Ebos posts stable results

Ebos Group yesterday announced its financial performance for the 2018 financial year, delivering net profit after tax of $149.6 million.

The company says the results reflect a year of strong organic growth combined with the added benefit of a number of strategic acquisitions.

Financial highlights:

  • Group revenue stable at $7.6 billion.
  • Earnings beforeinterest, taxes, depreciation and amortisation (EBITDA) growth of 16.2 per cent (+10.3 per cent underlying, constant currency basis).
  • Net profit after tax up 12.2 per cent (+5.5 per cent underlying, constant currency basis).
  • Strong operating cashflow before capital expenditure of $176.2 million (+$32.2 million).
  • Earnings per share growth of 12.1 per cent (+5.4 per cent underlying, constant currency basis).
  • Net debt to EBITDA of 1.74x (last year 1.79x).

“We are pleased to once again report strong financial results,” Ebos CEO John Cullity said. “We have delivered underlying, constant currency EBITDA growth slightly ahead of our guidance to the market. The financial results, combined with strong free cashflow, reflect a consistent positive momentum across both our healthcare and animal-care businesses.

“During the 2018 financial year we have fully transitioned HPS [Australia’s largest provider of outsourced pharmacy services to hospitals] into the group, further expanding our position in the institutional healthcare market. In October 2017, we acquired a strategic 14.1 per cent shareholding in MedAdvisor, an Australian digital medication management company, and in March 2018, we acquired one of New Zealand’s leading foot-care consumer brands, Gran’s Remedy.”

In Australia, Ebos’ healthcare revenues declined 4.4 per cent ($260 million) although EBITDA grew 11.9 per cent (constant currency basis). The revenue decline was driven by a $364 million reduction in hepatitis C medicine sales. Excluding this impact, sales revenue increased by $103.8 million or 2.1 per cent. EBITDA growth was assisted by the full-year contribution of HPS, which was performing solidly and in line with expectations, Mr Cullity said.

In the community pharmacy business, revenue growth (excluding hepatitis C medicines and acquisitions) of 1.4 per cent was “moderate”, due to the ongoing impact of PBS reforms. Sales in the non-prescription OTC channel were marginally above last year, which “reflects challenging retail environments”, Mr Cullity said. The business, he added, “continues to generate efficiency savings from its previous capital investments and has a renewed focus on reducing operating costs in the current deflationary price environment”.

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