Ebos (ASX:EBO), a leading healthcare and animal products group operating across Australia and New Zealand, has reported a surge in both revenue and earnings, leading to a new record for the 12 months ending June 30. The company has raised its annual dividend by 14% in light of this impressive performance.
Revenue exhibited a 14% increase, reaching $12.2 billion, while underlying EBITDA experienced a notable rise of one-third, reaching $582 million. Additionally, underlying after-tax profit saw a 23% boost, totaling $281.8 million.
To reflect these accomplishments, a final dividend of 57 Australian cents was announced, bringing the full-year dividend to shareholders to $1.10 per share, marking a 14.6% increase.
Ebos attributed this elevated result to "continued strong performances from both our Healthcare and Animal Care segments."
Within the healthcare division, there was an almost 33% surge in underlying EBITDA, driven by organic growth and contributions from acquisitions finalised in the fiscal year 2022. LifeHealthcare's performance aligned with expectations.
The animal care segment experienced a 24% increase in underlying EBITDA, largely due to robust organic growth in key brands and the benefits derived from the new pet food manufacturing facility.
Ebos is a major player in the Australian healthcare sector, particularly through its Terry White chemists business, competing with the substantial Chemist Warehouse operation (which Ebos also supplies under a contract set to end by the conclusion of the 2023-24 financial year).
CEO John Cullity acknowledged that the record profit achieved in FY23 was driven by strong organic growth across the Group's businesses and substantial contributions from acquisitions made in previous years. He emphasised the defensive and diversified nature of the company's portfolio, which contributed to the robust performance of both the Healthcare and Animal Care segments.
In Australia, Healthcare revenue grew to $9.4 billion, while Underlying EBITDA reached $416.0 million, indicating respective increases of 15.3% and 27.5%. In New Zealand and Southeast Asia, Healthcare revenue reached $2.3 billion, and Underlying EBITDA surged to $101.0 million, showing increases of 11.6% and 59.7%, respectively.
The Animal Care segment generated revenue of $560.8 million and Underlying EBITDA of $99.1 million, demonstrating growth of 3.6% and 24.0%, respectively, compared to the previous year.
A significant challenge ahead is the impending loss of the supply agreement with Chemists Warehouse, effective from June 30, 2024. Despite this, the company is confident in its alternative growth strategies and anticipates another year of profitable growth in FY24.
