Ebos lifts first half net profit to a record A$92.9 million

Ebos reported a record first half profit, due in part to a 25 per cent lift in earnings from its animal care business as people spent more time with their pets during Covid-19 lockdowns. Photo / Supplied

Australasian healthcare products distributor Ebos Group said strong performances in its healthcare and animal care segments helped drive its first half profit up by 13.7 per cent to A$92.9 million ($100m), leading to a 13.3 per cent gain in its interim dividend.

The company said is animal care division reported underlying Ebit lift of 25.6 per cent, in part driven by people spending more time with their pets during Covid-19 lockdowns.

Total revenue rose by 6.3 per cent A$4.65 billion.

The company declared an interim dividend of NZ42.5 cents per share, up from NZ37.5c a year earlier.

Chief executive John Cullity said the double-digit earnings growth reflected a continuation of the strong first-quarter momentum that it announced at the company's annual meeting last October.

"Both our Healthcare and Animal Care segments recorded very strong growth and contributed to the overall result," he said.

The result reinforced the strength of the company's diverse portfolio of businesses, Cullity said.

"The growth of our Healthcare segment was pleasing given that it cycles and further builds upon our record result achieved in 2020, which was driven primarily by increased Community Pharmacy wholesale volumes," he said.

Each of the Community Pharmacy, TerryWhite Chemmart, Institutional Healthcare and Contract Logistics businesses contributed to the increase in earnings.

The Animal Care segment's outstanding performance was driven by the company's Black Hawk, Vitapet, Accessory Products and Lyppard businesses all achieving double-digit sales growth.

This was underpinned by the strength of its brands and market positions, combined with the strong tailwinds of the pet care market.

"Covid-19 has further accelerated these trends as people have spent more time at home with their pets," he said.

Ebos has continued its strategy of investing for growth, with two acquisitions completed in the first half of the 2021 financial year.

The Cryomed acquisition in the medical devices sector and the acquisition of CH2's vet distribution business each strengthen the company's existing presence in those sectors and were earnings accretive to Ebos shareholders.

Ebos says it is the largest and most diversified marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products in Australasia.

It is also a leading marketer and distributor of recognised consumer products and animal care brands.

The dual-listed company's shares last traded on the NZX at $29.70, up 53c from Tuesday's close.