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


Ebos profit soars in first full year of Symbion

Ebos profit soars in first full year of Symbion, sees growth in 2015

By Suze Metherell

Aug. 26 (BusinessDesk) - Ebos Group, the healthcare and animal care manufacturer, posted full-year profit that almost tripled on a full 12-month contribution from the Symbion pharmaceutical wholesaler and distributor in Australia.

Net profit was $92.1 million, or 62.8 cents a share, in the year ended June 30, from $28.2 million, or 46.8 cents, a year earlier, the Christchurch-based company said in a statement. Sales jumped 216 percent to $5.76 billion.

The $1.1 billion cash and scrip Symbion purchase in June 2013 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. Australia now makes up 78 percent of sales and 80 percent of pretax earnings for the group and in the latest year revenue from across the Tasman got a lift from the relative strength of the kiwi dollar.

Healthcare earnings before interest, tax, depreciation and amortisation rose 212 percent to $153 million, although the earnings margin slipped to 2.8 percent from 3 percent. The company's animal care division reported a 100 percent jump in sales to $338.9 million and a 58 percent increase in Ebitda to $29.4 million, while the Ebitda/revenue margin shrank to 8.7 percent from 11 percent.

Sales at the company's Australian pharmacy business were little changed from a year earlier, which the company said was a good outcome given the Australian government's price reforms under its Pharmaceutical Benefits Scheme.

"The breadth of Symbion’s healthcare businesses has enabled the company to further grow its profitability even after allowing for the impact of the Australian Government’s PBS price reforms," said managing director Mark Waller, delivering his final results before stepping down from the role.

"Whilst we face on-going regulatory challenges in our pharmacy markets we have always demonstrated innovative ways to generate earnings growth and we are confident that our management team can continue the company’s strong track record of growth into FY15," the company said.

Patrick Davies is taking up the role of chief executive.

The company will pay a final dividend of 20.5 cents a share on Oct. 17, imputed at 35 percent. That takes payments for the year to 41 cents.

Shares of Ebos last traded at $9.45 and have slipped 2.6 percent this year while the benchmark NZX 50 Index rose 9.7 percent. The stock is rated a 'hold' based on the consensus of five analysts polled by Reuters, with a median price target of $10.29.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news