Paragon Care (PGC) investor relations material

Executive summary

• Revenue reached $3.7 billion, up 1.8% year-over-year, with underlying EBITDA of $97.2 million and underlying NPAT of $26.0 million; statutory NPAT was a loss of $16.0 million due to a significant provision for Infinity Group debt.

• Completed the 3-2-1 strategy merger and integration of Paragon, CH2, and Oborne Health Supplies, delivering cost synergies and expanding Asian operations through six acquisitions.

• Strong organic revenue growth of 6.7% after normalisations, driven by ANZ Wholesale, Contract Logistics, and Asia Med Tech.

• Leadership team is fully in place, with a focus on driving growth and operational excellence.

• Business faced headwinds from fuel costs, FX volatility, and higher inventory levels due to supply chain disruptions.

Financial highlights

• Underlying revenue: $3.7 billion (up 1.8% year-over-year); underlying EBITDA: $97.2 million (up 2.1%); underlying NPAT: $26.0 million (down 13.6%).

• Statutory EBITDA: $50.8 million (down 42.6%); statutory net loss: $16.0 million, mainly due to a $34.9 million provision for Infinity.

• Organic revenue growth after normalisations (Infinity, Ramsay, FX): 6.7%.

• Normalized EBITDA growth: 7.4% after adjusting for acquisitions, fuel, storage, and FX.

• Cash from operating activities improved to $29.1 million, up 317% year-over-year.

Outlook and guidance

• Focus for FY27 is on organic growth, consolidating recent acquisitions, and expanding in Asia and new markets.

• Capital expenditure will return to normalized levels after a heavy investment year.

• Share buyback program and Employee Share Trust to commence in FY27; no dividend for FY26, with review deferred pending Infinity debt recovery.

• Cautious on providing detailed outlook due to ongoing fuel cost volatility and macroeconomic uncertainties; mid-single digit revenue growth expected.