The EBOS Group has announced an interim unaudited net profit of $68.8 million for the six months to 31 December 2016
The group saw significant growth across its healthcare and animal care divisions in Australia and New Zealand, with group revenue up 17% to $4 billion.
- Underlying Net Profit after Tax up 9.5% to $70.2 million (+13.2% on a constant currency basis);
- Operating Cashflow before capex of $47.9 million;
- Underlying Earnings per Share growth of 9% (+12.7% constant currency); and
- Interim dividend declared of 30 cents per share, +15.4% to the previous corresponding period.
Statutory results in the first half were negatively impacted by the stronger NZD/AUD exchange rate which the Group estimates reduced EBITDA and NPAT by approximately $3.7 million and $2.1 million respectively.
“Our Healthcare and Animal Care businesses are performing strongly and the benefits of our diversified portfolio of businesses are evident again in the first half results,” says EBOS Group CEO Patrick Davies.
“Our more recent acquisitions of BlackHawk and Red Seal are making significant contributions to the earnings growth of the group.
“We continue to invest in our healthcare businesses as evidenced by completion of the Terry White Chemmart merger in the first half.
“This merger has created one of Australia’s largest retail pharmacy networks that is well placed for growth and future opportunities that emerge in the retail pharmacy sector.”
In the Australian pharmacy market, wholesale revenue growth (excluding Hepatitis C medicines) was affected by the on-going impact of PBS reforms and lower levels of activity in the non-prescription OTC channel.
The healthcare business continues to offset the negative impact of PBS reforms by expanding its revenue streams and generating cost savings and improved productivity across its operations.
The Healthcare business generated a 6.9% increase in EBITDA for the period, underpinned by an increase in revenues of 18.1%. The reported growth rates were negatively impacted by the stronger NZD/AUD exchange rate and in constant currency, revenues grew by 21.5% leading to EBITDA growth of 10.6%.
In Australia, revenues climbed 27% resulting in EBITDA growth of 11% (constant currency). Revenue growth was driven by the full six months’ sales of Hepatitis C medicines.