EBOS: subdued healthcare growth

EBOS results for the six months to December 31, 2018 show statutory net profit after tax declining 3.7 per cent to $67 million on total revenue of $3.5 billion, down from the 2017 figure, which it says is partly due to a reduction in sales of hepatitis C medications.

EBOS says its Australian Healthcare segment shows a $161 million drop in sales, mainly due to the impact of PBS price reforms as well as the lower hepatitis C product sales.

The group says that, in a busy year, it has:

  • Signed contracts with Chemist Warehouse Group for exclusive wholesale distribution to more than 450 Chemist Warehouse and My Chemist stores in Australia, beginning on July 1, 2019.
  • Acquired all minority shares in the Terry White Group.
  • Opened a new automated distribution centre in Brisbane.
  • Opened an ultramodern contract logistics facility in Sydney.
  • Acquired medical and surgical supplies wholesaler Warner & Webster.
  • Acquired the Quitnits head lice products business.

EBOS CEO John Cullity says the company has recorded a positive start for the first half of the financial year, with strong growth in the animal care business and subdued growth in healthcare “attributable to the general market environment and the impact of PBS reforms”.

The report says the 2018 financial year was another successful period for EBOS Group with the results achieved reflecting strong organic growth combined with the benefit of the HPS business acquired in the previous year.

In recent years, the group says, it has committed to a major capital investment program involving new distribution centres to cater for growth across its core businesses.

“In 2018, our major capital projects in both Australia and New Zealand have all seen excellent progress,” Mr Cullity said. “The new Christchurch and Sydney contract logistics facilities are now operational and our new Brisbane distribution facility will go live before the end of the 2018 calendar year.”

The report says these investments are a key part of the company’s strategy to provide the most efficient warehousing and distribution facilities for its expanding portfolio of businesses.

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