EBOS lifts net profit by 14 per cent to record A$185m, raises dividend

Ebos has reported its annual result to the NZX. Photo / File

EBOS said its business had proven to be resilient throughout the Covid-19 pandemic, with continued strong performances from its healthcare and animal care businesses driving its net profit up by 14 per cent to a record A$185.3 million in the June year.

Australasia's largest marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products said its revenue of A$9.2 billion (up 5 per cent), had exceeded A$9b for the first time.

EBOS declared a final dividend of NZ46.0 cents per share, bringing total dividends declared for the year to NZ88.5 cents per share, up 14.2 per cent.

Healthcare's underlying EBIT was up 11.4 per cent and Animal Care's EBIT gained 26.4 per cent.

EBOS said it expects to be able to generate further growth next year.

"The group's portfolio of businesses has proven to be very resilient throughout the
Covid-19 pandemic, however lockdowns in New Zealand and Australia are evidence of the material uncertainties that exist and that may impact upon the group's future trading performance," it said.

Capital expenditure next year was expected to remain elevated as a result of the completion of the new pet care manufacturing facility, which will result in additional expenditure of about $30 million over and above business-as-usual capex, it said.

EBOS said there would be significant capital investment in its animal care segment and a number of strategic acquisitions in its healthcare segment that further expand and diversify its earnings.

The company will invest about A$80m in a new state of the art pet food manufacturing facility in New South Wales.

Post balance date, EBOS acquired another medical devices distribution business that will expand its institutional healthcare division.

Shares in EBOS last traded at $32.30, up 90c or 2.9 per cent from Tuesday's close.