Pharmacy Daily | EBOS reports revenue, profit surge

EBOS Limited this morning released its financial results for the six months to 31 Dec 2022, with overall sales up 17% to $6.1b and a 30% increase in net profit after tax which reached $141.6m.

The company said the positive performance had come despite a range of challenges such as staff shortages and supply side constraints, and was a "testament to the combined efforts of our approximately 5,000 employees across New Zealand, Australia and Southeast Asia".

Underlying earnings in the healthcare division jumped 37.8%, driven by what EBOS said was its leading market positions and strong contributions from its Community Pharmacy, TerryWhite Chemmart (TWC), Institutional Healthcare and Contract logistics divisions and businesses.

Community pharmacy revenue was up 18.4% overall to $578.6m.

The company noted "above market growth" in ethical sales to major wholesale customers, as well as sales growth of high value specialty medicines.

There was also higher sales of COVID-19 related products including anti-viral medications and OTC cold and flu products.

"TWC further strengthened its position as Australia's largest health advice-oriented community pharmacy network by welcoming 26 new pharmacies during the period, taking the network total to greater than 540 stores nationally," the company noted.

Across the TWC network sales rose 18.6% in total, with 15.8% in like-for-like growth attributed to a continued focus and investment in catalogue and promotional programs as well as increases in media spend.

The development of a new myTWC app to make it easier for customers to order and manage medications and bookings also reinforced TWC's positive performance, the company said.

EBOS also noted a strong contribution from its Institutional Healthcare division, mainly driven by the five recent acquisitions including Pioneer Medical, Sentry Medical, MD Solutions and LifeHealthcare which together expanded the firm's presence in medical consumables and medical technology distribution.

The EBOS Board declared an interim NZ 53c per share dividend, saying the business expects another full year of profitable growth.

"EBOS' balance sheet is strong and we are well positioned to pursue new growth opportunities, in line with our strategic vision, and continue to deliver value to our shareholders and the communities we serve," the company said.