Ebos Group lifts half-year revenue 13% and reaffirms earnings guidance

Medical supplies and petfood distributor Ebos Group reported strong revenue growth over the first half of the 2026 financial year. Photo / 123RF

One of Australasia’s largest healthcare and animal-care companies, Ebos Group, has reported a strong lift in revenue in its first-half result and reaffirmed its full year earnings guidance.

In the six months to December 31, 2025, Ebos Group reported total underlying revenue of A$6.768 billion, a lift of 13% from A$5.99b in the prior corresponding period.

Underlying earnings before interest, tax, depreciation and amortisation (ebitda) increased by 3.2% to A$300 million, consistent with guidance and commissioning of strategic investments.

But its underlying net profit after tax dipped 4.3% to A$125m.

Ebos’ healthcare revenue grew 11.1% to A$6.317b, while underlying ebitda grew by 1.3% to A$254m.

The company said this was completed “with strong revenue momentum and disciplined cost management”.

Its operating expenditure rose by 10.7% to A$491m but as a percentage of revenue it remained flat at 7.8% compared to the prior corresponding period.

The company said the revenue growth was driven by new customer wins and demand for GLP-1 weight-loss drugs and other high-value medicines as well as the expansion of its retail pharmacy brands and continued growth in medical technology.

Animal care also performed strongly with revenue increasing 48.3% to A$451m, while underlying ebitda increased 15.1% to A$68m, similarly driven by cost management initiatives and the successful acquisition of veterinary supplies company SVS and Next Generation Pet Foods.

Ebos Group chief executive Adam Hall said the company’s half-year performance demonstrated resilience and diversification of its portfolio.

“We delivered strong revenue growth and reaffirmed our ebitda guidance, supported by solid customer demand and the early benefits from our strategic investments,” Hall said.

“This sets us up well for H2 FY26, with additional opportunities from new stores and new products, as well as nearing the end of the current capital investment cycle.”

Hall said the company’s major distribution centre renewal programme was progressing to plan, with its largest site Symbion Kemps Creek in Sydney now fully operational.

Six of the company’s eight sites are now completed, with the remaining sites on track for operational completion within the financial year, with full network benefits expected to flow through progressively over the 2027 and 2028 financial years.

The company expects to realise “meaningful efficiency gains” as the centres come on board, and Hall anticipates a step-up in cashflows from the 2027 financial year now that peak investment is largely behind them.

“Overall, we remain confident in the medium-term margin outlook, underpinned by productivity improvements and new capacity in Symbion and healthcare distribution, product innovation within animal care, expansion of medical technology partners and solutions, as well as network-wide opportunities across retail pharmacy brands.”

Outlook

Looking ahead to the second half, Ebos Group has reaffirmed its 2026 full-year ebitda guidance, reflecting a positive outlook for the remainder of the year.

It expected revenue momentum to continue driven by growth across its pharmacy brands and innovation in its animal-care products business.

Ebos also expected capital expenditure to fall by around 30% on the completion of its distribution centre programme.

Chairwoman Elizabeth Coutts said: “The board remains confident in the strength of the group’s diversified earnings base and the medium to long-term outlook.

“The board has decided to maintain the interim dividend, consistent with our capital management priorities, and our continued confidence in the group’s outlook.”

The directors declared an interim dividend of 57c per share, imputed 25% for New Zealand tax resident shareholders and fully franked for Australian tax resident shareholders, to be paid on March 27, 2026.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

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