Acquisitions boost Ebos

Ebos Group’s recent acquisitions helped the pharmaceutical and animal health products maker lift firsthalf profit 7.2 per cent, fatten its dividend to shareholders and bolster its annual earnings outlook.

Net profit rose to $68.8 million in the six months ended December 31 from $64.2m a year earlier, the Christchurch-based company said. Revenue climbed 21 per cent to $3.96 billion.

Ebos said profit would have been $3.7m higher had the Kiwi dollar not appreciated against its Australian counterpart, and it upgraded annual guidance for underlying profit to be at the upper end of a previous projection for growth of 7-to-10 per cent.

Chief executive Patrick Davies said the firm’s diverse portfolio helped offset any softness in some areas of the group.

Ebos transformed itself in 2013, buying Australian pharmaceutical wholesaler and distributor Symbion, its biggest-ever deal.

It has since bought New Zealand vitamin and herbal tea maker Red Seal, pharmaceuticals firm Zest, Aus- tralian pharmacy retailer Good Price Pharmacy Warehouse, the BlackHawk Premium Pet Care pet food business, and more recently merged its Australian Chemmart pharmacy chain with rival Terry White Group.

Davies said Ebos is ready to make new investments, chiefly by managing a strong balance sheet.

The company’s net debt shrank to $288.1m as at December 31 from $379.3m a year earlier, or a ratio to earnings of 1.25 times down from 1.8 times.

The board declared an interim dividend of 30c per share, up 15 per cent from a year earlier, payable on April 7 with a March 17 record date.