EBOS posts 21% drop in full-year profit, targets 7% earnings growth
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The news: Pharmaceutical wholesaler EBOS Group reported a 20.8% slide in full-year statutory net profit after tax to $215 million as the company flagged a "material adjustment to business volumes" during the period.
The numbers: The Christchurch-based company saw a decline on last year's result of $272 million, and missed market estimates of $250.5 million, according to Visible Alpha.
Revenue was down 7% year on year to $12.3 billion, as underlying EBITDA fell 6.3% to $585 million. This was within its underlying EBITDA range of $575 million and $600 million. The company has guided underlying EBITDA of $615 million to $635 million for FY26, reflecting 7% growth at the midpoint.
EBOS declared total dividends of 118.5 NZ cents per share, the same as last year. Analysts had expected a full-year payout of 111 NZ cents per share.
The context: The company said it remains well-positioned for long-term growth, citing positive healthcare and animal care industry trends. However, it warned of near-term macro pressures, including a competitive wholesale pharmacy environment, soft hospital capital spend, and subdued consumer sentiment impacting discretionary pet categories.
What they said: "Despite a material adjustment to business volumes, EBOS continued to deliver a strong underlying performance," said EBOS chair Elizabeth Coutts.
"The board has maintained the dividend at the same level as FY24 and the increased payout ratio reflects the board's confidence in the group's growth outlook and overall financial capacity."
