EBOS upbeat on Chemist Warehouse

EBOS says it is preparing for its “next wave of growth” in the 2019/20 financial year, after commencing its new exclusive pharmaceutical distribution agreement with Chemist Warehouse on 01 Jul.

Releasing the company’s annual results yesterday (PD breaking news), EBOS CEO, John Cullity (pictured), said the last 12 months had set the stage for expansion.

“We commenced operation in two brand new facilities in Brisbane and Sydney, providing further warehouse capacity.

“We also moved to 100% ownership of TerryWhite Chemmart, signed the Chemist Warehouse Group pharmaceutical contract and retained Blooms The Chemist, one of our largest independent pharmacy group customers.

“These were all great outcomes for our Community Pharmacy division,” he enthused.

The company’s Healthcare division contributed the lion’s share of the business, with total revenue of NZ$6.5 billion, compared to the Animal Care operations which turned over about $382m.

Cullity cited “solid growth” within the Australian business, with Healthcare revenue declining by 3.5% or $183 million.

“However excluding the impact of the reduction in hepatitis C sales and the impact of PBS price reforms, revenue growth was +5.2%,” he said.

Revenue growth in community pharmacy, excluding hepatitis C and PBS reforms, was 3%.

EBOS maintained its market leading positions in both the Australian and New Zealand Institutional Healthcare markets, Cullity said, delivering further earnings growth which was assisted by a boost in sales of specialy medicines.

“The group’s acquisition of Warner & Webster, which has operations in both Victoria and South Australia, has grown our share of the medical consumables market,” Cullity noted.

The Consumer Products division also performed well, with revenue growth of 4.9% which partly reflected the acquisition of the Quitnits head lice brand.

EBOS Consumer Products also recently commenced operations as the exclusive specialist distribution partner for the Philips Avent product portfolio in Australia.

Cullity said he was pleased the recent CSO Review conducted by the Health Department in Australia had recognised the importance of the wholesale sector.

“The financial stability of the industry is at a critical juncture, with wholesalers being significantly impacted by PBS reforms,” he said, with hopes the issues will be resolved as part of the negotiation of the 7th Community Pharmacy Agreement.