Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Ebos meets guidance as 1H profit more than triples

Ebos meets guidance as 1H profit more than triples, to overhaul executive team

Feb. 19 (BusinessDesk) – Ebos Group said first-half profit more than tripled, meeting its guidance after the acquisition of Symbion, and said its top executives would be replaced by managers of the Australian drug distributor and distributor.

Profit was $49.9 million in the six months ended Dec. 31, up from about $15 million a year earlier, the Christchurch-based company said in a statement. Sales jumped to $3 billion from $755 million. Ebos forecast a profit of $48.7 million on sales of $3.17 billion at its annual meeting in October.

The $1.1 billion cash and scrip Symbion purchase was a game-changer for Ebos, more than tripling annual revenue in a deal that gave Symbion’s owner Zuellig Group a cornerstone 40 percent stake in the New Zealand business and adding to the Hong Kong-based group’s 30 stake in chemist chain PharmacyBrands.

The results announcement marks a changing of the guard at the company that has grown through acquisitions to include medical products distribution, pet products and now pharmaceuticals with 19 acquisitions in 12 years. The shares rose 3.1 percent to $10 and have gained 156 percent in the past five years, almost twice the gains of the NZX 50 Index. It also listed on the ASX in the latest year.

Chairman Rick Christie will retire at the company’s annual meeting in October after 10 years in the role and will be replaced by chief executive Mark Waller.

In turn, Waller will be replaced as CEO by Patrick Davies, who had been CEO of Symbion and chief financial officer Dennis Doherty, who held off retiring pending the Symbion purchase, will be replaced by Symbion CFO John Cullity.

Christie called the changes “the right mix of continuity to maintain our strategic director, proven operational talent and a seamless transition, with an even stronger growth focus.”

Ebos will pay a first-half dividend of 20.5 cents a share on April 4, with a record date of March 14. That’s up from 17.5 cents a year earlier.

The company operates as two main divisions, healthcare and animal care. In the first half, revenue from healthcare soared to $2.8 billion from $673 million a year earlier, reflecting revenue from Symbion, while profit climbed to $52.2 million from $12.8 million.

Animal care, made up of the Procter & Gamble pet care, Eukanuba and IAMS pet food, and the Vitapet grocery brands acquired with the 2011 acquisition of Masterpet Group for $105 million plus debt, lifted sales to $177 million from $81 million and profit gained to $9.5 million from $6.4 million.

Gearing was a relatively mild 26.7 percent and Ebos said it has $390 million in undrawn bank facilities, giving it “significant headroom for future growth.”

The company said it assessed “a number of acquisition opportunities” in the first half though none met its shareholder returns criteria.

With the addition of Symbion, Ebos got A$2.09 billion of its revenue across the Tasman, while New Zealand sales accounted for $649.6 million. Profit from Australia was A$41.7 million and from New Zealand was $14.8 million.

That means the strength of the kiwi dollar against the Australian dollar is a major component of its results. The kiwi was recently at 91.95 Australian cents from 81.44 cents a year ago.

The currency “remains on our radar,” Ebos said in presentation slides today. It gave no specific guidance for the full year while noting that the trading mix has traditionally been skewed 52 percent-48 percent between the first and second halves.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news