EBOS Group (EBO) H2 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of AUD 13.2 billion, up 7.8%, with underlying EBITDA up 7.3% to AUD 624.3 million and underlying NPAT up 7.7% to AUD 303.4 million.

• Underlying EPS increased 6.8% to 157.9 cents; final dividend declared at NZD 0.615 per share, full-year dividend up 7.7% to NZD 1.185 per share.

• Positive FY25 guidance for underlying EBITDA of AUD 575–600 million, representing 5–10% normalized growth excluding the Chemist Warehouse Australia (CWA) contract.

• Robust results in Healthcare and Animal Care segments, supported by organic growth, cost efficiencies, and strategic acquisitions including Superior Pet Food Co. and increased Transmedic stake.

• Continued investment in infrastructure and expansion outside New Zealand and Australia remain strategic priorities.

Financial highlights

• Revenue increased 7.8% year-over-year to AUD 13.2 billion; Healthcare up 8.0%, Animal Care up 3.2%.

• Underlying EBITDA margin slightly decreased to 4.73%; statutory NPAT was AUD 271.5 million, up 7.2%.

• Underlying EPS up 6.8% to 157.9 cents per share; statutory EPS up 6.3% to 141.3 cents.

• Final dividend of NZD 0.615 per share; total FY24 dividend NZD 1.185 per share, payout ratio 69.5%.

• ROCE at 15.3%; Net Debt:EBITDA at 1.89x as of June 2024.

Outlook and guidance

• FY25 underlying EBITDA guidance of AUD 575–600 million, representing 5–10% normalized growth excluding CWA contract.

• Targeting AUD 300 million in new pharmacy revenues and AUD 25 million in cost savings in FY25.

• No material contribution from FY24 acquisitions included in FY25 guidance; further acquisitions not factored in.

• ROCE expected to decline in FY25 but targeted to return to 15% in the short to medium term.

• July 2024 trading showed positive growth, supporting FY25 guidance.