Paragon Care (PGC) H2 2025 earnings summary

Executive summary

• Achieved $3.61 billion in revenue and $95.2 million underlying EBITDA for FY25, reflecting an 8.3% revenue increase and 3% EBITDA growth year-over-year, driven by strong pharmacy, contract logistics, and Asia-Pacific performance.

• Completed integration of ParagonCare, CH2, and Oborne Health Supplies under a unified strategy, with full JDE ERP integration on track for FY26.

• Launched new business units in Aesthetics, Robotics, and Dental, and expanded distribution partnerships across Asia-Pacific.

• Secured a $400 million debt facility with ScotPac, supporting ongoing growth and integration, with no earnings or leverage-based covenants.

• Achieved $5 million in annualized synergies in FY25, targeting $12 million in FY26.

Financial highlights

• Underlying EBITDA reached $95.2 million, up 3% year-over-year; statutory EBITDA was $88.5 million.

• Underlying NPAT (excluding PPA) increased 9.5% to $31.2 million; statutory NPAT at $20.6 million.

• Gross margin dollars increased 8% to $324 million; margin rates remained stable.

• Free operating cash flow was -$11 million, impacted by delayed receivables from a major retail pharmacy group.

• Expenses rose 10% year-over-year, mainly due to wage, insurance, and freight costs, and integration pressures.

Outlook and guidance

• Revenue and profitability expected to improve in FY26 as full merger synergies are realized, with a focus on organic growth, operational efficiency, and APAC expansion.

• Revenue growth for FY26 anticipated in the mid-single digits, not matching the 8% of FY25.

• Directors to revisit dividend policy in FY26; no dividend declared for FY25.