EBOS Healthcare this morning released its results for the 12 months to 30 Jun, with overall revenue of $12.2 billion and a 25% increase in net profit after tax which increased to $253.4 million.
The company said the results were underpinned by organic growth as well as substantial contributions from prior year acquisitions, reflecting the "defensive and diversified nature of Group earnings".
The Healthcare segment had strong contributions from the Community Pharmacy, TerryWhite Chemmart, Institutional Healthcare and Contract Logistics divisions and businesses, EBOS said.
Community Pharmacy revenue increased by $870 million (13.5%), driven by customer growth, strong performances from retail brands including TerryWhite Chemmart, above-market growth in ethical sales to major wholesale customers, and sales growth of high-value specialty medicines and OTC products, EBOS has reported.
The result also benefited from COVID-19-related product sales including antiviral medications and cold and flu OTC products.
"Our TWC franchise continues its robust growth, with an additional 40 new pharmacies joining the network during the year," EBOS said.
"This builds on growth in prior years and further strengthens TWC's position as Australia's largest health-advice-oriented community pharmacy network with over 550 trading stores," the company added, with TWC network sales growing to over $2 billion.
EBOS noted the pending impact of the 60-day dispensing policy, but said the Australian Government had indicated it will increase the Community Service Obligation funding pool and introduce other initiatives in support of the Community Pharmacy sector "which will largely offset the earnings impact of this policy change".
The company also noted the non-renewal of its massive Chemist Warehouse contract from 30 Jun 2024 (PD 06 Jun), but noted that between FY20 and FY23 overall earnings excluding Chemist Warehouse grew 20% annually, "reflecting strong alternative sources of growth".
The company declared a 57c per share dividend, and stated it expects "another year of profitable growth in FY24".
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