Half Year Results
17 February 2021
MARKET RELEASE
NZX/ASX Code: EBO
EBOS 2021 Half-Year Results
EBOS REPORTS ANOTHER RECORD RESULT AND DOUBLE-DIGIT NPAT GROWTH
Key highlights of the first half included:
• Revenue of $4.7 billion (up 6.3%);
• Statutory Net Profit after Tax (NPAT) of $92.9 million (up 13.7%);
• Underlying Net Profit after Tax (Underlying NPAT)
of $94.3 million (up 14.2%);
• Interim dividend declared of NZ 42.5 cents per share (up 13.3%);
• Very strong performances from both our Healthcare and Animal Care segments, with
Healthcare’s Underlying EBIT up 11.2% and Animal Care’s EBIT up 25.6%;
• Excellent operating cash flow of $98.7 million (up 33.0%);
• Acquisition of CH2’s vet distribution business for approximately $9 million, which further
strengthens Lyppard’s market position in this sector. This adds to the previously announced
acquisition of Cryomed, which further expands our medical devices business; and
• Further strengthening of our balance sheet, with Net Debt : EBITDA reducing to 1.00x (1.11x
at June 2020). Following further refinancing initiatives in August 2020 and February 2021,
EBOS has no debt maturities until 2H FY23.
A$
1
Statutory Results Underlying Results
Total Revenue $4,653.3m up 6.3% $4,653.3m up 6.3%
EBITDA $182.2m up 9.0% $184.1m up 9.3%
EBIT $145.9m up 11.1% $147.8m up 11.5%
Net Profit after Tax $92.9m up 13.7% $94.3m up 14.2%
Earnings per Share 56.9 cents up 12.3% 57.8 cents up 12.7%
Operating cash flow $98.7m up 33.0% n/a
ROCE n/a 17.5% up 0.4%
2
Net Debt : EBITDA
3
n/a 1.00x down 0.11x
2
Interim Dividend NZ 42.5cps up 13.3% n/a
1
All amounts included are denoted in Australian dollars unless otherwise stated.
2
Compared to June 2020.
3
Calculated in accordance with banking covenants.
2
EBOS Group Limited (“EBOS” or the “Group”) today announced another record result for the first half
of the 2021 financial year, including double-digit NPAT growth.
In today’s results announcement, EBOS Chief Executive Officer, John Cullity said:
“It is pleasing to report another record profit for EBOS for the first half of FY21. Our double-digit
earnings growth reflects a continuation of the strong first quarter momentum that we announced at
our Annual Meeting in October 2020.”
“Both our Healthcare and Animal Care segments recorded very strong growth and contributed to the
overall result. This again reinforces the strength of our diverse portfolio of businesses.”
“The growth of our Healthcare segment was pleasing given that it cycles and further builds upon our
record result achieved in FY20, which was driven primarily by increased Community Pharmacy
wholesale volumes. In this period, each of our Community Pharmacy, TerryWhite Chemmart
(“TWC”), Institutional Healthcare and Contract Logistics businesses have contributed to the increase
in earnings.”
“The Animal Care segment’s outstanding performance was driven by our Black Hawk, Vitapet,
Accessory Products and Lyppard businesses all achieving double-digit sales growth. This was
underpinned by the strength of our brands and market positions, combined with the strong tailwinds
of the pet care market. COVID-19 has further accelerated these trends as people have spent more
time at home with their pets.”
“EBOS has continued its strategy of investing for growth, with two acquisitions completed in the first
half of the 2021 financial year. The Cryomed acquisition in the medical devices sector and the
acquisition of CH2’s vet distribution business each strengthen our existing presence in those sectors
and are EPS accretive to EBOS shareholders.”
In commenting on today’s result, EBOS Chair, Elizabeth Coutts said:
“Despite the significant challenges of 2020, EBOS has remained committed to our proven strategy of
driving organic growth in our leading Healthcare and Animal Care businesses in New Zealand and
Australia, combined with disciplined capital management. This enables investing for growth through
complementary acquisitions and capital investments, as well as paying increasing dividends to our
shareholders.”
“In the view of the Board, it is this adherence to our core business strategy that has ensured EBOS
has maintained our unwavering commitment to delivering the highest standards of customer service
and increased returns for shareholders.”
3
Healthcare
Healthcare
A$
31 December
2021
31 December
2020
Growth
Revenue $4,409.5m $4,165.5m 5.9%
Statutory EBIT $126.9m $114.6m 10.7%
Underlying EBIT¹ $128.8m $115.8m 11.2%
¹ Underlying EBIT excludes the impact of one-off adjustments.
Our Healthcare segment generated revenue of $4.4 billion and Underlying EBIT of $128.8 million, an
increase of 5.9% and 11.2% on the prior corresponding period. This growth was driven by the
performances of our Community Pharmacy, TWC, Institutional Healthcare and Contract Logistics
businesses.
In Australia, Healthcare revenue increased to $3.5 billion and Underlying EBIT increased to $108.5
million, an increase of 5.5% and 11.3% respectively. This growth is pleasing given that it cycles and
further builds upon our record result achieved in FY20, which was driven primarily by increased
Community Pharmacy wholesale volumes.
In New Zealand, Healthcare revenue increased to $896 million and Underlying EBIT increased to
$20.3 million, an increase of 7.4% and 11.0% respectively. This strong growth is also pleasing as it
represents a rebound following a softer result in FY20.
Community Pharmacy revenue increased by $121.9 million (up 4.8%) due to continued above market
growth by major wholesale customers and further productivity improvements across all sites,
particularly from our Brisbane distribution facility.
TWC welcomed 22 new pharmacies during the period, which is the largest six month increase of
network stores on record. This builds on store growth in previous periods and further strengthens
TWC’s position as Australia’s largest health-advice oriented community pharmacy network. TWC
network sales grew by 5.8% and on a like-for-like basis increased by 4.2%. This performance was
driven by new store growth, continued increases in media spend (up 40% in the first half) and
improved promotional and category initiatives.
Institutional Healthcare continued to perform well with first half revenue growth of $108.4 million
(up 8.7%), largely from increases in demand for new specialty medicines, combined with strong
growth in the medical consumables sector and a further acquisition in the medical devices sector.
In October 2020, EBOS acquired Cryomed for approximately $14 million. Cryomed was established in
2013 and markets and distributes medical devices and consumables used in aesthetic procedures in
Australia and New Zealand. This represents our second acquisition in the medical devices sector and
we will continue to pursue growth opportunities through further bolt-on acquisitions, with the
objective of building a significant business for EBOS in this sector. As a truly independent partner we
4
can provide long term growth opportunities to both existing and new Original Equipment
Manufacturers as we bring our experienced management, capital resources and strong hospital
relationships to the Australian and New Zealand markets.
Contract Logistics increased Gross Operating Revenue (“GOR”) by $4.7 million (up 12.0%),
attributable to existing customer growth and increased volumes in New Zealand to service customer
requirements mainly for personal protective equipment and COVID-19 testing kits.
Consumer Products revenue declined by $5.8 million (down 10.1%). Our performance was impacted
by COVID-19 with lower retail and daigou sales and category declines. The business is pursuing a
range of customer and product initiatives to restore performance both domestically and in overseas
markets.
Animal Care
Animal Care
A$
31 December
2021
31 December
2020
Growth
Revenue $243.8m $210.6m 15.7%
EBIT $30.7m $24.5m 25.6%
Our Animal Care segment generated revenue of $243.8 million and EBIT of $30.7 million, an increase
of 15.7% and 25.6% respectively on the prior corresponding period.
The Animal Care segment continues to benefit from the strength of our trusted brands and market
positions, combined with the strong tailwinds of the Australian and New Zealand pet care market.
Well established market trends including increasing pet ownership, the humanisation of pets,
premiumisation of products and increased use of outsourced services, have been driving structural
growth in the pet care market for several years. These trends accelerated further as a result of
COVID-19, resulting in people spending more time at home with their pets.
Our key brands, Black Hawk and Vitapet, both recorded strong increases in revenue, up 11.8% and
11.4% respectively. Black Hawk increased market share in New Zealand and Vitapet increased market
share in Australia, benefiting from continued marketing investment. In addition, our Accessory
Products category brands generated strong sales growth, benefitting from the launch of new
products such as flea treatment.
In November 2020, EBOS acquired the vet distribution business of CH2 for approximately $9 million
and integrated it with Lyppard, our Australian vet wholesaling business. This acquisition further
consolidates Lyppard’s position in the Australian vet distribution market.
5
Community
EBOS is committed to meeting community expectations with our behaviour and actions reflecting
positively in the communities where we operate.
In 2020, EBOS commenced the process of implementing a formal Environmental, Social and
Governance (“ESG”) Program to ensure we measure and build on our ESG responsibilities. This
process has included consultation with a broad range of internal and external stakeholders in both
New Zealand and Australia to gain a greater understanding of the expectations of what a robust ESG
Program should deliver.
As an organisation, we acknowledge that we have a responsibility to our stakeholders and the wider
community to conduct our business in a socially responsible manner and act as a good corporate
citizen. Importantly, the way in which we articulate, deliver, and measure this activity drives
perceptions, opinions and trust among key stakeholders and the community and ultimately ensures
we maintain our social license to operate.
Under the guidance of the Board and an ESG Steering Committee, our ESG Program will formalise
these responsibilities, ensuring we have a strategic, measurable and accountable framework in place
moving forward. We will continue to develop our ESG Program, which is to be finalised in the second
half of 2021.
The first half of the FY21 year also marked the introduction of EBOS’ first Reconciliation Action Plan
(“RAP”), which formalises our commitment to reconciliation between Aboriginal and Torres Strait
Islander peoples and the broader Australian population.
Developed in consultation with Reconciliation Australia, our RAP sets out EBOS’ vision to develop
greater organisational awareness and understanding of Australia’s First Peoples history and cultures
and to create a society that is fair, equal and just for all.
Our RAP incorporates clear guiding principles for our journey of reconciliation, ensuring that we turn
our vision into meaningful actions and outcomes as we together work toward a more reconciled
Australia. In November 2020 the company celebrated our first NAIDOC Week, featuring a number of
informative activities aimed at gaining a deeper understanding of the history and culture of
Aboriginal and Torres Strait Islander Australians.
COVID-19 Update
In what is a dynamic and ever changing environment EBOS continues to stringently follow the COVID-
19 protocols and advice of the local authorities relevant to our New Zealand and Australian locations
and operations.
6
Currently, the majority of EBOS employees are working on site albeit in some instances following a
week in/week out rotation, in line with the various regional restrictions.
The EBOS Pandemic Response Team, formed in the early stages of the pandemic and consisting of
the CEO and his direct reports, continues to oversee all COVID-19 related matters, including the
safety of our employees, with the structure and resources in place to manage the constantly
changing situation in New Zealand and Australia.
EBOS’ employees have shown extraordinary commitment in facing the many challenges throughout
the COVID-19 situation. We know that these challenges will continue for some time but we also
know that it is the strength and resilience that we have seen displayed on a daily basis that will
ensure we all get through these most challenging of times. The Board wishes to convey their sincere
thanks to everyone at EBOS for continuing to deliver to the communities we serve and for your
ongoing commitment to our great company. We also commend all of the pharmacists and healthcare
professionals that we serve, for the enormous amount of work they have done on the frontline
during this pandemic.
Cash Flow, Net Debt and Return on Capital Employed
First half operating cash flow was excellent at $98.7 million, a 33.0% increase on the prior
corresponding period. The cash performance reflects our strong earnings growth and continued
disciplined working capital management.
Net capital expenditure for the period was $10.1 million and primarily comprised spend on multiple
operating sites and IT projects.
During the period, the Group made two strategic acquisitions, being Cryomed and CH2’s vet
distribution business, for cash consideration of approximately $23 million.
Return on Capital Employed (“ROCE”) of 17.5% is a record for the Group and up 0.4% compared to 30
June 2020. This reflects our strong earnings growth and efficient capital management.
The Group’s Net Debt : EBITDA ratio at 31 December 2020 was 1.00x reflecting further strengthening
of our balance sheet (1.11x as at 30 June 2020). Current gearing retains significant capacity to fund
investments and acquisitions.
In February 2021 the Group refinanced $443.0 million of term debt facilities and upsized the
committed refinanced facilities to $465.0 million. The Group extended the maturity dates for these
debt facilities and now has no debt maturities until H2 FY23.
7
Interim Dividend
The Directors declared an interim dividend of NZ 42.5 cents per share, an increase of 13.3% on the
prior corresponding period. This implies a dividend payout ratio of 69.0%
4
, broadly consistent with
recent periods.
Reflecting the Group’s strong operating performance, cash flow and balance sheet, the Dividend
Reinvestment Plan (“DRP”) will not be available for the interim dividend.
The record date for the dividend is 5 March 2021 and the dividend will be paid on 18 March 2021.
The interim dividend will be imputed to 25% for New Zealand tax resident shareholders and fully
franked for Australian tax resident shareholders.
EBOS reiterates its dividend policy of declaring dividends of not less than 60% of NPAT, although
notes that the average payout ratio over the last five years has been approximately 70%.
Trading Update
EBOS is pleased with the strong, double-digit earnings growth achieved during the first half of FY21.
The robust trading conditions that drove our first half FY21 performance remain in place. In January
2021 we recorded Group earnings growth at levels consistent with our first half FY21 growth.
We continue to closely monitor COVID-19 developments however, the Group is not presently
experiencing any associated material negative financial impacts. Given EBOS’ scale and market
leading positions in stable industries, as well as our strong balance sheet, we are well placed to
respond to challenges that may arise.
4
Dividend payout ratio calculated on an underlying basis based on a NZD:AUD exchange rate of 0.933.
8
This media release, the half-year results and related materials were authorised for lodgement with
NZX and ASX by the Board of EBOS Group Limited.
For further information, please contact:
Media: Investor Relations:
New Zealand Martin Krauskopf
Geoff Senescall General Manager, M&A and Investor Relations
Senescall Akers EBOS Group
+64 21 481 234 +61 402 026 060
Australia:
James Aanensen
PRX
+61 410 518 590
Financial Results Presentation webcast link:
https://edge.media-server.com/mmc/p/n797xtd3
About EBOS Group
EBOS Group Limited NZBN 9429031998840 (NZX/ASX Code: EBO) is the largest and most diversified
Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical
products. It is also a leading Australasian animal care brand owner, product marketer and distributor.
9
Appendix 1 – Reconciliation of Statutory to Underlying Result
Note 1: Underlying result is a Non-GAAP measure which adjusts for the effects of one-off items.
$m
EBITDAEBITPBTNPATEBITDAEBITPBTNPAT
Statutory result182.2 145.9 131.9 92.9 167.2 131.4 115.9 81.7
Transaction costs incurred on M&A
1.9 1.9 1.9 1.5 1.2 1.2 1.2 1.0
Underlying result
1
184.1 147.8 133.8 94.3 168.4 132.6 117.2 82.6
H1 FY21H1 FY20
---
INVESTOR
PRESENTATION
Interim Financial Results
Half year ended 31 December 2020
17 February 2020
DISCLAIMER
2
The information in this presentation was prepared by EBOS Group Limited (“EBOS” or the “Group”) with due care and attention. However,
the information is supplied in summary form and is therefore not necessarily complete, and, to the extent permitted by law, no representation
is made as to the accuracy, completeness or reliability of the information. In addition, neither EBOS nor any of its subsidiaries, directors,
employees, shareholders nor any other person shall have liability whatsoever to any person for any loss (including, without limitation, arising
from any fault or negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain forward-looking statements and projections. These reflect EBOS’ current expectations, based on what it thinks
are reasonable assumptions. To the extent permitted by law, EBOS gives no warranty or representation as to its future financial performance
or any future matter. Except as required by law or NZX or ASX listing rules, EBOS is not obliged to update this presentation after its release,
even if things change materially. This presentation does not constitute financial advice. Further, this presentation is not and should not be
construed as an offer to sell or a solicitation of an offer to buy EBOS securities and may not be relied upon in connection withany purchase
of EBOS securities.
This presentation contains a number of non-GAAP financial measures, including Gross Profit, Gross Operating Revenue, EBIT, EBITA,
EBITDA, NPAT, Underlying EBITDA, Underlying EBIT, Underlying NPAT, Underlying Earnings per Share, Free Cash Flow, Interest cover,
Net Debt, Underlying Net Debt and Return on Capital Employed. Because they are not defined by GAAP or IFRS, EBOS’ calculation of these
measures may differ from similarly titled measures presented by other companies and they should not be considered in isolation from, or
construed as an alternative to, other financial measures determined in accordance with GAAP. Although EBOS believes they provideuseful
information in measuring the financial performance and condition of EBOS' business, readers are cautioned not to place undue reliance on
these non-GAAP financial measures.
The information contained in this presentation should be considered in conjunction with the consolidated financial statementsfor the half year
ended 31 December 2020.
All currency amounts are in Australian dollars unless stated otherwise.
All amounts are presented inclusive of IFRS16 Leases, except for periods FY19 and prior, unless stated otherwise.
GROUP
FINANCIAL
RESULTS
3
H1 FY21 SUMMARY RESULTS
4
Note 1: Underlying results exclude the impact of one-off items. Refer to page 29 for the reconciliation of Underlying
to Statutory earnings.
Note 2: Net Debt : EBITDA excludes the impact of IFRS16 Leases.
$4.7b
Revenue
Statutory EBITDA
$182.2m
ROCE
100% Franked (AU)
25% Imputed (NZ)
up 6.3%
Net Debt : EBITDA
2
DPS
up 9.0%
Underlying EBITDA
1
$184.1m
up 9.3%
Statutory EBIT
$145.9m
up 11.1%
Underlying EBIT
1
$147.8m
up 11.5%
Statutory NPAT
$92.9m
up 13.7%
Underlying NPAT
1
$94.3m
up 14.2%
Statutory EPS
56.9c
up 12.3%
Underlying EPS
1
57.8c
up 12.7%
17.5%
up 0.4% on
June 2020
1.00x
down 0.11x on
June 2020
42.5c
up 13.3%
NZ$
KEY HIGHLIGHTS
EBOS’ strong performance has continued with another record result and double-digit
earnings growth
5
Healthcare
EBIT up 11.2%
1
•Healthcare’s strongperformance was driven by our Community Pharmacy, TerryWhiteChemmart
(“TWC”), Institutional Healthcare and Contract Logistics businesses. Key highlights included:
oAbove market growth from major Community Pharmacy wholesale customers;
oThe 7th Community Pharmacy Agreement commenced from July 2020 and provides the wholesale
business with additional certainty and increased CSO funding;
oTWC network sales growth of 5.8% and 22 new stores added to the network;
oInstitutional Healthcare customer demand for specialty medicines and medical consumables; and
oExpansion of our medical device distribution businessthrough the acquisition of Cryomed.
Animal Care
EBIT up 25.6%
1
•Animal Care’s outstanding performance was driven by our Vitapet, Black Hawk, AccessoryProducts and
Lyppardbusinesses all achievingdouble-digit sales growth. Key highlights included:
oContinued strength in the market positions of our key brands, combined with the strong tailwinds
of the pet care market due to established demographic trends and the effects of COVID-19
restrictions;
oGrowth from our Australian vet wholesaling business Lyppardthrough customer growth in the
online and retail channels and sales growth with major customers in the vet channel; and
oAcquisition of CH2’s vet distribution business.
Group
NPAT up 14.2%
1
•Excellent operating cash flow of $98.7m (up 33.0%).
•ROCE of 17.5%, which is a record for the Group.
•Further strengthened the balance sheet, with Net Debt : EBITDA reducing to 1.00x. Following further
refinancing initiatives, EBOS has no debt maturities until H2 FY23.
Note 1: Growth rates are calculated based on Underlying EBIT and Underlying NPAT (as applicable). Underlying results
exclude the impact of one-off items. Refer to page 29 for the reconciliation of Underlying to Statutory earnings.
STRATEGIC ACQUISITIONS
Acquisitions within the Medical Devices and Animal Care sectors, with approximately $23m
investment in H1 FY21
6
CH2’s
vetwholesale
division
•In November 2020, EBOS acquired CH2’svet distribution business for approximately $9m.
•The business is a distributor of pet medicines and food products to vets and pet retailers
in Australia and has been successfully integrated with Lyppard.
•This acquisition further consolidates Lyppard’sposition in the Australian vet distribution
market.
•In October 2020, EBOS acquired Cryomedfor approximately $14m.
•Cryomedwas established in 2013 and markets and distributes devices and consumables
used in aesthetic procedures in Australia and New Zealand.
•This represents our second acquisition in the medical devices sector and we will continue
to pursue further bolt-on acquisitions, with the objective of building a significant business
for EBOS over time.
•EBOS now generates aggregate annualised revenue of approximately $60mfrom our
medical devices businesses.
•As a truly independent partner we can provide long term growth opportunities to OEMs
as we bring our experienced management, capital resources and strong hospital
relationships to the Australian and New Zealand markets.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
•EBOS acknowledges it has a responsibility to our
stakeholders and the wider community to conduct
our business in a socially responsible manner and
act as a good corporate citizen.
•Importantly, the way in which we articulate, deliver,
and measure this activity drives perceptions,
opinions and trust among key stakeholders and the
community and ultimately ensures we maintain our
social license to operate.
•Under the guidance of the Board and an ESG
Steering Committee, our ESG Program formalises
these responsibilities, ensuring we have a strategic,
measurable and accountable framework in place
moving forward.
•We will continue to develop our ESG Program,
which is to be finalised in the second half of 2021.
OverviewIssues identified as important to EBOS and its
stakeholders
EBOS has commenced a formal ESG Program
Environment•Greenhouse gas emissions.
•Climate change resilience.
•Energy and water usage.
•Waste and packaging.
Business•Quality of products and services.
•Product design and lifecycle.
•Business ethics.
•Consumer welfare.
•Ethical source of products.
•Occupational health and safety.
•Recruiting and developing talent.
Social•Diversity and inclusion.
•Access and affordability of
medicines.
•Helping out in the community.
7
$m
H1 FY21H1 FY20VarVar%
Underlying Results
1
Revenue4,653.3 4,376.1 277.2 6.3%
GOR488.6 449.4 39.2 8.7%
EBITDA184.1 168.4 15.7 9.3%
Depreciation & Amortisation36.3 35.9 (0.5) (1.3%)
EBIT147.8 132.6 15.2 11.5%
Net Finance Costs14.1 15.4 1.4 8.9%
Profit Before Tax133.8 117.2 16.6 14.2%
Net Profit After Tax94.3 82.6 11.7 14.2%
Earnings per share - cps57.8c51.3c6.5c12.7%
EBIT margin3.18%3.03%0.15%
Net Debt
2
308.9 392.2
Net Debt : EBITDA
2
1.00x1.41x
Statutory Results
Revenue4,653.3 4,376.1 277.2 6.3%
EBITDA182.2 167.2 15.0 9.0%
EBIT145.9 131.4 14.6 11.1%
Profit Before Tax131.9 115.9 15.9 13.7%
Net Profit After Tax92.9 81.7 11.2 13.7%
Earnings per share - cps56.9c50.6c6.2c12.3%
GROUP PERFORMANCE
•Revenue of $4,653.3m, an increase of $277.2m
or 6.3%:
oHealthcare up 5.9%;
oAnimal Care up 15.7%.
•Underlying EBIT of $147.8m, an increase of
$15.2m or 11.5%:
oHealthcare up 11.2%;
oAnimal Care up 25.6%.
•EBIT margin expanded to 3.18% (from 3.03%).
•Underlying NPAT and EPS increases of 14.2%
and 12.7%, respectively.
•Net Debt : EBITDA ratio of 1.00x attributable to
strong earnings growth and disciplined capital
management.
8
Note 1: Underlying results exclude the impact of one-off items. Refer to page 29 for the reconciliation of Underlying to
Statutory earnings.
Note 2: Net Debt : EBITDA excludes the impact of IFRS16 Leases.
132.6
147.8
+13.0
+6.3
(4.0)
H1 FY20
GOR
Comm.
Pharmacy
Inst.
Healthcare
Contract
Logistics
Cons.
Products
Animal
Care
H1 FY21
GOR
H1 FY20
Underlying
EBIT
1
HealthcareAnimal
Care
Corporate H1 FY21
Underlying
EBIT
1
GOR bridge ($m) Underlying EBIT
1
bridge ($m)
4.7%
H1 FY21
growth
vs. pcp
15.5%12.0%(6.0%)13.8%8.7%11.2%25.6%(52.2%)11.5%
Note 1: Underlying results exclude the impact of one-off items. Refer to page 29 for the reconciliation of Underlying to
Statutory earnings.
9
BUSINESS AND SEGMENT PERFORMANCE
The majority of EBOS’ businesses contributed positively to H1 FY21’s strong GOR and EBIT growth
449.4
488.6
+10.5
+16.9
+4.7
(1.2)
+8.2
6.6%
12.0%
7.2%
16.7%
7.0%
13.7%
11.2%
25.6%
14.2%
Healthcare Underlying EBITAnimal Care EBITGroup Underlying NPAT
H1 growth rate
1
Maintained strong Healthcare growth, cycling our record
result in FY20, which was driven by increased Community
Pharmacy wholesale volumes
Excellent growth from structural
pet market trends, further
accelerated by COVID-19 tailwinds
STRONG GROWTH COMPARED TO HISTORICAL LEVELS
Growth for the H1 FY21 period builds upon our previous record FY20 result
Note 1: Growth rates are shown on an underlying basis excluding one-off items. H1 FY16 –19 CAGRs are based on pre IFRS
16 Leases reporting, H1 FY20 growth rates reflect the transition to IFRS 16 Leases reporting during that period and H1 FY21
growth rates are based on post IFRS 16 Leases reporting.
10
H1
FY16 –19
CAGR
H1
FY20
growth
H1
FY21
growth
H1
FY16 –19
CAGR
H1
FY20
growth
H1
FY21
growth
H1
FY16 –19
CAGR
H1
FY20
growth
H1
FY21
growth
11
HEALTHCARE
RESULTS
91.5
95.5
99.2
115.8
128.8
2.57%
2.81%
3.00%
2.78%
2.92%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
H1 FY17H1 FY18H1 FY19H1 FY20H1 FY21
Healthcare -EBIT and EBIT %
Underlying EBIT ($m)Underlying EBIT %
$mH1 FY21H1 FY20Var$Var%
Revenue4,409.54,165.5244.05.9%
Underlying EBIT¹128.8115.813.011.2%
Underlying EBIT%2.92%2.78%
Australia
Revenue3,514.03,331.4182.65.5%
Underlying EBIT¹108.597.611.011.3%
Underlying EBIT%3.09%2.93%
New Zealand
Revenue895.5834.161.57.4%
Underlying EBIT¹20.318.32.011.0%
Underlying EBIT%2.26%2.19%
HEALTHCARE SEGMENT
Healthcare segment Underlying EBIT growth of 11.2%, with strong performances in both
Australiaand New Zealand
12
•Revenue growth of 5.9% was driven by the
performances of our Community Pharmacy, TWC,
Institutional Healthcare and Contract Logistics
businesses.
•Underlying EBIT growth of 11.3% in Australia and
11.0% in New Zealand is primarily from increased
wholesale sales, productivity improvements in
wholesale operations, TWC’s performance and
continued strong demand for specialty medicines
and medical consumables.
Underlying EBIT
1
Note 1: Underlying results exclude the impact of one-off items. Refer to page 29 for the reconciliation of
Underlying to Statutory earnings for H1 FY21 and H1 FY20.
$mH1 FY21H1 FY20Var$Var%
Revenue2,683.82,561.9121.94.8%
GOR231.8221.410.54.7%
GOR%8.64%8.64%
COMMUNITY PHARMACY
•Community Pharmacy revenue increased by
$121.9m (4.8%) and GOR by $10.5m (4.7%),
benefitting from:
oIncreased wholesale revenue in both
Australia and New Zealand;
oContinued above market growth by major
wholesale customers;
oProductivity improvements in wholesale
operations across all sites, particularly the
Brisbane distribution facility; and
oStrong performance of our retail brands,
including TWC.
•Revenue in the first half was impacted by
approximately $39m due to PBS pricing
reforms.
•The 7
th
Community Pharmacy Agreement
commenced from July 2020 and provides the
wholesale business with additional certainty
with increased CSO funding.
Revenue and GOR ($m)
13
TERRYWHITE CHEMMART
Continued growth in one of Australia’s leading community pharmacy networks
14
•The TWC national store network increased by 22 since June 2020,
the largest 6 month increase on record.
•Number 1 for Roy Morgan Pharmacy Customer Satisfaction in
2020.
•Media spend increased in the first half by approximately 40%,
delivering strong brand improvements and coverage. TWC is now
the second largest advertiser in the Australian retail pharmacy
sector.
•Continued vaccination leadership:
oEarly to market with flu registration campaign;
oInvestment into online booking platform; and
oProactively supporting TWC pharmacists to prepare for the
COVID-19 vaccination roll-out
that’s realchemistry
Network sales growth in H1 FY21
Total sales up 5.8%
Like-for-like up 4.2%
Dispensary sales up 7.0%
Like-for-like up 5.5%
Script volumes up 4.9%
Like-for-like up 3.2%
INSTITUTIONAL HEALTHCARE
•Institutional Healthcare revenue increased by
$108.4m (8.7%) and GOR increased by $16.9m
(15.5%), largely from increases in new
specialty medicines, combined with strong
growth in the medical consumables sector
and acquisitions in the medical devices sector.
•Symbion Hospitals revenue grew by 8.7%
primarily from specialty medicines. The
business continued its excellent service levels
and relationships with both private and public
hospitals and increased its market leading
position.
•Our businesses in both Australia and New
Zealand benefitted from the continued
customer demand for medical consumables.
•Further expansion in the medical devices
sector through the acquisition of Cryomed in
October 2020.
Revenue and GOR ($m)
15
$mH1 FY21H1 FY20Var$Var%
Revenue1,360.61,252.3108.48.7%
GOR126.3109.416.915.5%
GOR%9.28%8.73%
$mH1 FY21H1 FY20Var$Var%
Revenue397.3346.450.914.7%
GOR44.039.34.712.0%
CONTRACT LOGISTICS
•Contract Logistics revenue increased by
$50.9m (14.7%) and GOR by $4.7m (12.0%),
attributable to existing customer growth and
increased volumes in New Zealand to service
customer requirements mainly for protective
equipment and testing kits.
•Contract Logistics currently services 160
overseas manufacturers and is well placed
for further growth in Australia and New
Zealand.
Revenue and GOR ($m)
Note: GOR % not relevant as sales are predominantly on consignment.
16
CONSUMER PRODUCTS
•Consumer Products revenue decreased by
$5.8m (10.1%) and GOR decreased by $1.2m
(6.0%).
•Performance was impacted by COVID-19 with
lower retail and daigousales and category
declines (particularly from a reduced cold and
flu season).
•The business has recently expanded its
product ranging in grocery. Supply to Asian
customers (excluding China) continues to
build.
Revenue and GOR ($m)
17
$mH1 FY21H1 FY20Var$Var%
Revenue52.157.9(5.8)(10.1%)
GOR18.519.7(1.2)(6.0%)
GOR%35.6%34.0%
18
ANIMAL
CARE
RESULTS
18.4
20.5
22.9
24.5
30.7
8.9%
10.8%
11.9%
11.6%
12.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
H1 FY17H1 FY18H1 FY19H1 FY20H1 FY21
Animal Care -EBIT and EBIT %
EBIT ($m)EBIT %
$m
H1 FY21H1 FY20
Var$Var%
Revenue243.8210.633.215.7%
EBIT30.724.56.325.6%
EBIT%12.6%11.6%
ANIMAL CARE SEGMENT
•Animal Care revenue increased by $33.2m
(15.7%) and EBIT increased by $6.3m (25.6%) due
to the performance of our branded product
portfolio combined with higher online and vet
wholesale volumes.
•Black Hawk and Vitapet recorded strong uplifts
in revenue with both brands continuing to grow
within their respective market segments.
•Category tailwinds in a COVID-19 environment
and the successful launch of a new flea
treatment product supported strong growth in
the accessory category.
•Acquired CH2’s vet wholesale distribution
business in November 2020 and successfully
integrated it with our Lyppardbusiness.
EBIT
Pet market tailwinds have driven a step change in earnings for the Animal Care segment
19
•Ageing population
leading to a higher
number of single person
households.
•Couples choosing to
have children later in life
and / or fewer children.
•Rising household
wealth.
•Driving increasing pet
ownership.
Demographic factors
•Increasing pet
ownership with 62% of
households in Australia
and New Zealand
owning a pet
1
.
•Humanisation of pets
(pet parents; part of the
family).
•Premiumisationof
products.
•Growing use of
outsourced services.
•COVID-19 restrictions
resulting in more time
spent at home with pets.
•Reported increased pet
adoption rates compared
to last season.
Pet market tailwindsCOVID-19 tailwinds
Well established global trends driving structural growth in the
pet market
Acceleration during
COVID-19
STRONG GLOBAL PET MARKET GROWTH
Animal Care benefited from well established market trends, further accelerated by COVID-19
Note 1: Australia pet ownership statistic sourced from HILDA 2020 survey. New Zealand pet ownership statistic sourced
from New Zealand Pet Owners’ Demographic Characteristics, Personality, and Health and Well Being, July 2020.
20
Categories
H1 FY21
sales growth
Salesgrowth drivers
Black Hawk11.8%
•Strong consumer support for our products.
•Continued investment in marketing to drive increased brand
awareness and retail support.
•Increasing market share in New Zealand.
Vitapet11.4%
•Increasing market share in Australia and New Zealand.
•Strong new product pipeline.
•Marketing support to grow brand awareness.
Lyppard17.8%
•Growth in the online and retail channels and major customers
within the Vet channel.
•Acquisition of CH2’s vet distribution business.
CONTINUED PRODUCT AND BRAND GROWTH
Our key categories and Lyppardbusiness demonstrated double-digit sales growth
21
22
FINANCIAL
INFORMATION
AND CURRENT
TRADING
$mH1 FY21H1 FY20Var$Var%
Statutory EBITDA182.2 167.2 15.0 9.0%
Net interest paid(14.1) (15.4) 1.4
Tax paid(41.2) (32.6) (8.6)
Net working capital and other movements(28.2) (45.0) 16.8
Cash from Operating activities98.7 74.2 24.5 33.0%
Capital expenditure (net)(10.1) (13.7) 3.5
Free Cash Flow88.6 60.5 28.1 46.3%
CASH FLOW
23
•Operating Cash Flow of $98.7m is above the prior corresponding period by $24.5m, driven by strong earnings
growth and continued disciplined working capital management.
•Capex of $10.1m primarily comprised spend on multiple operating sites and IT projects.
•During the period, the Group made two acquisitions, being Cryomedand CH2’s vet distribution business, for
aggregate upfront cash consideration of approximately $23m.
Cash from Operating activities ($m)
15.9%
17.1%
15.9%
17.5%
FY19FY20H1 FY20H1 FY21
$mH1 FY21FY20H1 FY20
Net Working Capital
Trade receivables1,049.7 984.6 1,069.6
Inventory759.4 737.7 728.7
Trade payables/other(1,469.8) (1,417.2) (1,452.6)
Total339.2 305.1 345.7
Cash conversion days
Debtor days42 41 43
Inventory days34 34 34
Creditor days60 60 61
Cash conversion days16 15 16
WORKING CAPITAL AND ROCE
24
•Working capital management discipline is a
key focus of EBOS and we have maintained the
industry leading cash conversion cycle of 16
days.
Working Capital
•Return on Capital Employed of 17.5% at
December 2020 is above June 2020 by 0.4% and
is a record for the Group.
•Reflects strong earnings growth and disciplined
capital management.
Return on Capital Employed (ROCE)
1
Note 1: ROCE calculation excludes the impacts of IFRS 16 Leases.
NET DEBT AND MATURITY PROFILE
•Net Debt
1
of $309m at December 2020, with a Net
Debt : EBITDA
1
ratio of 1.00x (1.11x at June 2020).
•Current gearing retains significant capacity to fund
investments and acquisitions.
Net Debt and Net Debt : EBITDA ratio
1
•In August 2020, EBOS extended the tenor of its
$400m securitisation facility by a further 3 years.
•In February 2021, EBOS refinanced $443m of term
debt facilities, upsizing the committed refinanced
facilities to $465m, and extending the maturity
dates to February 2024 ($172m) and May 2025
($293m).
•EBOS has no maturities in its debt facilities until H2
FY23.
Cash and Debt Maturity Profile
2
Note 1: Net Debt and the Net Debt : EBITDA ratio excludes the impacts of IFRS 16 Leases.
Note 2: Maturity profile reflects the February 2021 refinance of term debt facilities. All drawn debt and cash values
are as at 31 December 2020.
25
552
366
392
327
309
2.16x
1.41x
1.41x
1.11x
1.00x
0
0.5
1
1.5
2
2.5
0
100
200
300
400
500
600
700
800
Dec-18Jun-19Dec-19Jun-20Dec-20
Net Debt : EBITDA Ratio
Net debt (A$m)
Net DebtNet Debt : EBITDA Ratio
30.0
33.0
34.5
37.5
42.5
33.0
35.5
37.0
40.0
63.0
68.5
71.5
77.5
FY17FY18FY19FY20FY21
NZ$ cents per share
H1H2
44.7
46.0
47.8
51.3
57.8
41.6
44.4
46.4
49.5
86.3
90.4
94.2
100.8
FY17FY18FY19FY20FY21
Cents per share ($A)
H1H2
EARNINGS AND DIVIDENDS PER SHARE
26
•Underlying EPS of 57.8 cents representing growth of 12.7% in H1 FY21.
•Interim dividend of 42.5 NZ cents (imputed to 25% and franked to 100% for New Zealand and Australian tax
resident shareholders, respectively) representing growth of 13.3%.
•Dividend payout ratio of 69.0%, on an underlying basis
1
.
•Reflecting the Group’s strong operating performance, cash flow and balance sheet, the DRP will not be available for
the interim dividend.
•EBOS reiterates its dividend policy of declaring dividends of not less than 60% of NPAT, although notes that the
average payout ratio over the last five years has been approximately 70%.
Dividends per Share (NZ$ cents)
Underlying Earnings per Share (A$ cents)
Note 1: Dividend payout ratio calculated on an underlying basis based on a NZD:AUD exchange rate of 0.933.
FY21 TRADING UPDATE
27
•EBOS is pleased with the strong, double-digit earnings growth achieved during the first half
of FY21.
•The robust trading conditions that drove our first half FY21 performance remain in place. In
January 2021 we recorded Group earnings growth at levels consistent with our first half FY21
growth.
•We continue to closely monitor COVID-19 developments however, the Group is not presently
experiencing any associated material negative financial impacts. Given EBOS’ scale and
market leading positions in stable industries, as well as our strong balance sheet, we are well
placed to respond to challenges that may arise.
28
SUPPORTING
INFORMATION
RECONCILIATION OF STATUTORY TO UNDERLYING
RESULTS
Note 1: Underlying results is a Non-GAAP measure which adjusts for the effects of one-off items.
29
$m
EBITDAEBITPBTNPATEBITDAEBITPBTNPAT
Statutory result182.2 145.9 131.9 92.9 167.2 131.4 115.9 81.7
Transaction costs incurred on M&A
1.9 1.9 1.9 1.5 1.2 1.2 1.2 1.0
Underlying result
1
184.1 147.8 133.8 94.3 168.4 132.6 117.2 82.6
H1 FY21H1 FY20
$m
H1 FY21H1 FY20Var$Var%H1 FY21H1 FY20Var$Var%
Healthcare
Pre IFRS16141.4129.811.58.9%125.4113.511.910.5%
add IFRS16 impact18.116.02.11.41.10.4
Statutory159.4145.813.69.3%126.9114.612.310.7%
add One-off items1.91.20.71.91.20.7
Underlying161.3147.114.39.7%128.8115.813.011.2%
Animal Care
Pre IFRS1631.125.75.420.9%30.624.36.325.8%
add IFRS16 impact2.82.80.10.20.20.0
Statutory33.928.55.419.1%30.724.56.325.6%
Corporate
Pre IFRS16(11.8)(7.7)(4.0)(52.1%)(11.8)(7.7)(4.0)(52.1%)
add IFRS16 impact0.70.60.00.10.10.0
Statutory(11.1)(7.1)(4.0)(56.4%)(11.7)(7.7)(4.0)(52.2%)
EBOS Group
Pre IFRS16160.7147.812.98.7%144.2130.114.110.9%
add IFRS16 impact21.619.42.11.71.30.4
Statutory182.2167.215.09.0%145.9131.414.611.1%
add One-off items1.91.20.71.91.20.7
Underlying184.1168.415.79.3%147.8132.615.211.5%
EBITDAEBIT
SEGMENT EBITDA AND EBIT RECONCILIATION
30
Note 1: Underlying results is a Non-GAAP measure which adjusts for the effects of one-off items.
$m
H1 FY21H1 FY20Var$Var%H1 FY21H1 FY20H1 FY21H1 FY20Var$Var%
Group Income Statement
Revenue4,653.3 4,376.1 277.2 6.3%- - 4,653.3 4,376.1 277.2 6.3%
Gross Operating Revenue488.6 449.4 39.2 8.7%- - 488.6 449.4 39.2 8.7%
EBITDA160.7 147.8 12.9 8.7%21.6 19.4 182.2 167.2 15.0 9.0%
Depreciation & Amortisation16.4 17.7 1.3 7.2%19.9 18.1 36.3 35.9 (0.5) (1.3%)
EBIT144.2 130.1 14.1 10.9%1.7 1.3 145.9 131.4 14.6 11.1%
Net Finance Costs10.2 11.5 1.4 11.9%3.9 3.9 14.1 15.4 1.4 8.9%
Profit Before Tax134.1 118.5 15.5 13.1%(2.2) (2.6) 131.9 115.9 15.9 13.7%
Tax Expense / (Benefit)39.5 35.1 (4.4) (12.6%)(0.6) (1.1) 38.9 34.0 (4.9) (14.4%)
Outside Equity Interest0.1 0.2 (0.1) (56.9%)- - 0.1 0.2 (0.1) (56.9%)
Net Profit after Tax94.4 83.2 11.2 13.5%(1.5) (1.5) 92.9 81.7 11.2 13.7%
Earnings per share - cps57.8c51.6c6.2c12.1%(0.9) (0.9) 56.9c50.6c6.2c12.3%
EBITDA by Segment
Healthcare141.4 129.8 11.5 8.9%18.1 16.0 159.4 145.8 13.6 9.3%
Animal Care31.1 25.7 5.4 20.9%2.8 2.8 33.9 28.5 5.4 19.1%
Corporate(11.8) (7.7) (4.0) (52.1%)0.7 0.6 (11.1) (7.1) (4.0) (56.4%)
Group160.7 147.8 12.9 8.7%21.6 19.4 182.2 167.2 15.0 9.0%
EBIT by Segment
Healthcare125.4 113.5 11.9 10.5%1.4 1.1 126.9 114.6 12.3 10.7%
Animal Care30.6 24.3 6.3 25.8%0.2 0.2 30.7 24.5 6.3 25.6%
Corporate(11.8) (7.7) (4.0) (52.1%)0.1 0.1 (11.7) (7.7) (4.0) (52.2%)
Group144.2 130.1 14.1 10.9%1.7 1.3 145.9 131.4 14.6 11.1%
IFRS16 Impact
Statutory pre IFRS16Statutory
RECONCILIATION OF CHANGES TO IFRS16 LEASE
ACCOUNTING: INCOME STATEMENT
31
GLOSSARY OF TERMS AND MEASURES
Except where noted, common terms and measures used in this document are based upon the following definitions:
TermDefinition
Debtor daysTrade debtors at the end of period divided by Revenue for the period, multiplied by number of days in the period.
Inventory daysInventory at the end of period divided by Cost of Sales for the period, multiplied by number of days in the period.
Creditor daysTrade creditors at the end of period divided by Cost of Sales for the period, multiplied by number of days in the period.
RevenueRevenue from the sale of goods and the rendering of services.
Gross Operating
Revenue (GOR)
Revenue less cost of sales and the write-down of inventory.
EBITDAEarnings before interest, tax, depreciation and amortisation.
Underlying EBITDAEarnings before interest, tax, depreciation, amortisation and adjusted forone-off items.
EBITEarnings before interest and tax.
Underlying EBITEarnings before interestand tax and adjusted for one-off items.
PBTProfit before tax.
Underlying PBTProfit before tax and adjusted for one-off items.
NPATNet Profit After Tax attributable to the owners of the company.
Underlying NPATNet Profit After Tax attributable to the owners of the company and adjusted for one-offitems.
One-off itemsTransaction costs incurred on M&A activities.
Free Cash FlowCash from operating activitiesless capital expenditure net of proceeds from disposals.
Earnings per share
(EPS)
Net Profit after tax divided by the weighted average number of shares on issue during the periodin accordance with IAS 33 ‘Earnings per share’.
IFRSInternational FinancialReporting Standards.
Underlying EPSUnderlying NPAT divided by the weighted average number of shares onissue during the periodin accordance with IAS 33 Earnings per share.
Underlying NetDebtNet debtexcluding the impacts of IFRS16 Leases.
Net Debt : EBITDARatio of Underlying net debt at period end to the last 12 months Underlying EBITDA, adjusting for pre acquisition earnings of acquisitions for the period.
Return on Capital
Employed (ROCE)
Underlyingearnings before interest, tax and amortisationof finite life intangibles for 12 months (EBITA) divided by closing capital employed(excluding IFRS16
Leases and including a pro-rata adjustment for entities recently acquired,significant capital projects and strategicinvestmentsduringthe period).
32
www.ebosgroup.com
---
EBOS GROUP LIMITED
INTERIM REPORT
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2020
EBOS GROUP LIMITED
INTERIM REPORT 2021
CONTENTS Page
Summary of Consolidated Financial Highlights 1
Shareholder Calendar 1
Auditor’s Independent Review Report 2
Condensed Consolidated Income Statement 3
Condensed Consolidated Statement of Comprehensive Income 4
Condensed Consolidated Statement of Changes in Equity 5
Condensed Consolidated Balance Sheet 8
Condensed Consolidated Cash Flow Statement 9
Notes to the Condensed Consolidated Interim Financial Statements 10
Directory 20
1
EBOS GROUP LIMITED
INTERIM REPORT 2021
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Revenue 4,653,298 4,376,127 8,765,540
Profit before net finance costs, tax expense, depreciation and
amortisation (EBITDA)
182,219
167,205
333,599
Earnings before interest and tax expense (EBIT) 145,910 131,355 260,453
Profit before income tax expense 131,859 115,928 230,057
Profit for the period 92,969 81,922 161,516
Profit for the period attributable to owners of the Company 92,865 81,680 162,518
Equity attributable to owners of the Company 1,380,890 1,284,757 1,314,947
Earnings per share 56.9c 50.6c 100.6c
Interim dividend per share (New Zealand dollars) 42.5c 37.5c 37.5c
SHAREHOLDER CALENDAR
Interim dividend record date 5 March 2021
Interim dividend payable 18 March 2021
Release of 2021 full year results 18 August 2021
Annual General Meeting 19 October 2021
2
Independent Auditor’s Review Report
To The Shareholders Of EBOS Group Limited
Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial statements’) of EBOS Group Limited and its
subsidiaries (‘the Group’) which comprise the condensed consolidated balance sheet as at 31 December 2020, and the condensed
consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of
changes in equity and condensed consolidated cash flow statement for the six months ended on that date, and a summary of significant
accounting policies and other explanatory information on pages 3 to 19.
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 31 December 2020 and its
financial performance and cash flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor
of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the
Interim Financial Statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other assignments for the Group in the area of taxation compliance services. These services have not impaired our
independence as auditor of the Company. In addition to this, partners and employees of our firm deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group. The firm has no other relationship with, or interest in, the
Group.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Company for the preparation and fair presentation of the interim financial statements in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the directors
determine is necessary to enable the preparation and fair presentation of the condensed consolidated interim financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the condensed consolidated interim financial
statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS
34 Interim Financial Reporting.
A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. The procedures performed in a review are substantially less than
those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand) and consequently do not
enable us to obtain assurance that we might identify in an audit. Accordingly we do not express an audit opinion on the condensed
consolidated interim financial statements.
Restriction on use
This report is made solely to the company’s shareholders, as a body. Our review has been undertaken so that we might state to the
company’s shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the conclusions we have formed.
Mike Hawken, Partner
for Deloitte Limited
Christchurch, New Zealand
16 February 2021
3
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2020
Notes
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Revenue
2(a) 4,653,298 4,376,127 8,765,540
Income from associates
2,855 1,632 3,355
Profit before net finance costs, tax expense,
depreciation and amortisation (EBITDA)
182,219
167,205
333,599
Depreciation
2(b) (30,262) (27,619) (56,870)
Amortisation of finite life intangibles
2(b) (6,047) (8,231) (16,276)
Earnings before interest and tax expense (EBIT)
145,910 131,355 260,453
Finance income
292 761 1,387
Finance costs – borrowings
(10,456) (12,291) (23,657)
Finance costs – leases
(3,887) (3,897) (8,126)
Profit before income tax expense
131,859 115,928 230,057
Income tax expense
(38,890) (34,006) (68,541)
Profit for the period
92,969 81,922 161,516
Profit for the period attributable to:
Owners of the Company
92,865 81,680 162,518
Non-controlling interests
104 242 (1,002)
92,969 81,922 161,516
Earnings per share
Basic (cents per share)
56.9 50.6 100.6
Diluted (cents per share)
56.9 50.6 100.6
4
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2020
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Profit for the period
92,969 81,922 161,516
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Cash flow hedge (losses)
(539) (218) (2,414)
Related income tax
155 64 766
Movement in foreign currency translation reserve
(13) 3,031 (7,378)
(397) 2,877 (9,026)
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments fair valued through other
comprehensive income
(847) (2,778) 926
Total comprehensive income net of tax
91,725 82,021 153,416
Total comprehensive income for the period is attributable to:
Owners of the Company
91,621 81,779 154,418
Non-controlling interests
104 242 (1,002)
91,725 82,021 153,416
5
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2020
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2019 (unaudited):
Opening balance 931,811 3,937 (10,792) 323,635 (1,054) (5,206) (3,071) 1,239,260
Profit for the period - - - 81,680 - - 242 81,922
Other comprehensive income for
the period, net of tax
-
- 3,031 - (2,778)
(154) - 99
Payment of dividends 4 - - - (56,378) - - - (56,378)
Share based payments - 1,371 - - - - - 1,371
Dividends reinvested 3 9,301 - - - - - - 9,301
Employee LTI shares exercised 3 6,353 - - - - - - 6,353
Balance at 31 December 2019 947,465 5,308 (7,761) 348,937 (3,832) (5,360) (2,829) 1,281,928
6
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2020
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Year ended
30 June 2020 (audited):
Opening balance 931,811 3,937 (10,792) 323,635 (1,054) (5,206) (3,071) 1,239,260
Profit for the period - - - 162,518 - - (1,002) 161,516
Other comprehensive income for
the period, net of tax
-
- (7,378) - 926
(1,648) - (8,100)
Payment of dividends 4 - - - (114,141) - - - (114,141)
Share based payments - 2,664 - - - - - 2,664
Dividends reinvested 3 23,032 - - - - - - 23,032
Employee LTI shares exercised 3 6,353 - - - - - - 6,353
Employee share plan shares
issued 3 358
-
- - -
-
-
358
Employee share issue costs 3 (68) - - - - - - (68)
Balance at 30 June 2020 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
7
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2020
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2020 (unaudited):
Opening balance 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
Profit for the period - - - 92,865 - - 104 92,969
Other comprehensive income for
the period, net of tax
-
- (13) - (847)
(384) - (1,244)
Payment of dividends 4 - - - (59,225) - - - (59,225)
Share based payments - 2,183 - - - - - 2,183
Dividends reinvested 3 27,553 - - - - - - 27,553
Employee LTI shares exercised 3 3,056 - - - - - - 3,056
Employee share plan shares
issued 3 825
-
- - -
-
-
825
Employee share issue costs 3 (70) - - - - - - (70)
Balance at 31 December 2020 992,850 8,784 (18,183) 405,652 (975) (7,238) (3,969) 1,376,921
8
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2020
Notes
31 Dec 20
A$’000
(unaudited)
31 Dec 19
A$’000
(unaudited)
30 Jun 20
A$’000
(audited)
Current assets
Cash and cash equivalents 294,076 274,420 244,778
Trade and other receivables 1,098,930 1,107,458 1,022,587
Prepayments 18,832 12,496 12,484
Inventories
759,360
728,726
737,699
Current tax refundable 1,574 13,774 2,177
Other financial assets – derivatives 8 - - 109
Total current assets 2,172,772 2,136,874 2,019,834
Non-current assets
Property, plant and equipment 169,049 172,992 173,704
Capital work in progress 5,930 12,343 5,783
Prepayments 160 517 327
Deferred tax assets
131,025
125,712
131,039
Goodwill 10 993,941 966,763 969,623
Indefinite life intangibles 122,716 123,856 122,500
Finite life intangibles 42,145 41,870 43,792
Right of use assets
210,156
228,408
222,931
Investment in associates 44,229 42,607 46,679
Other financial assets 10,266 7,008 10,578
Total non-current assets 1,729,617 1,722,076 1,726,956
Total assets
3,902,389
3,858,950
3,746,790
Current liabilities
Trade and other payables 1,481,764 1,458,159 1,413,914
Bank loans
7
327,856 202,189 246,921
Lease liabilities 35,324 34,737 33,846
Current tax payable 22,357 20,375 17,505
Employee benefits 45,275 35,071 42,774
Other financial liabilities – derivatives 8 13,059 10,324 12,629
Total current liabilities 1,925,635 1,760,855 1,767,589
Non-current liabilities
Bank loans 7 275,000 464,209 324,916
Lease liabilities
191,197
205,999
203,300
Trade and other payables 3,315 3,355 3,988
Deferred tax liabilities 122,611 135,715 128,825
Employee benefits 7,710 6,889 7,298
Total non-current liabilities
599,833 816,167 668,327
Total liabilities 2,525,468 2,577,022 2,435,916
Net assets 1,376,921 1,281,928 1,310,874
Equity
Share capital 3 992,850 947,465 961,486
Share based payments reserve 8,784 5,308 6,601
Foreign currency translation reserve
(18,183) (7,761) (18,170)
Retained earnings 405,652 348,937 372,012
Equity instruments fair valued through other
comprehensive income
(975) (3,832) (128)
Cash flow hedge reserve (7,238) (5,360) (6,854)
Equity attributable to owners of the company 1,380,890 1,284,757 1,314,947
Non-controlling interests
(3,969) (2,829) (4,073)
Total equity 1,376,921 1,281,928 1,310,874
9
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2020
Notes
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Cash flows from operating activities
Receipts from sale of goods and services
4,649,732 4,204,450 8,725,652
Interest received
292 761 1,387
Dividends received from associates
5,477 315 630
Payments for purchase of goods and services
(4,501,207) (4,082,531) (8,397,655)
Taxes paid
(41,205) (32,579) (69,037)
Interest paid
(14,343) (16,188) (31,785)
Net cash inflow from operating activities
5 98,746 74,228 229,192
Cash flows from investing activities
Sale of property, plant and equipment
77 346 369
Purchase of property, plant and equipment
(6,191) (5,429) (18,310)
Payments for capital work in progress
(1,720) (6,018) (5,918)
Payments for intangible assets
(2,312) (2,583) (5,053)
Investment in associates
- - (3,694)
Acquisition of subsidiaries
10 (22,936) (30,261) (40,868)
Investment in other financial assets
(497) - 143
Net cash (outflow) from investing activities
(33,579) (43,945) (73,331)
Cash flows from financing activities
Proceeds from issue of shares
3 31,364 15,654 29,675
Proceeds from borrowings
62,420 132,972 40,630
Repayment of borrowings
(31,740) - (1,236)
Repayment of lease liabilities
(17,424) (15,451) (31,957)
Dividends paid to equity holders of parent
(61,147) (55,508) (111,834)
Net cash (outflow)/inflow from financing activities
(16,527) 77,667 (74,722)
Net increase in cash held
48,640 107,950 81,139
Effect of exchange rate fluctuations on cash held
658 (150) (2,981)
Net cash and cash equivalents at beginning of period
244,778 166,620 166,620
Net cash and cash equivalents at end of period
294,076 274,420 244,778
10
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2020
1. FINANCIAL STATEMENTS
These unaudited condensed consolidated interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZGAAP”). They comply with the New Zealand Equivalent to International Accounting
Standard 34 (NZ IAS 34) Interim Financial Reporting and International Accounting Standard IAS 34.
EBOS Group Limited (‘the Company’) is a profit-oriented company incorporated in New Zealand, registered under the Companies
Act 1993 and dual listed on both the New Zealand Stock Exchange and the Australian Securities Exchange.
The Company is a Tier 1 for-profit entity in terms of the New Zealand External Reporting Board Standard A1.
The Company is a FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013, and its financial statements
comply with this Act.
These financial statements should be read in conjunction with the financial statements and related notes included in the Group’s
Annual Report for the year ended 30 June 2020.
The accounting policies adopted are consistent with those of the previous year.
The information is presented in thousands of Australian dollars unless otherwise stated.
2. PROFIT FROM OPERATIONS
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
(a)
Revenue
Community Pharmacy
2,683,823 2,561,903 5,090,153
Institutional Healthcare
1,360,648 1,252,258 2,565,111
Contract Logistics Services
42,886 36,225 74,107
Contract Logistics Sales
354,384
310,148
638,149
Consumer Products
52,062 57,905 115,438
Interdivisional eliminations
(84,284) (52,935) (142,530)
Healthcare
4,409,519 4,165,504 8,340,428
Animal Care
243,779
210,623
425,112
4,653,298 4,376,127 8,765,540
11
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
2. PROFIT FROM OPERATIONS (Continued)
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
(b)
Profit before income tax expense
Profit before income tax has been arrived at
after charging the following expenses by
nature:
One-off items (1)
(1,921)
(1,240)
(2,600)
Cost of sales
(4,160,581) (3,924,743) (7,843,282)
Write-down of inventory
(4,157) (1,976) (4,450)
Impairment loss on trade and other
receivables
(412) (617) (1,095)
Depreciation of property, plant and
equipment
(10,387) (9,480) (19,523)
Depreciation on right of use assets
(19,875)
(18,139)
(37,347)
Amortisation of finite life intangibles
(6,047) (8,231) (16,276)
Operating lease and rental expenses
(2,278) (2,515) (5,091)
Donations
(48) (45) (419)
Employee benefit expense
(163,075)
(145,443)
(302,535)
Defined contribution plan expense
(9,013) (8,578) (17,222)
Other expenses
(132,449) (125,397) (258,602)
Total expenses
(4,510,243) (4,246,404) (8,508,442)
(1) One-off items comprise merger and acquisition costs.
3. SHARE CAPITAL
Six months
31 Dec 20
Six months
31 Dec 19
Year ended
30 Jun 20
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(audited)
Fully paid ordinary
shares
Balance at beginning
of period
162,864
961,486
161,708
931,811
161,708
931,811
Dividend reinvested –
April
- - - - 724 13,731
October
1,233
27,553
415
9,301
415
9,301
Issue of shares to staff
under employee share
plan
37 825 - - 17 358
Employee share issue
costs
- (70) - - - (68)
Shares vested under
the long term
executive incentive
scheme
- 3,056 - 6,353 - 6,353
164,134
992,850
162,123
947,465
162,864
961,486
12
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
4. DIVIDENDS
AUD
Six months
31 Dec 20
AUD
Six months
31 Dec 19
AUD
Year ended
30 Jun 20
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(audited)
Recognised amounts
Fully paid ordinary shares
Final – prior year
36.5 59,225 35.0 56,378 35.0 56,378
Interim – current year
- - - - 35.9 57,763
36.5 59,225 35.0 56,378 70.9 114,141
Unrecognised amounts
Final dividend
- - - - 37.4 60,846
Interim dividend
39.9 65,460 36.1 58,468 - -
39.9 65,460 36.1 58,468 37.4 60,846
Dividends are approved by the Board in New Zealand dollars. Dividends recognised in the Statement of Changes in Equity are
converted from New Zealand dollars to Australian Dollars at the exchange rate applicable on the date the dividend was approved.
Unrecognised dividends are converted at the exchange rate applicable on the reporting date. The Board approved an interim
dividend of 42.5 New Zealand cents per share on 16 February 2021. The record date for the dividend is 12 March 2021 and the
dividend will be paid on 1 April 2021.
The following table shows dividends approved in New Zealand dollars:
Six months
Six months
Year ended
31 Dec 20
NZD
31 Dec 2019
NZD
30 Jun 20
NZD
Cents per
share
Cents per
share
Cents per
share
Recognised amounts
Fully paid ordinary shares
Final – prior year
40.0 37.0 37.0
Interim – current year
- - 37.5
40.0 37.0 74.5
Unrecognised amounts
Final dividend
- - 40.0
Interim dividend
42.5 37.5 -
42.5 37.5 40.0
New Zealand dollar dividends paid to equity holders of the parent are translated into Australian dollars and disclosed in the cash
flow statement at the foreign currency exchange rate applicable on the date they are paid.
13
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
5. NOTES TO THE CASH FLOW STATEMENT
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Reconciliation of profit for the period with cash
flows from operating activities
Profit for the period
92,969
81,922
161,516
Add/(less) non-cash items:
Depreciation of property, plant and equipment
10,387 9,480 19,523
Depreciation on right of use assets
19,875 18,139 37,347
Amortisation of finite life intangibles
6,047
8,231
16,276
(Gain)/loss on sale of property, plant and
equipment
(70) 51 88
Share of profits from associates, net of dividends
received
(2,855) (1,632) (3,355)
Expense recognised in respect of share based
payments
2,183 1,371 2,664
Deferred tax
(5,158) 8,227 (3,253)
30,409
43,867
69,290
Movements in working capital:
Trade and other receivables
(76,343) (209,662) (124,791)
Prepayments
(6,181) (2,760) (2,558)
Inventories
(21,661) (5,209) (14,182)
Current tax refundable/payable
5,455 (6,199) 2,528
Trade and other payables
67,177 159,254 115,642
Employee benefits
2,913 (5,457) 2,655
Foreign currency translation of working capital
balances
387 158 210
(28,253) (69,875) (20,496)
Balances classified as investing activities
(3,784) 9,610 10,092
Working capital items acquired on acquisition
7,405 8,704 8,790
Net cash inflow from operating activities
98,746 74,228 229,192
14
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
6. SEGMENT INFORMATION
(a) Products and services from which reportable segments derive their revenues
The Group’s reportable segments under NZ IFRS 8 Operating Segments are as follows:
Healthcare: Incorporates the sale of healthcare products in a range of sectors, own brands, retail healthcare, pharmacy
services and wholesale activities.
Animal Care: Incorporates the sale of animal care products in a range of sectors, own brands, retail and wholesale activities.
Corporate: Includes net funding costs and central administration expenses that have not been allocated to the Healthcare or
Animal Care segments.
(b) Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Six months ended 31 December 2020
(unaudited):
Revenue from external customers
4,409,519 243,779 - 4,653,298
EBITDA
159,427 33,924 (11,132) 182,219
Depreciation of property, plant and
equipment
(9,964)
(423)
-
(10,387)
Depreciation on right of use assets
(16,635) (2,668) (572) (19,875)
Amortisation of finite life intangibles
(5,951) (96) - (6,047)
EBIT
126,877 30,737 (11,704) 145,910
Net finance costs
- - (14,051) (14,051)
Income tax (expense)/credit
(37,141) (8,467) 6,718 (38,890)
Profit for the period
89,736 22,270 (19,037) 92,969
Non-controlling interests
(104) - - (104)
Profit for the period attributable to
owners of the Company
89,632 22,270 (19,037) 92,865
‘
Six months ended 31 December 2019
(unaudited):
Revenue from external customers
4,165,504 210,623 - 4,376,127
EBITDA
145,833 28,490 (7,118) 167,205
Depreciation of property, plant and
equipment
(9,081)
(399)
-
(9,480)
Depreciation on right of use assets
(14,956) (2,611) (572) (18,139)
Amortisation of finite life intangibles
(7,224) (1,007) - (8,231)
EBIT
114,572 24,473 (7,690) 131,355
Net finance costs
- - (15,427) (15,427)
Income tax (expense)/credit
(33,710) (6,789) 6,493 (34,006)
Profit for the period
80,862 17,684 (16,624) 81,922
Non-controlling interests
(242) - - (242)
Profit for the period attributable to
owners of the Company
80,620 17,684 (16,624) 81,680
15
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
6. SEGMENT INFORMATION (Continued)
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Year ended 30 June 2020
(audited):
Revenue from external customers
8,340,428 425,112 - 8,765,540
EBITDA
290,408 57,658 (14,467) 333,599
Depreciation of property, plant and
equipment
(18,724)
(799)
-
(19,523)
Depreciation on right of use assets
(31,012) (5,193) (1,142) (37,347)
Amortisation of finite life intangibles
(14,416) (1,860) - (16,276)
EBIT
226,256 49,806 (15,609) 260,453
Net finance costs
- - (30,396) (30,396)
Income tax (expense)/credit
(64,769) (13,864) 10,092 (68,541)
Profit for the year
161,487 35,942 (35,913) 161,516
Non-controlling interests
1,002 - - 1,002
Profit for the year attributable to
owners of the Company
162,489 35,942 (35,913) 162,518
16
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
6. SEGMENT INFORMATION (Continued)
The accounting policies of the reportable segments are consistent with the Group’s accounting policies. Segment result
represents profit before depreciation, amortisation, net finance costs and tax. This is the measure reported to the chief
operating decision maker for the purposes of resource allocation and assessment of segment performance.
(c) Segment assets
The following balance sheet and cash flow items are not allocated to operating segments as they are not reported to the
chief operating decision maker at a segment level:
- Assets
- Liabilities
- Capital expenditure
(d) Revenues from major products and services
The Group’s major products and services are transacted the same as its reportable segments i.e. Healthcare, Animal Care and
Corporate.
(e) Geographical information
The Group operates in two principal geographical areas; New Zealand (country of domicile) and Australia.
The Group’s revenue from external customers by geographical location (of the reportable segment) and information about its
segment assets (non-current assets excluding investments in associates and deferred tax assets) are detailed below:
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Revenue from external customers
New Zealand
927,077 861,857 1,720,144
Australia
3,726,221 3,514,270 7,045,396
4,653,298 4,376,127 8,765,540
Non-current assets
New Zealand
353,173 362,616 354,416
Australia
1,201,190 1,191,141 1,194,822
1,554,363 1,553,757 1,549,238
(f) Information about major customers
No revenues from transactions that are with a single customer amount to 10% or more of EBOS’ revenues for the period
(December 2019: Nil, June 2020: Nil).
7. BANK FACILITY AND BORROWINGS
The Group fully complies with and operates within the financial covenants under the arrangements with its bankers. At 31
December 2020 the Group had unutilised term and working capital facilities of $331.9m (December 2019: $171.9m, June 2020:
$300.3m).
The Group also has a trade debtor securitisation facility of which $158.2m was unutilised at 31 December 2020 (December 2019:
$198.0m, June 2020: $220.6m).
17
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
7. BANK FACILITY AND BORROWINGS (Continued)
As at 31 December 2020, the maturity profile of the Group’s term debt and securitisation facilities was:
Facility Amount Maturity
Term debt facilities (i) $150.0m Less than 1 year
Term debt facilities $543.0m 2-3 years
Securitisation facility $400.0m 2-3 years
(i) Subsequent to 31 December 2020, the Group refinanced $443.0m of bank term loans and working capital facilities. The
limit was increased to $465.0m and the maturity dates were extended to February 2024 for $172.0m of debt facilities
and May 2025 for $293.0m of debt facilities.
8. FINANCIAL INSTRUMENTS
The Group enters into forward foreign currency exchange contracts to hedge trading transactions, including anticipated
transactions, denominated in foreign currencies and uses interest rate swaps to manage cash flow interest rate risk.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the
nature of the hedge relationship. The Group designates certain derivatives as cash flow hedges of highly probable forecast
transactions.
Fair value of derivative financial instruments
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Other financial assets – derivatives (at fair value)
Forward foreign exchange contracts
- - 109
- - 109
Other financial liabilities – derivatives (at fair value)
Forward foreign exchange contracts
(3,179) (454) (367)
Interest rate swaps
(9,880) (9,870) (12,262)
(13,059) (10,324) (12,629)
The Group has categorised these derivatives, both financial assets and financial liabilities, as Level 2 under the fair value
hierarchy contained within NZ IFRS 13 Fair Value Measurement.
The fair value of foreign currency forward exchange contracts is determined using a discounted cash flow valuation. Key inputs
include observable forward exchange rates, at the measurement date, with the resulting value discounted back to present
values.
Interest rate swaps are valued using a discounted cash flow valuation. Key inputs for the valuation of interest rate swaps are the
estimated future cash flows based on observable yield curves at the end of the reporting period, discounted at a rate that
reflects the credit risk of the various counterparties.
There have been no changes in valuation techniques used for either forward foreign currency exchange contracts or interest rate
swaps during the current reporting period.
18
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
9. IMPACT OF NEW ACCOUNTING STANDARDS
In the current period the Group has adopted all mandatory new and amended standards and interpretations.
10. ACQUISITION INFORMATION
The following acquisitions of subsidiaries took place during the period.
Name of business acquired
Principal
activities
Date of
acquisition
Cost of
acquisition
A$’000
2021:
100% of the assets and liabilities of Cryomed (Cryomed)
Healthcare October 2020 22,028
100% of the assets of CH2 Vet
Animal Care November 2020 9,242
31,270
Combined details of acquisitions undertaken during the current period are as follows:
Carrying value
A$’000
(unaudited)
Fair value
adjustment
A$’000
(unaudited)
Fair value on
acquisition
A$’000
(unaudited)
Current assets
Trade and other receivables
2,528 (103)
1
2,425
Prepayments
8 - 8
Inventories
7,627 (1,499)
2
6,128
Non-current assets
Deferred tax assets
- 570
3
570
Current liabilities
Trade and other payables
(789) (294)
4
(1,083)
Employee benefits
(73) - (73)
Net assets acquired
9,301 (1,326) 7,975
Goodwill on acquisition
23,295
Total consideration 31,270
Less deferred purchase consideration (8,334)
Net cash outflow from acquisition 22,936
1. To recognise the fair value of trade and other receivables on acquisition.
2. To recognise the fair value of inventories on acquisition.
3. To recognise deferred tax assets on acquisition.
4. To recognise the fair value of trade and other payables on acquisition.
Due to the timing of the acquisitions the above figures have not yet been finalised and are currently considered provisional.
19
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
10. ACQUISITION INFORMATION (Continued)
Goodwill arose on the acquisition of the business operations of Cryomed and CH2 Vet because the cost of acquisition included a
control premium paid. In addition, goodwill resulted from the consideration paid for the benefit of future expected cash flows
above the current fair value of the assets acquired and the expected synergies and future market benefits expected to be obtained.
These benefits are not recognised separately from goodwill as the expected future economic benefits arising cannot be reliably
measured and they do not meet the definition of identifiable intangible assets.
Cryomed was acquired as it is a profitable Australasian medical device business which the Group believes fits strategically with its
Australasian healthcare business assets.
CH2 Vet was acquired as it is a profitable Australian animal care business which the Group believes fits strategically with its
Australian animal care business assets.
Deferred consideration of $8.3m has been recognised as future EBITDA earn out targets of the businesses acquired, on which the
consideration is payable, are expected to be achieved.
The impact of the acquisitions on the results of the Group are not considered material and are therefore not disclosed in the Interim
Report.
11. EVENTS AFTER BALANCE DATE
Subsequent to 31 December 2020, the Board approved an interim dividend to shareholders. For further details please refer to
Note 4.
Subsequent to 31 December 2020, the Group refinanced $443.0m of bank term loans and working capital facilities. For further
details please refer to Note 7.
20
EBOS GROUP LIMITED
DIRECTORY
CORPORATE HEAD OFFICE AUSTRALIA HEAD OFFICE
108 Wrights Road Level 7, 737 Bourke Street
PO Box 411 Docklands 3008
Christchurch 8024 Melbourne
New Zealand Australia
Telephone +64 3 338 0999 Telephone +61 3 9918 5555
E-mail: ebos@ebos.co.nz Email: ebos@ebosgroup.com
WEBSITE ADDRESS
www.ebosgroup.com
DIRECTORS
Elizabeth Coutts Independent Chair
Nick Dowling Independent Director
Stuart McGregor
Stuart McLauchlan Independent Director
Sarah Ottrey Independent Director
Peter Williams
SHARE REGISTER
Computershare Investor Services Ltd Computershare Investor Services Pty Ltd
Private Bag 92119 GPO Box 3329
Auckland 1142 Melbourne, Victoria 3001
New Zealand Australia
Telephone: +64 9 488 8777 Telephone: 1800 501 366
Managing Your Shareholding Online:
To change your address, update your payment instructions and to view your investment portfolio including transactions, please visit:
www.computershare.com/investorcentre
General enquiries can be directed to:
• enquiry@computershare.co.nz
• Private Bag 92119, Auckland 1142, New Zealand or GPO Box 3329, Melbourne, Victoria 3001, Australia
• Telephone (NZ) +64 9 488 8777 or (Aust) 1800 501 366
• Facsimile (NZ) +64 9 488 8787 or (Aust) +61 3 9473 2500
Please assist our registrar by quoting your CSN or shareholder number.
---
EBOS GROUP LIMITED
APPENDIX 4D
1
Interim Report for the Six Months Ended 31 December 2020
RESULTS FOR ANNOUNCEMENT TO THE MARKET
The following information is presented in accordance with ASX listing rule 4.2A.3 and should be read in
conjunction with the attached EBOS Group Limited condensed consolidated interim unaudited financial
statements for the six months ended 31 December 2020.
1. DETAILS OF THE REPORTING PERIOD AND THE PREVIOUS CORRESONDING PERIOD
Current period: Six months ended 31 December 2020
Previous corresponding period Six months ended 31 December 2019
This report and the attached condensed consolidated interim unaudited financial statements are presented
in Australian dollars, being the Group’s presentation currency.
2. RESULTS FOR ANNOUNCEMENT TO THE MARKET
Group Results
(Unaudited)
31 December 2020
AUD $000
31 December 2019
AUD $000
Change
%
Revenue 4,653,298 4,376,127 6.3%
Earnings before depreciation, amortisation, net
finance costs and tax expense (EBITDA) 182,219 167,205 9.0%
Depreciation and amortisation (36,309) (35,850) 1.3%
Earnings before interest and tax (EBIT) 145,910 131,355 11.1%
Profit before tax (PBT) 131,859 115,928 13.7%
Net profit after tax (NPAT) 92,969 81,922 13.5%
Net profit after tax (NPAT) attributable to owners
of the Company 92,865 81,680 13.7%
Weighted average number of shares 163,280 161,266 1.2%
Basic EPS – (CPS) 56.9 50.6 12.3%
Net tangible asset backing per ordinary share – ($) ($0.75) ($1.26)
Underlying EBITDA
(refer reconciliation below) 184,140 168,445 9.3%
Underlying EBIT
(refer reconciliation below) 147,831 132,595 11.5%
Underlying Net profit after tax (NPAT)
attributable to the owners of the Company
(refer reconciliation below)
94,346
82,649
14.2%
Underlying EPS – (CPS) 57.8 51.3 12.7%
EBOS GROUP LIMITED
APPENDIX 4D
2
Dividends Amount per NZ Cents Per
Share
Franked amount per
security to 30% tax rate
Interim dividend payable 18 March 2021 42.5c 100%
Interim dividend – previous corresponding
period
37.5c
100%
Key dates for the 2021 Interim Dividend
Ex-dividend date 4 March 2021
Record date 5 March 2021
(5.00pm NZDT)
Dividend payment date 18 March 2021
Other Comments
The interim dividend will be imputed to 25% for New Zealand tax resident shareholders, and a
supplementary dividend paid to eligible non-resident shareholders.
3. RECONCILIATION OF REPORTED TO UNDERLYING EARNINGS
Reconciliation of Reported vs Underlying
Earnings
(Unaudited)
31 December 2020
AUD $000
31 December 2019
AUD $000
Change
%
Reported EBITDA 182,219 167,205 9.0%
Add back one-off costs incurred during the period
1
1,921 1,240 54.9%
Underlying EBITDA 184,140 168,445 9.3%
Reported EBIT 145,910 131,355 11.1%
Add back one-off costs incurred during the period
1
1,921 1,240 54.9%
Underlying EBIT 147,831 132,595 11.5%
Reported Net Profit after Tax (NPAT) attributable
to owners of the Company
92,865 81,680 13.7%
Add back one-off costs incurred during the period
1
(net of tax and after non-controlling interests) 1,481 969 52.8%
Underlying Net Profit after Tax (NPAT)
attributable to owners of the Company 94,346 82,649 14.2%
1
The six months to 31 December 2020 one-off costs comprise merger and acquisition transaction costs of $1.9m (2019: $1.2m) on
a pre-tax basis ($1.5m (2019: $1.0m) on a post-tax basis).
Underlying EBITDA, Underling EBIT and Underlying Net Profit after Tax attributable to the owners of the
Company are non-GAAP measures, which adjust for the effects of one-off costs.
For supplementary comments on the Group’s financial results refer to the Results Presentation, Letter to
Shareholders and Media Release issued 17 February 2021.
EBOS GROUP LIMITED
APPENDIX 4D
3
4. ENTITIES ACQUIRED
There were no material acquisitions or disposals during the six months ended 31 December 2020. Details of
immaterial acquisitions undertaken during the period have been disclosed, in aggregated, in Note 10 of the
attached condensed consolidated interim unaudited financial statements
5. DIVIDENDS PAID AND DECLARED
Group Results
(Unaudited)
Amount
Per Share
(NZ$ Cents)
Amount
Per Share
(A$ Cents)
Total
Amount
($)
Date Paid /
Payable
Dividends declared in respect of
the year ending 30 June 2021
2021 interim dividend 42.5 cents 39.9 cents $65,460,000 18 March 2021
Dividends paid attributable to the
year ended 30 June 2020
2020 interim dividend 37.5 cents 35.9 cents 57,763,000 3 April 2020
2020 final dividend 40.0 cents 36.5 cents 59,225,000 9 October 2020
77.5 cents 72.4 cents 116,988,000
Dividends are approved by the Board in New Zealand dollars. Dividends recognised in the Statement of
Changes in Equity are converted from New Zealand dollars to Australian dollars at the exchange rate
applicable on the date the dividend was approved. Unrecognised dividends are converted at the exchange
rate applicable on the reporting date.
6. DIVIDEND REINVESTMENT PLAN
The Company's dividend reinvestment plan ('DRP') will not be available for the FY21 interim dividend.
7. ASSOCIATES AND JOINT VENTURES
The Group equity accounted the following associate entities at 31 December 2020.
Name of business Proportion of shares and voting rights
Animates NZ Holdings Limited
50.00%
Good Price Pharmacy Franchising Pty Limited 44.18%
Good Price Pharmacy Management Pty Limited 44.18%
Income from the individual Associates has not been separately disclosed as it is considered immaterial. Total
income from Investments in Associates for the six months ended 31 December 2020 was $2,855,000 (2019:
$1,632,000).
EBOS GROUP LIMITED
APPENDIX 4D
4
8. FOREIGN ENTITIES
The condensed consolidated interim unaudited financial statements are presented in Australian dollars and
comply with International Financial Reporting Standards (“IFRS”).
9. INDEPENDENT AUDIT REVIEW
The condensed consolidated interim financial statements have been reviewed by an independent auditor,
and the auditor has given an unmodified review opinion.
EBOS GROUP LIMITED
INTERIM REPORT
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2020
EBOS GROUP LIMITED
INTERIM REPORT 2021
CONTENTS Page
Summary of Consolidated Financial Highlights 1
Shareholder Calendar 1
Auditor’s Independent Review Report 2
Condensed Consolidated Income Statement 3
Condensed Consolidated Statement of Comprehensive Income 4
Condensed Consolidated Statement of Changes in Equity 5
Condensed Consolidated Balance Sheet 8
Condensed Consolidated Cash Flow Statement 9
Notes to the Condensed Consolidated Interim Financial Statements 10
Directory 20
1
EBOS GROUP LIMITED
INTERIM REPORT 2021
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Revenue 4,653,298 4,376,127 8,765,540
Profit before net finance costs, tax expense, depreciation and
amortisation (EBITDA)
182,219
167,205
333,599
Earnings before interest and tax expense (EBIT) 145,910 131,355 260,453
Profit before income tax expense 131,859 115,928 230,057
Profit for the period 92,969 81,922 161,516
Profit for the period attributable to owners of the Company 92,865 81,680 162,518
Equity attributable to owners of the Company 1,380,890 1,284,757 1,314,947
Earnings per share 56.9c 50.6c 100.6c
Interim dividend per share (New Zealand dollars) 42.5c 37.5c 37.5c
SHAREHOLDER CALENDAR
Interim dividend record date 5 March 2021
Interim dividend payable 18 March 2021
Release of 2021 full year results 18 August 2021
Annual General Meeting 19 October 2021
2
Independent Auditor’s Review Report
To The Shareholders Of EBOS Group Limited
Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial statements’) of EBOS Group Limited and its
subsidiaries (‘the Group’) which comprise the condensed consolidated balance sheet as at 31 December 2020, and the condensed
consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of
changes in equity and condensed consolidated cash flow statement for the six months ended on that date, and a summary of significant
accounting policies and other explanatory information on pages 3 to 19.
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 31 December 2020 and its
financial performance and cash flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor
of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the
Interim Financial Statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other assignments for the Group in the area of taxation compliance services. These services have not impaired our
independence as auditor of the Company. In addition to this, partners and employees of our firm deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group. The firm has no other relationship with, or interest in, the
Group.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Company for the preparation and fair presentation of the interim financial statements in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the directors
determine is necessary to enable the preparation and fair presentation of the condensed consolidated interim financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the condensed consolidated interim financial
statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS
34 Interim Financial Reporting.
A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. The procedures performed in a review are substantially less than
those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand) and consequently do not
enable us to obtain assurance that we might identify in an audit. Accordingly we do not express an audit opinion on the condensed
consolidated interim financial statements.
Restriction on use
This report is made solely to the company’s shareholders, as a body. Our review has been undertaken so that we might state to the
company’s shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the conclusions we have formed.
Mike Hawken, Partner
for Deloitte Limited
Christchurch, New Zealand
16 February 2021
3
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2020
Notes
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Revenue
2(a) 4,653,298 4,376,127 8,765,540
Income from associates
2,855 1,632 3,355
Profit before net finance costs, tax expense,
depreciation and amortisation (EBITDA)
182,219
167,205
333,599
Depreciation
2(b) (30,262) (27,619) (56,870)
Amortisation of finite life intangibles
2(b) (6,047) (8,231) (16,276)
Earnings before interest and tax expense (EBIT)
145,910 131,355 260,453
Finance income
292 761 1,387
Finance costs – borrowings
(10,456) (12,291) (23,657)
Finance costs – leases
(3,887) (3,897) (8,126)
Profit before income tax expense
131,859 115,928 230,057
Income tax expense
(38,890) (34,006) (68,541)
Profit for the period
92,969 81,922 161,516
Profit for the period attributable to:
Owners of the Company
92,865 81,680 162,518
Non-controlling interests
104 242 (1,002)
92,969 81,922 161,516
Earnings per share
Basic (cents per share)
56.9 50.6 100.6
Diluted (cents per share)
56.9 50.6 100.6
4
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2020
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Profit for the period
92,969 81,922 161,516
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Cash flow hedge (losses)
(539) (218) (2,414)
Related income tax
155 64 766
Movement in foreign currency translation reserve
(13) 3,031 (7,378)
(397) 2,877 (9,026)
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments fair valued through other
comprehensive income
(847) (2,778) 926
Total comprehensive income net of tax
91,725 82,021 153,416
Total comprehensive income for the period is attributable to:
Owners of the Company
91,621 81,779 154,418
Non-controlling interests
104 242 (1,002)
91,725 82,021 153,416
5
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2020
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2019 (unaudited):
Opening balance 931,811 3,937 (10,792) 323,635 (1,054) (5,206) (3,071) 1,239,260
Profit for the period - - - 81,680 - - 242 81,922
Other comprehensive income for
the period, net of tax
-
- 3,031 - (2,778)
(154) - 99
Payment of dividends 4 - - - (56,378) - - - (56,378)
Share based payments - 1,371 - - - - - 1,371
Dividends reinvested 3 9,301 - - - - - - 9,301
Employee LTI shares exercised 3 6,353 - - - - - - 6,353
Balance at 31 December 2019 947,465 5,308 (7,761) 348,937 (3,832) (5,360) (2,829) 1,281,928
6
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2020
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Year ended
30 June 2020 (audited):
Opening balance 931,811 3,937 (10,792) 323,635 (1,054) (5,206) (3,071) 1,239,260
Profit for the period - - - 162,518 - - (1,002) 161,516
Other comprehensive income for
the period, net of tax
-
- (7,378) - 926
(1,648) - (8,100)
Payment of dividends 4 - - - (114,141) - - - (114,141)
Share based payments - 2,664 - - - - - 2,664
Dividends reinvested 3 23,032 - - - - - - 23,032
Employee LTI shares exercised 3 6,353 - - - - - - 6,353
Employee share plan shares
issued 3 358
-
- - -
-
-
358
Employee share issue costs 3 (68) - - - - - - (68)
Balance at 30 June 2020 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
7
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2020
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2020 (unaudited):
Opening balance 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
Profit for the period - - - 92,865 - - 104 92,969
Other comprehensive income for
the period, net of tax
-
- (13) - (847)
(384) - (1,244)
Payment of dividends 4 - - - (59,225) - - - (59,225)
Share based payments - 2,183 - - - - - 2,183
Dividends reinvested 3 27,553 - - - - - - 27,553
Employee LTI shares exercised 3 3,056 - - - - - - 3,056
Employee share plan shares
issued 3 825
-
- - -
-
-
825
Employee share issue costs 3 (70) - - - - - - (70)
Balance at 31 December 2020 992,850 8,784 (18,183) 405,652 (975) (7,238) (3,969) 1,376,921
8
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2020
Notes
31 Dec 20
A$’000
(unaudited)
31 Dec 19
A$’000
(unaudited)
30 Jun 20
A$’000
(audited)
Current assets
Cash and cash equivalents 294,076 274,420 244,778
Trade and other receivables 1,098,930 1,107,458 1,022,587
Prepayments 18,832 12,496 12,484
Inventories
759,360
728,726
737,699
Current tax refundable 1,574 13,774 2,177
Other financial assets – derivatives 8 - - 109
Total current assets 2,172,772 2,136,874 2,019,834
Non-current assets
Property, plant and equipment 169,049 172,992 173,704
Capital work in progress 5,930 12,343 5,783
Prepayments 160 517 327
Deferred tax assets
131,025
125,712
131,039
Goodwill 10 993,941 966,763 969,623
Indefinite life intangibles 122,716 123,856 122,500
Finite life intangibles 42,145 41,870 43,792
Right of use assets
210,156
228,408
222,931
Investment in associates 44,229 42,607 46,679
Other financial assets 10,266 7,008 10,578
Total non-current assets 1,729,617 1,722,076 1,726,956
Total assets
3,902,389
3,858,950
3,746,790
Current liabilities
Trade and other payables 1,481,764 1,458,159 1,413,914
Bank loans
7
327,856 202,189 246,921
Lease liabilities 35,324 34,737 33,846
Current tax payable 22,357 20,375 17,505
Employee benefits 45,275 35,071 42,774
Other financial liabilities – derivatives 8 13,059 10,324 12,629
Total current liabilities 1,925,635 1,760,855 1,767,589
Non-current liabilities
Bank loans 7 275,000 464,209 324,916
Lease liabilities
191,197
205,999
203,300
Trade and other payables 3,315 3,355 3,988
Deferred tax liabilities 122,611 135,715 128,825
Employee benefits 7,710 6,889 7,298
Total non-current liabilities
599,833 816,167 668,327
Total liabilities 2,525,468 2,577,022 2,435,916
Net assets 1,376,921 1,281,928 1,310,874
Equity
Share capital 3 992,850 947,465 961,486
Share based payments reserve 8,784 5,308 6,601
Foreign currency translation reserve
(18,183) (7,761) (18,170)
Retained earnings 405,652 348,937 372,012
Equity instruments fair valued through other
comprehensive income
(975) (3,832) (128)
Cash flow hedge reserve (7,238) (5,360) (6,854)
Equity attributable to owners of the company 1,380,890 1,284,757 1,314,947
Non-controlling interests
(3,969) (2,829) (4,073)
Total equity 1,376,921 1,281,928 1,310,874
9
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2020
Notes
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Cash flows from operating activities
Receipts from sale of goods and services
4,649,732 4,204,450 8,725,652
Interest received
292 761 1,387
Dividends received from associates
5,477 315 630
Payments for purchase of goods and services
(4,501,207) (4,082,531) (8,397,655)
Taxes paid
(41,205) (32,579) (69,037)
Interest paid
(14,343) (16,188) (31,785)
Net cash inflow from operating activities
5 98,746 74,228 229,192
Cash flows from investing activities
Sale of property, plant and equipment
77 346 369
Purchase of property, plant and equipment
(6,191) (5,429) (18,310)
Payments for capital work in progress
(1,720) (6,018) (5,918)
Payments for intangible assets
(2,312) (2,583) (5,053)
Investment in associates
- - (3,694)
Acquisition of subsidiaries
10 (22,936) (30,261) (40,868)
Investment in other financial assets
(497) - 143
Net cash (outflow) from investing activities
(33,579) (43,945) (73,331)
Cash flows from financing activities
Proceeds from issue of shares
3 31,364 15,654 29,675
Proceeds from borrowings
62,420 132,972 40,630
Repayment of borrowings
(31,740) - (1,236)
Repayment of lease liabilities
(17,424) (15,451) (31,957)
Dividends paid to equity holders of parent
(61,147) (55,508) (111,834)
Net cash (outflow)/inflow from financing activities
(16,527) 77,667 (74,722)
Net increase in cash held
48,640 107,950 81,139
Effect of exchange rate fluctuations on cash held
658 (150) (2,981)
Net cash and cash equivalents at beginning of period
244,778 166,620 166,620
Net cash and cash equivalents at end of period
294,076 274,420 244,778
10
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2020
1. FINANCIAL STATEMENTS
These unaudited condensed consolidated interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZGAAP”). They comply with the New Zealand Equivalent to International Accounting
Standard 34 (NZ IAS 34) Interim Financial Reporting and International Accounting Standard IAS 34.
EBOS Group Limited (‘the Company’) is a profit-oriented company incorporated in New Zealand, registered under the Companies
Act 1993 and dual listed on both the New Zealand Stock Exchange and the Australian Securities Exchange.
The Company is a Tier 1 for-profit entity in terms of the New Zealand External Reporting Board Standard A1.
The Company is a FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013, and its financial statements
comply with this Act.
These financial statements should be read in conjunction with the financial statements and related notes included in the Group’s
Annual Report for the year ended 30 June 2020.
The accounting policies adopted are consistent with those of the previous year.
The information is presented in thousands of Australian dollars unless otherwise stated.
2. PROFIT FROM OPERATIONS
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
(a)
Revenue
Community Pharmacy
2,683,823 2,561,903 5,090,153
Institutional Healthcare
1,360,648 1,252,258 2,565,111
Contract Logistics Services
42,886 36,225 74,107
Contract Logistics Sales
354,384
310,148
638,149
Consumer Products
52,062 57,905 115,438
Interdivisional eliminations
(84,284) (52,935) (142,530)
Healthcare
4,409,519 4,165,504 8,340,428
Animal Care
243,779
210,623
425,112
4,653,298 4,376,127 8,765,540
11
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
2. PROFIT FROM OPERATIONS (Continued)
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
(b)
Profit before income tax expense
Profit before income tax has been arrived at
after charging the following expenses by
nature:
One-off items (1)
(1,921)
(1,240)
(2,600)
Cost of sales
(4,160,581) (3,924,743) (7,843,282)
Write-down of inventory
(4,157) (1,976) (4,450)
Impairment loss on trade and other
receivables
(412) (617) (1,095)
Depreciation of property, plant and
equipment
(10,387) (9,480) (19,523)
Depreciation on right of use assets
(19,875)
(18,139)
(37,347)
Amortisation of finite life intangibles
(6,047) (8,231) (16,276)
Operating lease and rental expenses
(2,278) (2,515) (5,091)
Donations
(48) (45) (419)
Employee benefit expense
(163,075)
(145,443)
(302,535)
Defined contribution plan expense
(9,013) (8,578) (17,222)
Other expenses
(132,449) (125,397) (258,602)
Total expenses
(4,510,243) (4,246,404) (8,508,442)
(1) One-off items comprise merger and acquisition costs.
3. SHARE CAPITAL
Six months
31 Dec 20
Six months
31 Dec 19
Year ended
30 Jun 20
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(audited)
Fully paid ordinary
shares
Balance at beginning
of period
162,864
961,486
161,708
931,811
161,708
931,811
Dividend reinvested –
April
- - - - 724 13,731
October
1,233
27,553
415
9,301
415
9,301
Issue of shares to staff
under employee share
plan
37 825 - - 17 358
Employee share issue
costs
- (70) - - - (68)
Shares vested under
the long term
executive incentive
scheme
- 3,056 - 6,353 - 6,353
164,134
992,850
162,123
947,465
162,864
961,486
12
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
4. DIVIDENDS
AUD
Six months
31 Dec 20
AUD
Six months
31 Dec 19
AUD
Year ended
30 Jun 20
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(audited)
Recognised amounts
Fully paid ordinary shares
Final – prior year
36.5 59,225 35.0 56,378 35.0 56,378
Interim – current year
- - - - 35.9 57,763
36.5 59,225 35.0 56,378 70.9 114,141
Unrecognised amounts
Final dividend
- - - - 37.4 60,846
Interim dividend
39.9 65,460 36.1 58,468 - -
39.9 65,460 36.1 58,468 37.4 60,846
Dividends are approved by the Board in New Zealand dollars. Dividends recognised in the Statement of Changes in Equity are
converted from New Zealand dollars to Australian Dollars at the exchange rate applicable on the date the dividend was approved.
Unrecognised dividends are converted at the exchange rate applicable on the reporting date. The Board approved an interim
dividend of 42.5 New Zealand cents per share on 16 February 2021. The record date for the dividend is 12 March 2021 and the
dividend will be paid on 1 April 2021.
The following table shows dividends approved in New Zealand dollars:
Six months
Six months
Year ended
31 Dec 20
NZD
31 Dec 2019
NZD
30 Jun 20
NZD
Cents per
share
Cents per
share
Cents per
share
Recognised amounts
Fully paid ordinary shares
Final – prior year
40.0 37.0 37.0
Interim – current year
- - 37.5
40.0 37.0 74.5
Unrecognised amounts
Final dividend
- - 40.0
Interim dividend
42.5 37.5 -
42.5 37.5 40.0
New Zealand dollar dividends paid to equity holders of the parent are translated into Australian dollars and disclosed in the cash
flow statement at the foreign currency exchange rate applicable on the date they are paid.
13
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
5. NOTES TO THE CASH FLOW STATEMENT
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Reconciliation of profit for the period with cash
flows from operating activities
Profit for the period
92,969
81,922
161,516
Add/(less) non-cash items:
Depreciation of property, plant and equipment
10,387 9,480 19,523
Depreciation on right of use assets
19,875 18,139 37,347
Amortisation of finite life intangibles
6,047
8,231
16,276
(Gain)/loss on sale of property, plant and
equipment
(70) 51 88
Share of profits from associates, net of dividends
received
(2,855) (1,632) (3,355)
Expense recognised in respect of share based
payments
2,183 1,371 2,664
Deferred tax
(5,158) 8,227 (3,253)
30,409
43,867
69,290
Movements in working capital:
Trade and other receivables
(76,343) (209,662) (124,791)
Prepayments
(6,181) (2,760) (2,558)
Inventories
(21,661) (5,209) (14,182)
Current tax refundable/payable
5,455 (6,199) 2,528
Trade and other payables
67,177 159,254 115,642
Employee benefits
2,913 (5,457) 2,655
Foreign currency translation of working capital
balances
387 158 210
(28,253) (69,875) (20,496)
Balances classified as investing activities
(3,784) 9,610 10,092
Working capital items acquired on acquisition
7,405 8,704 8,790
Net cash inflow from operating activities
98,746 74,228 229,192
14
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
6. SEGMENT INFORMATION
(a) Products and services from which reportable segments derive their revenues
The Group’s reportable segments under NZ IFRS 8 Operating Segments are as follows:
Healthcare: Incorporates the sale of healthcare products in a range of sectors, own brands, retail healthcare, pharmacy
services and wholesale activities.
Animal Care: Incorporates the sale of animal care products in a range of sectors, own brands, retail and wholesale activities.
Corporate: Includes net funding costs and central administration expenses that have not been allocated to the Healthcare or
Animal Care segments.
(b) Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Six months ended 31 December 2020
(unaudited):
Revenue from external customers
4,409,519 243,779 - 4,653,298
EBITDA
159,427 33,924 (11,132) 182,219
Depreciation of property, plant and
equipment
(9,964)
(423)
-
(10,387)
Depreciation on right of use assets
(16,635) (2,668) (572) (19,875)
Amortisation of finite life intangibles
(5,951) (96) - (6,047)
EBIT
126,877 30,737 (11,704) 145,910
Net finance costs
- - (14,051) (14,051)
Income tax (expense)/credit
(37,141) (8,467) 6,718 (38,890)
Profit for the period
89,736 22,270 (19,037) 92,969
Non-controlling interests
(104) - - (104)
Profit for the period attributable to
owners of the Company
89,632 22,270 (19,037) 92,865
‘
Six months ended 31 December 2019
(unaudited):
Revenue from external customers
4,165,504 210,623 - 4,376,127
EBITDA
145,833 28,490 (7,118) 167,205
Depreciation of property, plant and
equipment
(9,081)
(399)
-
(9,480)
Depreciation on right of use assets
(14,956) (2,611) (572) (18,139)
Amortisation of finite life intangibles
(7,224) (1,007) - (8,231)
EBIT
114,572 24,473 (7,690) 131,355
Net finance costs
- - (15,427) (15,427)
Income tax (expense)/credit
(33,710) (6,789) 6,493 (34,006)
Profit for the period
80,862 17,684 (16,624) 81,922
Non-controlling interests
(242) - - (242)
Profit for the period attributable to
owners of the Company
80,620 17,684 (16,624) 81,680
15
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
6. SEGMENT INFORMATION (Continued)
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Year ended 30 June 2020
(audited):
Revenue from external customers
8,340,428 425,112 - 8,765,540
EBITDA
290,408 57,658 (14,467) 333,599
Depreciation of property, plant and
equipment
(18,724)
(799)
-
(19,523)
Depreciation on right of use assets
(31,012) (5,193) (1,142) (37,347)
Amortisation of finite life intangibles
(14,416) (1,860) - (16,276)
EBIT
226,256 49,806 (15,609) 260,453
Net finance costs
- - (30,396) (30,396)
Income tax (expense)/credit
(64,769) (13,864) 10,092 (68,541)
Profit for the year
161,487 35,942 (35,913) 161,516
Non-controlling interests
1,002 - - 1,002
Profit for the year attributable to
owners of the Company
162,489 35,942 (35,913) 162,518
16
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
6. SEGMENT INFORMATION (Continued)
The accounting policies of the reportable segments are consistent with the Group’s accounting policies. Segment result
represents profit before depreciation, amortisation, net finance costs and tax. This is the measure reported to the chief
operating decision maker for the purposes of resource allocation and assessment of segment performance.
(c) Segment assets
The following balance sheet and cash flow items are not allocated to operating segments as they are not reported to the
chief operating decision maker at a segment level:
- Assets
- Liabilities
- Capital expenditure
(d) Revenues from major products and services
The Group’s major products and services are transacted the same as its reportable segments i.e. Healthcare, Animal Care and
Corporate.
(e) Geographical information
The Group operates in two principal geographical areas; New Zealand (country of domicile) and Australia.
The Group’s revenue from external customers by geographical location (of the reportable segment) and information about its
segment assets (non-current assets excluding investments in associates and deferred tax assets) are detailed below:
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Revenue from external customers
New Zealand
927,077 861,857 1,720,144
Australia
3,726,221 3,514,270 7,045,396
4,653,298 4,376,127 8,765,540
Non-current assets
New Zealand
353,173 362,616 354,416
Australia
1,201,190 1,191,141 1,194,822
1,554,363 1,553,757 1,549,238
(f) Information about major customers
No revenues from transactions that are with a single customer amount to 10% or more of EBOS’ revenues for the period
(December 2019: Nil, June 2020: Nil).
7. BANK FACILITY AND BORROWINGS
The Group fully complies with and operates within the financial covenants under the arrangements with its bankers. At 31
December 2020 the Group had unutilised term and working capital facilities of $331.9m (December 2019: $171.9m, June 2020:
$300.3m).
The Group also has a trade debtor securitisation facility of which $158.2m was unutilised at 31 December 2020 (December 2019:
$198.0m, June 2020: $220.6m).
17
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
7. BANK FACILITY AND BORROWINGS (Continued)
As at 31 December 2020, the maturity profile of the Group’s term debt and securitisation facilities was:
Facility Amount Maturity
Term debt facilities (i) $150.0m Less than 1 year
Term debt facilities $543.0m 2-3 years
Securitisation facility $400.0m 2-3 years
(i) Subsequent to 31 December 2020, the Group refinanced $443.0m of bank term loans and working capital facilities. The
limit was increased to $465.0m and the maturity dates were extended to February 2024 for $172.0m of debt facilities
and May 2025 for $293.0m of debt facilities.
8. FINANCIAL INSTRUMENTS
The Group enters into forward foreign currency exchange contracts to hedge trading transactions, including anticipated
transactions, denominated in foreign currencies and uses interest rate swaps to manage cash flow interest rate risk.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the
nature of the hedge relationship. The Group designates certain derivatives as cash flow hedges of highly probable forecast
transactions.
Fair value of derivative financial instruments
Six months
31 Dec 20
A$’000
(unaudited)
Six months
31 Dec 19
A$’000
(unaudited)
Year ended
30 Jun 20
A$’000
(audited)
Other financial assets – derivatives (at fair value)
Forward foreign exchange contracts
- - 109
- - 109
Other financial liabilities – derivatives (at fair value)
Forward foreign exchange contracts
(3,179) (454) (367)
Interest rate swaps
(9,880) (9,870) (12,262)
(13,059) (10,324) (12,629)
The Group has categorised these derivatives, both financial assets and financial liabilities, as Level 2 under the fair value
hierarchy contained within NZ IFRS 13 Fair Value Measurement.
The fair value of foreign currency forward exchange contracts is determined using a discounted cash flow valuation. Key inputs
include observable forward exchange rates, at the measurement date, with the resulting value discounted back to present
values.
Interest rate swaps are valued using a discounted cash flow valuation. Key inputs for the valuation of interest rate swaps are the
estimated future cash flows based on observable yield curves at the end of the reporting period, discounted at a rate that
reflects the credit risk of the various counterparties.
There have been no changes in valuation techniques used for either forward foreign currency exchange contracts or interest rate
swaps during the current reporting period.
18
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
9. IMPACT OF NEW ACCOUNTING STANDARDS
In the current period the Group has adopted all mandatory new and amended standards and interpretations.
10. ACQUISITION INFORMATION
The following acquisitions of subsidiaries took place during the period.
Name of business acquired
Principal
activities
Date of
acquisition
Cost of
acquisition
A$’000
2021:
100% of the assets and liabilities of Cryomed (Cryomed)
Healthcare October 2020 22,028
100% of the assets of CH2 Vet
Animal Care November 2020 9,242
31,270
Combined details of acquisitions undertaken during the current period are as follows:
Carrying value
A$’000
(unaudited)
Fair value
adjustment
A$’000
(unaudited)
Fair value on
acquisition
A$’000
(unaudited)
Current assets
Trade and other receivables
2,528 (103)
1
2,425
Prepayments
8 - 8
Inventories
7,627 (1,499)
2
6,128
Non-current assets
Deferred tax assets
- 570
3
570
Current liabilities
Trade and other payables
(789) (294)
4
(1,083)
Employee benefits
(73) - (73)
Net assets acquired
9,301 (1,326) 7,975
Goodwill on acquisition
23,295
Total consideration 31,270
Less deferred purchase consideration (8,334)
Net cash outflow from acquisition 22,936
1. To recognise the fair value of trade and other receivables on acquisition.
2. To recognise the fair value of inventories on acquisition.
3. To recognise deferred tax assets on acquisition.
4. To recognise the fair value of trade and other payables on acquisition.
Due to the timing of the acquisitions the above figures have not yet been finalised and are currently considered provisional.
19
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2020
10. ACQUISITION INFORMATION (Continued)
Goodwill arose on the acquisition of the business operations of Cryomed and CH2 Vet because the cost of acquisition included a
control premium paid. In addition, goodwill resulted from the consideration paid for the benefit of future expected cash flows
above the current fair value of the assets acquired and the expected synergies and future market benefits expected to be obtained.
These benefits are not recognised separately from goodwill as the expected future economic benefits arising cannot be reliably
measured and they do not meet the definition of identifiable intangible assets.
Cryomed was acquired as it is a profitable Australasian medical device business which the Group believes fits strategically with its
Australasian healthcare business assets.
CH2 Vet was acquired as it is a profitable Australian animal care business which the Group believes fits strategically with its
Australian animal care business assets.
Deferred consideration of $8.3m has been recognised as future EBITDA earn out targets of the businesses acquired, on which the
consideration is payable, are expected to be achieved.
The impact of the acquisitions on the results of the Group are not considered material and are therefore not disclosed in the Interim
Report.
11. EVENTS AFTER BALANCE DATE
Subsequent to 31 December 2020, the Board approved an interim dividend to shareholders. For further details please refer to
Note 4.
Subsequent to 31 December 2020, the Group refinanced $443.0m of bank term loans and working capital facilities. For further
details please refer to Note 7.
20
EBOS GROUP LIMITED
DIRECTORY
CORPORATE HEAD OFFICE AUSTRALIA HEAD OFFICE
108 Wrights Road Level 7, 737 Bourke Street
PO Box 411 Docklands 3008
Christchurch 8024 Melbourne
New Zealand Australia
Telephone +64 3 338 0999 Telephone +61 3 9918 5555
E-mail: ebos@ebos.co.nz Email: ebos@ebosgroup.com
WEBSITE ADDRESS
www.ebosgroup.com
DIRECTORS
Elizabeth Coutts Independent Chair
Nick Dowling Independent Director
Stuart McGregor
Stuart McLauchlan Independent Director
Sarah Ottrey Independent Director
Peter Williams
SHARE REGISTER
Computershare Investor Services Ltd Computershare Investor Services Pty Ltd
Private Bag 92119 GPO Box 3329
Auckland 1142 Melbourne, Victoria 3001
New Zealand Australia
Telephone: +64 9 488 8777 Telephone: 1800 501 366
Managing Your Shareholding Online:
To change your address, update your payment instructions and to view your investment portfolio including transactions, please visit:
www.computershare.com/investorcentre
General enquiries can be directed to:
• enquiry@computershare.co.nz
• Private Bag 92119, Auckland 1142, New Zealand or GPO Box 3329, Melbourne, Victoria 3001, Australia
• Telephone (NZ) +64 9 488 8777 or (Aust) 1800 501 366
• Facsimile (NZ) +64 9 488 8787 or (Aust) +61 3 9473 2500
Please assist our registrar by quoting your CSN or shareholder number.
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer EBOS Group Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency AUD
Amount (000s) Percentage change
Revenue from continuing operations $4,653,298 6.3%
Total Revenue $4,653,298 6.3%
Underlying net profit from continuing
operations attributable to security holders
1
$94,346 14.2%
Net profit/(loss) from continuing operations $92,865 13.7%
Total net profit/(loss) $92,865 13.7%
Interim Dividend
Amount per Quoted Equity Security $ 0.425
Imputed amount per Quoted Equity Security $ 0.04131944
Record Date 5 March 2021
Dividend Payment Date 18 March 2021
Current period Prior comparable
period
Net tangible assets per Quoted Equity Security
2
($0.75) ($1.26)
A brief explanation of any of the figures above
necessary to enable the figures to be
understood
Refer to attached Results Presentation,
Media Release and Letter to Shareholders
Authority for this announcement
Name of person
authorised to make this
announcement
Janelle Cain
Contact person for this announcement Janelle Cain
Contact phone number +61 3 9918 5370
Contact email address Janelle.Cain@ebosgroup.com
Date of release through MAP
17 February 2021
Unaudited condensed consolidated interim financial statements accompany this announcement.
1
Underlying net profit represents reported profit for the period adjusted for one-off costs in relation to merger and
acquisition transaction costs incurred ($1.9m). Refer to Appendix 1 for reconciliation between reported and underlying
earnings.
2
Net Tangible Assets excludes $210.2m (H1 FY20: $228.4m) of Right of Use assets but includes $226.5m (H1 FY20:
$240.7m) of lease liabilities recognised in accordance with NZ IFRS 16 ‘Leases’.
Appendix 1:
Reconciliation of Reported vs Underlying
Earnings
(Unaudited)
31 December 2020
AUD $000
31 December 2019
AUD $000
Change
%
Reported EBITDA 182,219 167,205 9.0%
Add back one-off costs incurred during the period
3
1,921 1,240 54.9%
Underlying EBITDA 184,140 168,445 9.3%
Reported EBIT 145,910 131,355 11.1%
Add back one-off costs incurred during the period
3
1,921 1,240 54.9%
Underlying EBIT 147,831 132,595 11.5%
Reported Net Profit after Tax (NPAT)
attributable to owners of the Company
92,865 81,680 13.7%
Add back one-off costs incurred during the period
3
(net of tax and after non-controlling interests) 1,481 969 52.8%
Underlying Net Profit after Tax (NPAT)
attributable to owners of the Company
94,346 82,649 14.2%
Underlying EBITDA, Underling EBIT and Underlying Net Profit after Tax attributable to the owners of the
Company are non-GAAP measures, which adjust for the effects of one-off costs.
3
The six months to 31 December 2020 one-off costs comprise merger and acquisition transaction costs of
$1.9m (2019: $1.2m) on a pre-tax basis ($1.5m (2019: $1.0m) on a post-tax basis).
---
Distribution Notice
Section 1: Issuer information
Name of issuer EBOS Group Limited
Financial product name/description Ordinary Shares
NZX ticker code EBO
ISIN (If unknown, check on NZX
website)
NZEBOE0001S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 5 March 2021
Ex-Date (one business day before the
Record Date)
4 March 2021
Payment date 18 March 2021
Total monies associated with the
distribution
1
NZD$69,756,983
(AUD$65,459,953)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.46631944
Gross taxable amount
3
$0.46631944
Total cash distribution
4
$0.42500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01875000
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Partial imputation
If fully or partially imputed, please
state imputation rate as % applied
6
8.86%
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Imputation tax credits per financial
product
$0.04131944
Resident Withholding Tax per
financial product
$0.11256597
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Janelle Cain
Contact person for this
announcement
Janelle Cain
Contact phone number +61 3 9918 5370
Contact email address Janelle.Cain@ebosgroup.com
Date of release through MAP
17 February 2021
---
EBOS GROUP LIMITED
(“Company”)
Directors’ Declaration in respect of the Group Financial Statements
for the six months ended 31 December 2020
Declaration
The Directors of the Company hereby declare that, in the Directors’ opinion:
• The EBOS Group Limited condensed consolidated interim unaudited financial statements for
the six months ended 31 December 2020 and the notes to those financial statements comply
with the accounting standards issued by the External Reporting Board of New Zealand;
• The EBOS Group Limited condensed consolidated interim unaudited financial statements for
the six months ended 31 December 2020 and the notes to those financial statements give a
true and fair view of the financial position and performance of the Company; and
• There are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
This declaration is made in accordance with a resolution of the directors dated 16 February 2021 and
is signed for and on behalf of directors by the board chairman.
Signed
E Coutts
Chairperson
16 February 2021
---
2O21 HALF YEAR RESULTS
Dear Shareholder
EBOS has maintained its strong momentum
through the first half of the 2021 financial
year with another record result, reporting
double-digit earnings growth across the
business and further improved returns for
our valued shareholders.
Despite the significant challenges of 2020, EBOS has
remained committed to our proven strategy of driving
organic growth in our leading Healthcare and Animal
Care businesses in New Zealand and Australia, combined
with disciplined capital management. This enables
investing for further growth through complementary
acquisitions and capital investments, as well as
increasing dividends to our shareholders.
It is this adherence to our core business strategy that
has ensured EBOS has maintained our unwavering
commitment to delivering the highest standards of
customer service and increased returns for shareholders.
31 December 2020
Key Highlights
Financial Highlights
$4.7 billion revenue +6.3% increase
$147.8 million EBIT +11.5% increase
$94.3 million NPAT +14.2% increase
Underlying Results
1
57.8c + 12.7%
underlying earnings per share
NZ 42.5c + 13.3%
dividends per share
$4.7b + 6.3%
revenue
Underlying EBIT
Six months to 31 December ($millions)
110.5
2017
116.1
2018
132.6
2019
147.8
20202016
104.6
Underlying net profit after tax
Six months to 31 December ($millions)
69.9
2017
72.7
2018
82.6
2019
94.3
20202016
66.6
INTERIM
SHAREHOLDERS
REPORT
2O21
1
Underlying results exclude the impact of one-off M&A transaction costs of $1.9m (2019: $1.2m).
2EBOS GROUP 2O21 INTERIM SHAREHOLDERS REPORT
Key highlights of the first half included:
• Revenue of $4.7 billion (up 6.3%);
• Statutory Net Profit after Tax (NPAT) of $92.9 million
(up 13.7%);
• Underlying Net Profit after Tax (Underlying NPAT) of
$94.3 million (up 14.2%);
• Interim dividend declared of NZ 42.5 cents per share
(up 13.3%);
• Very strong performances from both our Healthcare
and Animal Care segments, with Healthcare’s
Underlying EBIT up 11.2% and Animal Care’s EBIT
up 25.6%;
• Excellent operating cash flow of $98.7 million (up 33.0%);
• Acquisition of CH2’s vet distribution business for
approximately $9 million, which further strengthens
Lyppard’s market position in this sector. This adds to the
previously announced acquisition of Cryomed, which
further expands our medical devices business; and
• Further strengthening of our balance sheet, with Net
Debt : EBITDA reducing to 1.00x (1.11x at June 2020).
Following further refinancing initiatives in August 2020
and February 2021, EBOS has no debt maturities until
2H FY23.
The half year financial performance was a record for
EBOS and included some significant highlights for
shareholders. EBOS generated revenue of $4.7 billion
and Underlying EBIT of $147.8 million, up 6.3% and 11.5%
respectively on the prior corresponding period. Growth
over the reporting period was underpinned by very
strong performances in both our Healthcare and Animal
Care segments.
Healthcare
Our Healthcare segment generated revenue of $4.4
billion and Underlying EBIT of $128.8 million, an increase
of 5.9% and 11.2% respectively on the prior corresponding
period. This growth was driven by the performances
of our Community Pharmacy, TerryWhite Chemmart
(“TWC”), Institutional Healthcare and Contract Logistics
businesses.
In Australia, Healthcare revenue increased to $3.5
billion and Underlying EBIT increased to $108.5 million,
an increase of 5.5% and 11.3% respectively. This growth
is pleasing given that it cycles and further builds upon
our record result achieved in FY20, which was driven
primarily by increased Community Pharmacy
wholesale volumes.
In New Zealand, Healthcare revenue increased to $896
million and Underlying EBIT increased to $20.3 million,
an increase of 7.4% and 11.0% respectively. This strong
growth is also pleasing as it represents a rebound
following a softer result in FY20.
Community Pharmacy revenue increased by $121.9
million (up 4.8%) due to continued above market growth
by major wholesale customers and further productivity
improvements across all sites, particularly from our
Brisbane distribution facility.
TWC welcomed 22 new pharmacies during the period,
which is the largest six month increase of network stores
on record. This builds on store growth in previous periods
and further strengthens TWC’s position as Australia’s
largest health-advice oriented community pharmacy
network. TWC network sales grew by 5.8% and, on a
like-for-like basis, increased by 4.2%. This performance
was driven by new store growth, continued increases
in media spend (up 40% in the first half) and improved
promotional and category initiatives.
Institutional Healthcare continued to perform well with
first half revenue growth of $108.4 million (up 8.7%),
largely from increases in demand for new specialty
medicines, combined with strong growth in the medical
consumables sector and a further acquisition in the
medical devices sector.
In October 2020, EBOS acquired Cryomed for
approximately $14 million. Cryomed was established in
2013 and markets and distributes medical devices and
consumables used in aesthetic procedures in Australia
and New Zealand. This represents our second acquisition
in the medical devices sector and we will continue to
pursue growth opportunities through further bolt-on
acquisitions, with the objective of building a significant
business for EBOS in this sector. As a truly independent
partner we can provide long term growth opportunities to
both existing and new Original Equipment Manufacturers
as we bring our experienced management, capital
resources and strong hospital relationships to the
Australian and New Zealand markets.
Contract Logistics increased Gross Operating Revenue
(“GOR”) by $4.7 million (up 12.0%), attributable to existing
customer growth and increased volumes in New Zealand
to service customer requirements mainly for personal
protective equipment and COVID-19 testing kits.
Consumer Products revenue declined by $5.8 million
(down 10.1%). Our performance was impacted by
COVID-19 with lower retail and daigou sales and category
declines. The business is pursuing a range of customer
and product initiatives to restore performance both
domestically and in overseas markets.
Animal Care
Our Animal Care segment generated revenue of $243.8
million and EBIT of $30.7 million, an increase of 15.7% and
25.6% respectively on the prior corresponding period.
The Animal Care segment continues to benefit from the
strength of our trusted brands and market positions,
combined with the strong tailwinds of the Australian
and New Zealand pet care market. Well established
market trends including increasing pet ownership, the
humanisation of pets, premiumisation of products and
increased use of outsourced services, have been driving
structural growth in the pet care market for several
years. These trends accelerated further as a result of
COVID-19, resulting in people spending more time at
home with their pets.
3EBOS GROUP 2O21 INTERIM SHAREHOLDERS REPORT
Segment Overview
HealthcareAnimal Care
Our key brands, Black Hawk and Vitapet, both recorded
strong increases in revenue, up 11.8% and 11.4%
respectively. Black Hawk increased market share in New
Zealand and Vitapet increased market share in Australia,
benefiting from continued marketing investment. In
addition, our Accessory Products category brands
generated strong sales growth, benefitting from the
launch of new products such as flea treatment.
In November 2020, EBOS acquired the vet distribution
business of CH2 for approximately $9 million and
integrated it with Lyppard, our Australian vet wholesaling
business. This acquisition further consolidates Lyppard’s
position in the Australian vet distribution market.
Community
EBOS is committed to meeting community expectations
with our behaviour and actions reflecting positively in the
communities where we operate.
In 2020, EBOS commenced the process of implementing
a formal Environmental, Social and Governance (“ESG”)
Program to ensure we measure and build on our ESG
responsibilities. This process has included consultation
with a broad range of internal and external stakeholders
in both New Zealand and Australia to gain a greater
understanding of the expectations of what a robust ESG
Program should deliver.
As an organisation, we acknowledge that we have
a responsibility to our stakeholders and the wider
community to conduct our business in a socially
responsible manner and act as a good corporate citizen.
Importantly, the way in which we articulate, deliver, and
measure this activity drives perceptions, opinions and
trust among key stakeholders and the community and
ultimately ensures we maintain our social license to
operate.
Under the guidance of the Board and an ESG Steering
Committee, our ESG Program will formalise these
responsibilities, ensuring we have a strategic, measurable
and accountable framework in place moving forward.
We will continue to develop our ESG Program, which is
to be finalised in the second half of 2021.
The first half of the FY21 year also marked the
introduction of EBOS’ first Reconciliation Action
Plan (“RAP”), which formalises our commitment to
reconciliation between Aboriginal and Torres Strait
Islander peoples and the broader Australian population.
Developed in consultation with Reconciliation Australia,
our RAP sets out EBOS’ vision to develop greater
organisational awareness and understanding of
Australia’s First Peoples history and cultures and to
create a society that is fair, equal and just for all.
Our RAP incorporates clear guiding principles for our
journey of reconciliation, ensuring that we turn our vision
into meaningful actions and outcomes as we together
work toward a more reconciled Australia. In November
2020, the company celebrated our first NAIDOC Week,
featuring a number of informative activities aimed at
gaining a deeper understanding of the history and culture
of Aboriginal and Torres Strait Islander Australians.
COVID-19 Update
In what is a dynamic and ever-changing environment,
EBOS continues to stringently follow the COVID-19
protocols and advice of the local authorities relevant to
our New Zealand and Australian locations and operations.
Currently, the majority of EBOS employees are working on
site, albeit in some instances following a week in/week out
rotation, in line with the various regional restrictions.
The EBOS Pandemic Response Team, formed in the early
stages of the pandemic and consisting of the CEO and his
direct reports, continues to oversee all COVID-19 related
matters, including the safety of our employees, with the
structure and resources in place to manage the constantly
changing situation in New Zealand and Australia.
EBOS’ employees have shown extraordinary commitment
in facing the many challenges throughout the COVID-19
situation. We know that these challenges will continue for
Underlying EBIT
Six months to 31 December ($millions)
Excludes the impact of one-off items.
95.5
2017
99.2
2018
115.8
2019
128.8
20202016
91.5
EBIT
Six months to 31 December ($millions)
20.5
2017
22.9
2018
24.5
2019
30.7
20202016
18.4
4EBOS GROUP 2O21 INTERIM SHAREHOLDERS REPORT
ebosgroup.com
Printed on recycled stock
some time but we also know that it is the strength and
resilience that we have seen displayed on a daily basis
that will ensure we all get through these most challenging
of times. The Board wishes to convey their sincere thanks
to everyone at EBOS for continuing to deliver to the
communities we serve and for your ongoing commitment
to our great company. We also commend all of the
pharmacists and healthcare professionals that we serve,
for the enormous amount of work they have done on the
frontline during this pandemic.
Cash Flow, Net Debt and Return on
Capital Employed
First half operating cash flow was excellent at $98.7
million, a 33.0% increase on the prior corresponding
period. The cash performance reflects our strong
earnings growth and continued disciplined working
capital management.
Net capital expenditure for the period was $10.1 million
and primarily comprised spend on multiple operating
sites and IT projects.
During the period, the Group made two strategic
acquisitions, being Cryomed and CH2’s vet distribution
business, for cash consideration of approximately
$23 million.
Return on Capital Employed (“ROCE”) of 17.5% is a record
for the Group and up 0.4% compared to 30 June 2020.
This reflects our strong earnings growth and efficient
capital management.
The Group’s Net Debt : EBITDA ratio at 31 December
2020 was 1.00x reflecting further strengthening of our
balance sheet (1.11x as at 30 June 2020). Current gearing
retains significant capacity to fund investments and
acquisitions.
In February 2021 the Group refinanced $443.0 million
of term debt facilities and upsized the committed
refinanced facilities to $465.0 million. The Group
extended the maturity dates for these debt facilities and
now has no debt maturities until H2 FY23.
Interim Dividend
The Directors declared an interim dividend of NZ 42.5
cents per share, an increase of 13.3% on the prior
corresponding period. This implies a dividend payout
ratio of 69.0%
2
, broadly consistent with recent periods.
Reflecting the Group’s strong operating performance,
cash flow and balance sheet, the Dividend Reinvestment
Plan (“DRP”) will not be available for the interim dividend.
The record date for the dividend is 5 March 2021 and
the dividend will be paid on 18 March 2021. The interim
dividend will be imputed to 25% for New Zealand tax
resident shareholders and fully franked for Australian tax
resident shareholders.
EBOS reiterates its dividend policy of declaring dividends
of not less than 60% of NPAT, although notes that the
average payout ratio over the last five years has been
approximately 70%.
Trading Update
EBOS is pleased with the strong, double-digit earnings
growth achieved during the first half of FY21.
The robust trading conditions that drove our first half
FY21 performance remain in place. In January 2021 we
recorded Group earnings growth at levels consistent
with our first half FY21 growth.
We continue to closely monitor COVID-19 developments
however, the Group is not presently experiencing any
associated material negative financial impacts. Given
EBOS’ scale and market leading positions in stable
industries, as well as our strong balance sheet, we are
well placed to respond to challenges that may arise.
Thank you again for your ongoing support.
Liz Coutts
Chair of the Board
John Cullity
Chief Executive Officer
2
Dividend payout ratio calculated on an underlying basis based on a NZD:AUD exchange rate of 0.933.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.