EBOS targeting new pharmacy revenue, cost savings
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The news: EBOS Group says it is targeting new revenues in light of the changed dynamics of the Australian community pharmacy industry and outlined plans for cost savings.
The numbers: Christchurch-headquartered EBOS, which operates more than 600 stores in its TerryWhite Chemmart network, said it will target NZD300 million ($271 million) in new pharmacy revenues in Australia.
EBOS’ community pharmacy business recorded revenue growth of 6.8% or nearly NZD500 million in FY24. The company also said it has identified between NZD25 million and NZD50 million of cost savings over FY25 and FY26..
The context: The company's chief executive John Cullity told shareholders at the annual general meeting that EBOS had a solid start to the year with underlying earnings up 7.5% in the three months to September.
This was adjusted to exclude the earnings from the Chemist Warehouse Australia contract, which EBOS lost to rival Sigma Healthcare following its merger deal with the retail pharmacy chain.
EBOS said it will continue to pursue strategic acquisitions and sees many opportunities across its healthcare and animal care segments to further broaden the group’s scale.
It reaffirmed FY25 earnings guidance for underlying EBITDA of NZD575 million to NZD600 million.
The source: ASX announcement
