EBOS reports solid first half growth in Underlying earnings

EBOS Group Limited (EBOS) today announced solid growth in underlying earnings for the first half of FY19.

First half Highlights

  • Underlying EBITDA A$131.4 million (up 4.0%)
  • Underlying NPAT A$72.7 million (up 4.0%)
  • Underlying Earnings per Share growth of A47.8 cents (up 4.0%)
  • Interim dividend declared of NZ34.5 cents per share (up 4.5%)
  • Signed contract with Chemist Warehouse Group (CWG) for the exclusive wholesale distribution of pharmaceutical products to more than 450 Chemist Warehouse and My Chemist stores in Australia from 1 July 2019.
  • Opened our new world-class, highly automated pharmaceutical Distribution Centre in Brisbane and commenced operations at our new Contract Logistics facility in Sydney.
  • Completed several strategic acquisitions during the period for a total investment of $92.5 million including:
    • The acquisition of all minority shares in Terry White Group (TWG).
    • The acquisition of Warner & Webster, a medical & surgical supplies wholesaler servicing Victoria and South Australia.
    • The acquisition of Therapon, a Victorian based Veterinary distribution business.
    • The acquisition of Quitnits, a leading, trusted head lice products business in Australia.

Chief Executive Officer, John Cullity said that the Animal Care segment had proven to be the Group’s lead performer during the half.

“Our Animal Care segment had another strong trading period which reflects the strength of our key brands Black Hawk and Vitapet.

“Black Hawk recorded double digit revenue growth in both Australia and New Zealand and is now well established as one of the region’s leading premium pet food brands.

“Our Healthcare business also performed well notwithstanding the softer trading performance in our Australian pharmacy wholesale business due to the combined impact of PBS reforms and general market dynamics.

“These dynamics make our investment in the new Brisbane facility all the more important.  This investment will lead to further gains in productivity and position the business to benefit from the extra volumes generated by the CWG contract, which will materially add to earnings from FY20.

“The half was also highlighted by several strategic acquisitions as we continue to build our Healthcare and Animal Care businesses. The total value of first half investments was $92.5 million and included a move to 100% ownership of Terry White Group (TWG) along with another three small-to-medium sized bolt on acquisitions”, Mr Cullity said. 

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