Executive Officer, John Cullity said:

“It is pleasing to report another record profit for EBOS for FY21. Our double-digit earnings growth reflects a continuation of the strong first half that we announced in February 2021. In addition, throughout the year we have made several exciting investments that position the Group for continued growth in the future.”

“The strength and diversity of our portfolio of businesses continues in the current difficult environment as both our Healthcare and Animal Care segments contributed strongly to the overall result.”

“Our Healthcare segment benefited from its leading market positions and had strong contributions from each of our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and Contract Logistics divisions.”

“The Animal Care segment has continued its strong first half performance with each of our key brands and divisions – Black Hawk, Vitapet and Lyppard – recording robust sales growth. Pet market conditions continue to be strong and our leading brands and divisions have capitalised on these opportunities.”

“Consistent with our strategy of investing for growth, EBOS is pleased to announce a significant capital investment in our Animal Care segment and a number of strategic acquisitions in our Healthcare segment that further expand and diversify our earnings. EBOS is investing approximately $80 million in a new state of the art pet food manufacturing facility in NSW, Australia that will facilitate insource manufacturing of Black Hawk as well as accelerate new product development opportunities. The initiative is expected to generate returns over the medium term in line with the Group’s Return on Capital Employed (“ROCE”). In addition, subsequent to 30 June 2021, EBOS has acquired another medical devices distribution business and has a high degree of certainty of executing a further acquisition in the near term that will expand our Institutional Healthcare division. These two acquisitions will have aggregate consideration of approximately $80 million and each will be EPS accretive to shareholders.”

“EBOS is pleased to have also released today its inaugural Sustainability Report which reports on its Environmental, Social and Governance (ESG) activity over the financial year. This is a key initiative that will serve as the framework for responsible governance and organisational practices to ensure we continue to meet the expectations of our stakeholders and maintain our social license to operate.”

Final Dividend

The Directors declared a final dividend of NZ 46.0 cents per share, an increase of 15.0% on the prior year. In combination with the interim dividend, this brings total dividends declared for FY21 to NZ 88.5 cents (up 14.2%), representing a 72% pay-out ratio.

Reflecting EBOS’ strong operating performance, cash flow and balance sheet, the Dividend Reinvestment Plan (“DRP”) will not be available for the final dividend.

Outlook

EBOS is pleased with the strong earnings growth in FY21 and expects to be able to generate further growth in FY22. The Group’s portfolio of businesses has proven to be very resilient throughout the COVID-19 pandemic, however lockdowns in New Zealand and Australia are evidence of the material uncertainties that exist and that may impact upon the Group’s future trading performance. As noted above, capital expenditure for FY22 is expected to remain elevated as a result of the completion of the new pet care manufacturing facility, which will result in additional expenditure of approximately $30 million over and above business-as-usual capex. EBOS has a strong balance sheet and is well positioned to pursue growth opportunities. A performance update will be provided to shareholders at the Annual Meeting on 19 October 2021.

Please see the links below for details

Media Release

Investor Presentation

2021 Annual Report

ASX Appendix 4E

ASX Appendix 4G and Corporate Governance Statement

NZX Results Announcement

NZX Distribution Notice

Sustainability Report

Source: Ebos Group Limited



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