Record earnings for EBOS

EBOS Group this morning announced a net profit after tax of NZ$149.6 million for the twelve months to 30 Jun, with the result reflecting “a year of strong organic growth combined with the added benefit of a number of strategic acquisitions”.

Overall revenue was stable at $7.6 billion, with net profit after tax up 12.2% and ceo John Cullity reporting a “consistent positive momentum” across the business.

The company’s Australian revenues declined 4.4%, driven mainly by a $364 million drop in hepatitis C medicine sales.

Excluding this impact, sales revenue rose 2.1% or $104 million, with earnings growth boosted by a full year contribution of HPS, which is “performing solidly and in line with expectations”.

In the community pharmacy business, revenue growth was 1.4% excluding hepatitis C medicines and acquisitions, moderated by the ongoing impact of PBS reforms.

Sales in the OTC channel were marginally above the prior year, reflecting the ongoing challenging retail environment.

“EBOS maintained its market leading positions in both the Australian and NZ Institutional markets, delivering further earnings growth,” the company said.

Consumer products recorded solid revenue growth of 11.1%, driven by a strong NZ performance of the Red Seal range of teas, toothpastes and supplements as well as the Mar 2018 acquisition of Gran’s Remedy.

During the year capital expenditure was $63.2 million, including $24.6m on the new highly automated distribution facility in Queensland, and $14.6m on the new EBOS contract logistics operation in Sydney.

Other activity during the year included the purchase of a 14.1% stake in listed digital medication management firm MedAdvisor, while the various EBOS Animal Care businesses also performed well.

In terms of outlook, the company said it was “confident of further profit growth into FY19”.