EBOS has announced “strong growth” in revenue and earnings with a pharmacy business boosted by its agreement with Chemist Warehouse
The group has reported a significant increase in first half earnings, with revenue of $4.4 billion – up 25.2% – and statutory EBITDA of $167.2 million, up 36.4%.
Statutory net profit after tax was $87.1 million, up 21.8%; while underlying NPAT was $84.2 million (up 15.8%) and underlying EBITDA $149 million (up 13.4%).
EBOS Chief Executive Officer, John Cullity said that the results were “reflective of the commencement of the Chemist Warehouse Group (CWG) pharmaceutical wholesale contract, together with strong performances from our Institutional Healthcare, Contract Logistics and TerryWhite Chemmart (TWC) Group businesses reflecting the strength of the EBOS business model”.
“Our extensive and diverse portfolio has again delivered a significant increase in both revenue and earnings as shown in today’s results.
“The growth in our pharmacy wholesale and contract logistics businesses is testament to the Group’s capital investment strategy over recent years which has enabled us to productively manage the significant uplift in volumes and revenues.
“Our Community Pharmacy business grew revenues by 35.4% following the successful commencement of both the CWG contract and growth within our existing customer base, including the TWC Group,” Mr Cullity said.
Overall the community pharmacy business saw revenue grow up by 35.4%.
EBOS noted that the group welcomed 16 new TerryWhite Chemmart pharmacies during the period, and that TWC’s network sales grew by 5.7%.
Prescription sales, on a like-for-like basis, increased by 5.3%, driven by increased brand awareness, customer satisfaction and new programs with Qantas Frequent Flyer, Bupa and Afterpay.
The half was also highlighted by EBOS entering the A$8 billion Australian and New Zealand medical device sector with the acquisition of distribution business LMT and National Surgical.
LMT/NS over many years have built a strong presence in providing product and services to the Orthopaedic, Spine, Neuro, Ear Nose and Throat, and most recently, the sports medicine markets, EBOS noted.
“We are pleased with the progress we are making in developing this strategic new platform for the Group and the performance is in line with our internal expectations,” Mr Cullity said.
EBOS also made note of the upcoming Seventh Community Pharmacy Agreement, changes to direct distribution and observed the effects of the COVID-19 novel coronavirus on the pharmacy environment.
Mr Cullity said Symbion and its industry representative body (NPSA) were working diligently with all stakeholders on negotiating a favourable outcome to the 7th Community Pharmacy Agreement
EBOS says that it is critically important that the 7th CPA provides the industry with a framework for continued investment in the industry which represents a critical piece of infrastructure to Australia’s health system.
“In support of the traditional wholesale distribution model it was pleasing to see major pharmaceutical supplier Upjohn, part of the Pfizer Group, announce in December 2019 that it would move away from exclusive direct distribution,” Mr Cullity said.
“This will see Upjohn products being available via the Australian wholesale network which is a great outcome for patients ensuring they will receive medicines in a timely and efficient manner.”
EBOS says it has not seen any significant impact to the Group as a result of the coronavirus (COVID-19).
“We continue to closely monitor this issue and will take all necessary actions to ensure we are well placed to respond to any challenges that arise as the situation unfolds,” it said.