EBOS has reported strong earnings growth for FY24, driven by both organic expansion and strategic acquisitions.
However, according to its ASX statement, FY25 performance is expected to be impacted by the non-renewal of the Chemist Warehouse Australia (CWA) contract, which contributed approximately $2.2 billion in revenue in FY24.
Despite this, EBOS projects underlying EBITDA for FY25 to range between $575 million and $600 million, indicating growth of 5% to 10%, excluding the CWA contract (PD 06 Jun 2023).
Commenting on the results, EBOS CEO John Cullity expressed confidence in the company's growth strategies, citing the group's diversification as a key strength.
The growth drivers include robust performance in both the healthcare and animal care segments, increased community pharmacy revenue, and cost reduction initiatives, Cullity said.
"Our sales revenue exceeded $13 billion for the first time, reflecting strong performance within our community pharmacy and institutional healthcare divisions," commented Cullity.
EBOS stated that its community pharmacy revenue increased by $497.4 million (up 6.8%) and the gross operating revenue increased by $31.8 million (up 4.9%), driven by retail brands including TerryWhite Chemmart's expansion to 600 stores (PD 22 Jul).
Other reasons for the increase include new pharmacy wholesale customers who are supporting segment share growth, and increased volumes for high value specialty medicines.
Excluding revenue from COVID-19 related anti-viral medications, community pharmacy delivered normalised revenue growth of 8.6%, added EBOS.
EBOS also increased its holding in Transmedic to 90% and completed four small bolt-on acquisitions.
A further trading update for the first three months of FY25 will be provided in Oct. JG
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