EBOS Group (EBO) H1 2025 earnings summary

Executive summary

• Underlying revenue rose 9.5% to just under $6 billion and underlying EBITDA grew 7.1% to $291 million in H1 FY25, excluding the Chemist Warehouse Australia (CWA) contract and one-off costs, reflecting strong diversified growth.

• Statutory results declined year-over-year due to the loss of the CWA contract, but underlying performance remained robust.

• Interim dividend maintained at NZ 57.0 cents per share, signaling board confidence in future growth.

• Disciplined capital allocation with three investments in Southeast Asian medtech, including full ownership of Transmedic and acquisition of Pacific Surgical Inc.

• CEO John Cullity announced retirement effective 30 June 2025, with Adam Hall appointed as successor.

Financial highlights

• Underlying earnings per share was 67.5 cents; leverage ratio stable at 2.07x; net debt just over $1 billion.

• Net working capital decreased by $89 million year-over-year, reflecting the full release from the CWA contract.

• Cost savings of $15 million realized in H1, on track for $25–50 million per annum by FY26.

• Operating cash flow improved to $205 million, up $90 million from the prior period.

• Dividend payout ratio at 77.3%, with DRP available at a 2.5% discount.

Outlook and guidance

• FY25 underlying EBITDA guidance reiterated at $575–$600 million, representing 5–10% growth year-over-year, excluding CWA.

• Full-year guidance supported by 7.1% underlying EBITDA growth in H1.

• Continued focus on organic growth, operational excellence, and M&A, especially in Southeast Asia.

• Active M&A pipeline continues to be explored.