Paragon Care (PGC) H2 2025 earnings summary

Executive summary

• Achieved $3.6 billion in revenue and $95.2 million underlying EBITDA for FY 2025, reflecting an 8.3% revenue increase and 3% EBITDA growth year-over-year.

• Completed integration of ParagonCare, CH2, and Oborne Health Supplies under a unified strategy, with JDE ERP integration on track for FY26.

• Launched new business units in Aesthetics, Robotics, and Dental, and expanded distribution partnerships across Asia-Pacific.

• Secured a $400 million debt facility with no earnings or leverage-based covenants, supporting ongoing growth and integration.

Financial highlights

• Underlying EBITDA reached $95.2 million, up $2.8 million from the prior year; statutory EBITDA was $88.5 million.

• Net profit after tax was $31.2 million underlying and $20.6 million statutory.

• Gross margin dollars increased 8% to $324 million; margin rates remained stable.

• Free operating cash flow was -$11 million, impacted by delayed receivables from a major retail pharmacy group.

• Contract logistics sales up 25% to $336 million; clinical manufacturing sales up 9% to $25 million.

Outlook and guidance

• Revenue and profit expected to grow in FY 2026, with profitability improving as synergies are realized.

• Revenue growth for FY 2026 anticipated in the mid-single digits, not matching the 8% of FY 2025.

• Focus on organic growth, integration, and expansion in Asia-Pacific, with a strong M&A pipeline.

• Directors to revisit dividend policy in FY 2026; further trading updates to be provided at the AGM.