Ebos Group, the healthcare and animal care products company, posted a 15 per cent gain in full-year profit, led by increased sales and an improved margin from its Australian healthcare businesses.
Profit rose to $105.9 million in the 12 months ended June 30, from $92 million a year earlier, the Christchurch-based company said.
Sales climbed 5.4 per cent to $6.1 billion, the first time revenue has exceeded $6 billion. Profit exceeded the $99.5 million forecast from brokerage Forsyth Barr.
Ebos transformed itself with the June 2013 purchase of Australian pharmaceutical wholesaler and distributor Symbion and the latest results "reflect the weight of that investment", said chief executive Patrick Davies.
The company will pay a final dividend of 25c a share, making 47c for the year, a 15 per cent gain on the previous year, and Davies said Ebos has the balance sheet strength to continue making acquisitions.
"I'm very confident about the year we're in," Davies said. "The group is so well placed on the back of this result to continue to pursue external opportunities, with the cash generation of this company, existing banking arrangements and a shareholder base that has shown they will support us if opportunities come along."
Operating cash flow in the latest year rose almost 20 per cent to a record $133.8 million. Gearing fell to 23.2 per cent from 24.4 per cent.
The company bought a stake in Australia's Good Price Pharmacy Warehouse and the BlackHawk Premium Pet Care pet food business in the 2015 year, while opening a pharmaceutical distribution centre in Melbourne and winning a contract to supply medical consumables to public hospitals in New South Wales.
Ebos' shares closed up 19c yesterday at $10.69.