Big year for pharmacy leader

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EBOS Group, owners of Symbion and Terry White Chemmart, have recorded a record net profit, but have seen a slight downturn in healthcare revenue 

EBOS Group today announced a record interim unaudited net profit of $76.7 million for the six months to 31 December 2017.

However, there were mixed results across its healthcare business, and pharmacy OTC sales were flat for the the six months to 31 December 2017. 

The results demonstratied “the benefits of a diverse portfolio of Healthcare and Animal Care businesses in Australia and New Zealand”, the group’s six-month report revealed.

However, the results were mixed in the group’s healthcare business, where revenues declined 5.6% although EBITDA grew 9.0%. The revenue decline was driven by a $250m reduction in hepatitis C medicine sales.

Excluding this impact, sales revenue grew $76 million or +2.9%. EBITDA growth was assisted by the full six-month contribution of HPS which is performing in-line with expectations, EBOS said.

“Our record first half results are in line with our expectations and reflect a consistent positive momentum across both our Healthcare and Animal Care businesses”, said group CEO, Patrick Davies.

“During the first half, we have fully transitioned HPS into the Group, further expanding our leading position in the Institutional Healthcare market. In October, we acquired a strategic 14.1% shareholding in MedAdvisor Ltd, Australia’s leading digital medication management company.

In the Australian pharmacy market, revenue growth (excluding hepatitis C medicines and acquisitions) of +1.9% was moderate due to the on-going impact of PBS reforms. Sales in the non-prescription over-the-counter (OTC) channel were flat compared to the prior corresponding period

“In Healthcare, the rebranding of TerryWhite and Chemmart pharmacies to TerryWhite Chemmart is now largely complete. Red Seal continues to outperform in the New Zealand domestic market and is focused on growing into the Australian and Asian markets”, Mr Davies said.

  • Financial Highlights
     Group revenue stable at $3.9 billion
     EBITDA growth of 15.6% (+9.5% underlying, constant currency basis)
     Net Profit after Tax up 11.5% (+5.5% underlying, constant currency basis)
     Record first half Operating Cashflow of $101.7 million
     Earnings per Share growth of 11.0% (+7.4%, constant currency basis)
     Interim dividend declared of 33 cents per share, +10% to the previous corresponding period

Meanwhile, Mr Davies has advised he is stepping down as Group CEO and will be succeeded by John Cullity, currently the Chief Financial Officer of the group, from 31 March 2018.
Mr Davies said he felt privileged to have led Symbion and now EBOS over a number of years.
“EBOS today plays such a pivotal role in Australia and New Zealand’s healthcare system and continues to expand its substantial trans-tasman Animal Care business”, he said.
“I am very proud of what the management team and everyone at EBOS has achieved since the transformational deal with Symbion in 2013. The business today is extremely well diversified with enviable market positions and is very well placed to continue to grow and deliver on our strategy.”

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