26 Aug 2015

Ebos lifts full-year profit to over $100 million

2:45 pm on 26 August 2015

Ebos has lifted its full-year profit, driven by selling more to existing customers and acquisitions.

The healthcare distribution and animal care company made $105.9 million for the year to June, an increase of 15 percent compared with the previous year.

Revenue rose by 5 percent to a record high of $6.1 billion.

Ebos chief executive Patrick Davies said both its healthcare distribution and animal care businesses had enjoyed strong growth, in part due to higher margins.

"We started to see other income grow through services we offer to manufacturers and various other parties such as our pharmacy customers, where we charge different fees for different types of services"

Operating earnings rose 12 percent to $197 million, with four-fifths of that coming from Australia, though the high dollar against its Australian counterpart shaved $3.9 million off its operating profit.

Earnings at its healthcare arm, which makes up 85 percent of the total, rose 11 percent to $170 million, also helped by its quarter stake in Good Price Pharmacy Warehouse and opening a new distribution facility in Melbourne.

The animal care business enjoyed stronger growth due to its recently acquired Blackhawk pet food business, which it is using to help develop Ebos' own brands, while its Vitapet brand also grew.

The company lifted its full year dividend by 15 percent to 47 cents a share.

Looking ahead, Ebos expects more earnings growth in its healthcare and animal care arms, and it is still on the acquisition trail.