Ebos increases profit 8% to $149.6m

PHARMACEUTICAL and animal health products company Ebos Group has reported an 8% rise in aftertax profit to $149.6 million.

Forsyth Barr broker Lyn Howe said the profit rise was in line with expectations and a key highlight was that operating cash flow was ‘‘strong’’, having risen 22%.

‘‘Underlying growth was fairly consistent across the key divisional units, with institutional health care boosted by the the recent HPS acquisition,’’ she said.

Ebos shares, up almost 20% on a year ago, closed down 1c to $20.99.

Revenue for the full year to June eased from $7.62 billion to $7.60 billion, while earnings before interest, tax, depreciation and amortisation (ebitda) increased 12.8% to $272.4 million.

BusinessDesk reported Ebos’ healthcare business lifted its ebitda profit margin to 3.28% from 2.9%, while the animal care unit expanded margins to 12.08% from 10.57%.

Ebos has lifted ebitda 55% since 2014 as it pursued acquisitions across New Zealand and Australia and has invested $33.6 million on in the past year.

Its investments included a 14% stake in Australia’s leading digital medication management company, MedAdvisor, the acquisition of New Zealand’s leading footcare consumer brand, Gran’s Remedy, and the purchase of the management company of Australian pharmacy retail group Ventura Health.

In addition, it integrated HPS, Australia’s largest provider of outsourced pharmacy services to hospitals, which it bought at the end of the last financial year, and launched its premium petfood brand Black Hawk into the New Zealand market. — Additional reporting: BusinessDesk