20 Aug 2020

Ebos profits up 16%

12:01 pm on 20 August 2020

Ebos has posted a strong rise in profit as its businesses benefited from a sales boost because of the pandemic.

A file photo of a dog.

Ebos makes pet food products, among other businesses. Photo: zinkevych/123RF

Net profit was up 16.5 percent to $A168.3 million for the year ended June, with revenue rising 26.5 percent to $A8.8 billion.

The healthcare and animal products company owns a wide range of businesses in wholesale and retail pharmaceutical supplies, health supplements such as Red Seal, pet foods and the Animates retail chain, and has a track record of double digit growth on the back of buying and quickly selling businesses.

"As a provider of essential healthcare and consumer products and part of the region's critical medical supply chain, we have remained operational throughout the Covid-19 pandemic and have continued to serve our customers and provide employment to our employees," chief executive John Cullity said.

The result was boosted by huge sales growth in its healthcare businesses.

"Our Community Pharmacy business recorded a very strong performance reflecting the benefits from increased scale as we successfully commenced wholesale distribution of the Chemist Warehouse volumes," Cullity said.

The company had invested to support the growth of its consumer products business with a new distribution facility in Auckland.

It said this would allow it to increase capacity to make and sell Red Seal toothpaste locally and abroad.

Ebos said it had a strong balance sheet with approximately $A400-450m available for further acquisitions that aligned with its growth strategy.

Shareholders have been rewarded by an 8 percent increase in dividends to 40 cents a share.