Ebos raises first half profit by 15.8% to record A$109.3m

Medical supplies company EBOS has reported a record first half profit. Photo / File

Dual-listed Ebos Group said strong revenue growth in its key healthcare and animal care businesses drove its underlying net profit up by 15.8 per cent to a record A$109.3 million ($118m) in the six months to December.

The diversified Australasian wholesaler of healthcare, medical and pharmaceutical products said its revenue lifted by 12.8 per cent to A$5.3 billion.

The company said it would raise its interim dividend by 10.6 per cent to NZ47c per share.

Ebos's statutory net profit rose by 9.7 per cent to A$101.9m - after A$7.4m of merger and acquisition costs.

The group completed three acquisitions during the period to expand its institutional healthcare division, including Sentry Medical, Pioneer Medical and MD Solutions.

Ebos also reached an agreement to acquire LifeHealthcare, which it said would establish the company as a leading distributor of medical devices in Australia, New Zealand and Southeast Asia.

The company had also commenced the commissioning phase of its new pet food manufacturing facility in Parkes, New South Wales.

Ebos chief executive John Cullity said the healthcare and animal care segments continued their strong growth trajectory.

"The strong growth of our Healthcare segment was driven by our Community Pharmacy, TerryWhite Chemmart, Institutional Healthcare and Contract Logistics businesses," he said.

"The Community Pharmacy division's performance was particularly pleasing, resulting from customer growth, market share gains and the return of Pfizer's retail pharmacy volumes to the wholesale channel."

Cullity said Ebos continues to be comfortable with current trading conditions "however, it is uncertain what the ongoing disruptions caused by Covid-19 variants will have on Ebos' trading performance".

He said the company's capital expenditure for the remainder of 2022 is expected to remain elevated.

Ebos expects the acquisition of LifeHealthcare will be completed before the end of its 2022 financial year.

Shares in Ebos last traded on the NZX at $39.47 - up $1.45 or 3.8 per cent from Tuesday's close.