Half Year Results
22 February 2023
MARKET RELEASE
NZX/ASX Code: EBO
EBOS 2023 Half-Year Results
EBOS HAS ACHIEVED ANOTHER RECORD HALF YEAR RESULT DRIVEN BY BOTH ORGANIC
GROWTH AND THE CONTRIBUTION FROM ACQUISITIONS
Half-Year Highlights
• Revenue of $6.1 billion (up 17.0%)
• Underlying EBITDA of $289.2 million (up 39.3%)
• Underlying NPAT
of $141.6 million (up 29.6%)
• Underlying EPS of 74.5 cents (up 12.0%)
• Interim dividend declared of NZ 53.0 cents per share (up 12.8%)
• Continued strong performances from both our Healthcare and Animal Care segments:
o Healthcare Underlying EBITDA up 37.6% driven by organic growth and contribution from
acquisitions completed in FY22. LifeHealthcare performed in-line with expectations
o Animal Care EBITDA up 31.5% reflecting strong market conditions and benefits of the
investment in our pet food manufacturing facility
• Net Debt : EBITDA of 1.76x (1.94x at June 2022) reflecting a strong cash flow performance
$m
1,2
Underlying Results
3
Statutory Results
Total Revenue $6,145.7m up 17.0% $6,145.7m up 17.0%
EBITDA $289.2m up 39.3% $289.2m up 44.7%
EBIT $239.5m up 41.6% $226.0m up 40.1%
Net Profit after Tax $141.6m up 29.6% $132.2m up 29.8%
Earnings per Share
4
74.5 cents up 12.0% 69.6 cents up 13.3%
Interim Dividend per Share NZ 53 cents up 12.8%
EBITDA margin 4.71% up 76bp 4.71% up 90bp
Operating Cash Flow $161.1m up 40.6% $161.1m up 50.8%
ROCE 14.4% down 3.8%
Net Debt : EBITDA
5
1.76x down 0.18x
1
All amounts included are denoted in Australian dollars unless otherwise stated.
2
Comparisons shown to prior corresponding period with exception of Net Debt : EBITDA, which is compared to June 2022.
3
Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense attributable to the
LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets ($13.5m pre tax, $9.4m post tax).
Underlying earnings for the 31 December 2021 period exclude transaction costs incurred on M&A ($7.8m pre tax, $7.4m
post tax). Refer to Appendix 1 for details.
4
Underlying EPS calculated as Underlying NPAT divided by the weighted average number of shares on issue.
5
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 2023 financial year, with key highlights including revenue growth of 17.0%, Underlying EBITDA
growth of 39.3% and Underlying NPAT growth of 29.6%.
The strong growth and earnings trajectory continues EBOS’ long-term track record of delivering for
its shareholders and is a testament to the combined efforts of our employees across New Zealand,
Australia and Southeast Asia.
In commenting on today’s results announcement, EBOS Chief Executive Officer, John Cullity said:
“We are pleased to report another record profit for EBOS driven by both continued strong organic
growth across our Group businesses as well as substantial contribution from acquisitions, reflecting
the benefits of our strategy of investing for growth. The strength and diversity of our portfolio of
businesses is reflected as both our Healthcare and Animal Care segments contributed strongly to the
overall result and we successfully executed our strategy of pursuing both organic and inorganic
growth.”
Our Healthcare segment benefitted from its leading market positions and had strong contributions
from each of our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and
Contract Logistics divisions and businesses. Each of our divisions in the Healthcare segment recorded
double-digit gross operating revenue (“GOR”) growth with Institutional Healthcare recording
particularly strong growth due to contribution from acquisitions.
The Animal Care segment continued its strong performance with each of our key brands and
divisions – Black Hawk, Vitapet and Lyppard – as well as our Animates joint venture, recording robust
growth. Our pet food manufacturing facility is successfully operating and delivering commercial
production rates that meet Black Hawk demand and support our strategy of new product
development.
In FY22 EBOS completed five acquisitions to significantly expand its medical consumables and
medical technology (previously known as medical devices) distribution businesses. The integration of
these businesses is well progressed and in line with expectations. These acquisitions are recorded
within the Institutional Healthcare division and contributed to substantial growth in H1 FY23.
In commenting on today’s result, EBOS Chair, Elizabeth Coutts said:
“It is pleasing to see EBOS continue its strong growth trajectory and deliver value for our
stakeholders. The significant growth in our earnings reflects our strategy of pursuing organic growth
and investing for growth across both our Healthcare and Animal Care businesses. The success we
have achieved over the long term is the result of the combined efforts of our approximately 5,000
employees across New Zealand, Australia and Southeast Asia. On behalf of the Board I would like to
acknowledge their commitment to our businesses and the communities they serve.”
3
Healthcare
Healthcare ($m) 31 Dec 2022 31 Dec 2021 Growth
Revenue $5,854.6m $4,976.9m 17.6%
Statutory EBITDA $255.0m $177.5m 43.7%
Underlying EBITDA
6
$255.0m $185.2m 37.6%
Underlying EBITDA margin 4.35% 3.72% 63bp
Our Healthcare segment generated revenue of $5.9 billion and Underlying EBITDA of $255.0 million,
an increase of 17.6% and 37.6% respectively on the prior corresponding period. This performance
was driven by our leading market positions and strong contributions from our Community Pharmacy,
TWC, Institutional Healthcare and Contract Logistics divisions and businesses. Each of our divisions in
the Healthcare segment recorded double-digit GOR growth, with Institutional Healthcare recording
particularly strong growth due to contribution from acquisitions completed in FY22.
In Australia, Healthcare revenue increased to $4.8 billion and Underlying EBITDA increased to $203.4
million, an increase of 20.8% and 35.4% respectively. In New Zealand & Southeast Asia, Healthcare
revenue increased to $1.1 billion and Underlying EBITDA increased to $51.6 million, an increase of
5.7% and 47.3% respectively.
Community Pharmacy revenue increased by $578.6 million (up 18.4%), driven by customer and
market share growth, a strong performance from our community pharmacy retail brands including
TWC, above market growth in ethical sales to our major wholesale customers and sales growth of
high value specialty medicines. In addition, the result benefited from higher sales of COVID-19
related products including anti-viral medications and cold and flu OTC products.
Our TWC franchise continues its expansion with an additional 26 net new stores joining the network
during the half. The network now comprises greater than 540 stores nationally. This builds on growth
in prior years and further strengthens TWC’s position as Australia’s largest health advice-oriented
community pharmacy network. TWC network sales demonstrated strong performance with 18.6%
total growth and 15.8% like-for-like growth. A continued focus and investment in our TWC catalogue
and promotional program, increases in media spend, growth in our consumer brands and the
development of the myTWC App, which provides customers with a convenient and safe way to order
and manage medications and bookings, all reinforced TWC’s positive performance.
Institutional Healthcare generated strong revenue growth of $285.6 million (up 19.4%) and GOR
growth of $128.7 million (up 81.3%), driven by the contributions of five acquisitions completed in
FY22, as well as growth in Symbion Hospitals.
6
Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense attributable to the
LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets ($13.5m pre tax, $9.4m post tax).
Underlying earnings for the 31 December 2021 period exclude transaction costs incurred on M&A ($7.8m pre tax, $7.4m
post tax). Refer to Appendix 1 for details.
4
The acquisitions included Pioneer Medical, Sentry Medical, MD Solutions, LifeHealthcare and a small
medical consumables distributor, which together significantly expanded our presence in medical
consumables and medical technology (previously known as medical devices) distribution.
Further progress has been made during the period on the integration of LifeHealthcare into the
Group’s enlarged medical technology division. LifeHealthcare’s financial performance was in-line
with expectations, providing significant earnings growth for the Group. Management now anticipates
that implementation of the integration activities to be undertaken in the second half of the financial
year will result in one-off costs of approximately $12.5 million. The integration activities and
expected costs include rationalisation of operating sites and inventory lines, IT systems integration
and stamp duty. The financial benefits from these activities will be realised in FY24 and beyond.
Contract Logistics increased GOR by $15.7 million (up 26.0%), attributable to growth in Australia from
new and existing principals and growth in New Zealand from continued demand for storage and
servicing of protective equipment.
The Healthcare segment continued to invest in its operational infrastructure to support its growth,
including the construction of new contract logistics distribution centres in Auckland (nearing
completion) and Sydney (ongoing with an expected opening in late 2023).
Animal Care
Animal Care ($m) 31 Dec 2022 31 Dec 2021 Growth
Revenue $291.2m $274.0m 6.3%
EBITDA $51.0m $38.8m 31.5%
EBITDA margin 17.5% 14.1% 340bp
Our Animal Care segment generated revenue of $291.2 million and EBITDA of $51.0 million, an
increase of 6.3% and 31.5% respectively on the prior corresponding period. This growth was driven
by strong performances from our leading brands and businesses (Black Hawk, Vitapet and Lyppard),
the benefits of our new pet food manufacturing facility and growth in Animates, our New Zealand
pet retail joint venture.
Strong pet market conditions have continued and our brands and businesses have benefitted from
this. Black Hawk and Vitapet increased sales by 15.2% and 6.3% respectively on the prior
corresponding period and continued to maintain share leadership in their respective segments.
Our new pet food manufacturing facility is successfully operating with commercial production rates
meeting demand. The facility is enhancing our local supply chain capabilities and providing a
competitive advantage for the Black Hawk range.
5
Cash Flow, Net Debt and Return on Capital Employed
The Group generated underlying operating cash flow of $161.1 million, a 40.6% increase on the prior
corresponding period. This result benefited from both strong earnings growth and our continued
disciplined approach to managing working capital.
Return on Capital Employed (“ROCE”) of 14.4% was below December 2021 by 3.8% and is in-line with
expectations. The reduction in ROCE was due to the long-term investment in building our position in
the medical technology distribution sector through the acquisition of LifeHealthcare. The Group
maintains its 15% ROCE target and aims to exceed this level again in the medium term.
Net Debt : EBITDA ratio at 31 December 2022 was 1.76x (1.94x as at 30 June 2022) reflecting strong
cash flow and earnings growth
7
. Current gearing is within our target range and the Group is well
positioned to support further growth opportunities, with approximately $400 million of debt
headroom.
The Underlying EPS growth rate of 12.0% is lower than the Underlying NPAT growth rate of 29.6%
due to the impact of capital raisings in FY22.
Supply Side Constraints and Cost Increases
Despite operational challenges resulting from supply side constraints, including manufacturer out of
stocks, availability of staff and other key inputs, the Group has delivered another strong
performance. EBOS’ key cost items within the Group are cost of goods sold, labour, freight and rent.
With the current inflationary environment, we have experienced increases in these key cost items to
varying degrees across our businesses (other than fixed regulated cost items).
Each business has various strategies to mitigate these increases and preserve margins. Our Group
Underlying EBITDA margin increased in H1 FY23 by 76 bp as a result of these strategies and
acquisitions of higher margin businesses.
Sustainability and Community
FY22 and the first half of FY23 were significant periods for EBOS’ ESG Program as we progressed new
initiatives and accelerated our ambitions to be a carbon neutral company.
The EBOS Board took decisive action towards carbon neutrality by approving the scoping of an
18.8MW solar array which is forecast to meet all of the Group’s Australian electricity requirements
by FY27.
7
Net debt excludes a put option liability of $137 million, representing the estimated consideration to acquire the remaining
49% equity ownership of the Transmedic business not currently owned by the Group, if the option is exercised.
6
The first phase of this major infrastructure investment includes a 240kW roof-mounted array at our
pet care manufacturing facility at Parkes, NSW. Phase One installation is on target for completion this
year. We are now preparing to deliver the second phase of the project, a 6MW ground-mounted
solar system, which is expected to be completed in FY24.
Last year we set a target to become Carbon Neutral for Scope 1 emissions during FY23. These
emissions include but are not limited to emissions from refrigerants and company motor vehicles and
are on track to be measured and offset prior to the end of the financial year.
We have recently developed a new Ethical Sourcing Strategy which aims to engage suppliers that are
aligned to EBOS’ corporate values. The strategy is supported by a Supplier Code of Conduct and an
Ethical Sourcing Policy which outlines specific supplier requirements on child labour, employee
payments and anti-discrimination and harassment.
Over our 100 years of history, EBOS has built strong and enduring connections with communities in
New Zealand and Australia. Central to these relationships is helping to raise funds for, and support,
organisations striving to save and change lives.
Our company and employees supported organisations including Ovarian Cancer Australia, BackTrack,
LandSAR, FightMND, Cerebral Palsy Alliance’s Steptember fundraiser and many more.
Following the recent weather events in New Zealand our teams ensured that supply channels
remained opened to continue to serve the local communities. In one instance our Onelink and
Healthcare Logistics operations combined with the New Zealand Defence Force and Health NZ to
deliver urgent medicines and medical consumables into Whangarei hospital in the Northland region
due to road closures and flooding following Cyclone Gabrielle. This is another example of the critical
importance our healthcare businesses are to the supply of medicines and related products across
New Zealand and Australia and underlines the commitment of our people in times of natural
disasters.
In December 2022, the External Reporting Board published compulsory Climate Related Disclosures
that EBOS will need to disclose commencing in FY24. EBOS is currently preparing for these
Government mandated disclosures to ensure we meet the requirements.
We look forward to providing a more detailed account of our ESG Program in our 2023 Sustainability
Report.
7
Interim Dividend
The Directors declared an interim dividend of NZ 53.0 cents per share, an increase of 12.8% on the
prior corresponding period. This implies a dividend payout ratio of 69.8%
8
.
The Dividend Reinvestment Plan (“DRP”) will be operational for the interim dividend. Shareholders
can elect to take shares in lieu of a cash dividend at a discount of 2.5% to the volume weighted
average share price (“VWAP”).
The record date for the dividend is 3 March 2023 and the dividend will be paid on 17 March 2023.
The dividend will be imputed to 25% for New Zealand tax resident shareholders and fully franked for
Australian tax resident shareholders.
Outlook
EBOS is pleased with the strong earnings growth in the first half of FY23 and we expect another full
year of profitable growth. EBOS‘ balance sheet is strong and well positioned to pursue growth
opportunities.
8
Dividend payout ratio is based on a NZD:AUD average exchange rate of 0.914.
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 EGM, Strategy, M&A and Investor Relations
Senescall Akers EBOS Group
+64 21 481 234 +61 3 9918 5555
martin.krauskopf@ebosgroup.com
Australia:
Patrick Rasmussen
PRX
+61 430 159 690
Financial Results Presentation webcast link:
https://edge.media-server.com/mmc/p/4y94szv5
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 Results
Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense
attributable to the LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible
assets ($13.5m pre tax, $9.4m post tax). Underlying earnings for the 31 December 2021 period
exclude transaction costs incurred on M&A ($7.8m pre tax, $7.4m post tax).
The PPA exercise has been undertaken in accordance with IFRS, including requiring the identification
and recognition of intangible assets acquired separate from goodwill. As a result, exclusive supply
contracts held by LifeHealthcare have been recognised ($341m) as a finite life intangible asset and
are required to be amortised over a period of 13 years, with an annual amortisation charge of
approximately $26m over that time. There is no cash impact to the Group from the $13.5m
amortisation charge recognised for H1 FY23. Please refer to Note 10 of the 31 December 2022
Interim Financial Statements for further details.
H1 FY23
H1 FY22
$m
EBITDA
EBIT
PBT
NPAT
EBITDA
EBIT
PBT
NPAT
Statutory result
289.2
226.0
192.6
132.2
199.9
161.3
147.5
101.9
LifeHealthcare PPA amortisation (non
-
cash)
-
13.5
13.5
9.4
-
-
-
-
Transaction costs incurred on M&A
-
-
-
-
7.8
7.8
7.8
7.4
Underlying result
289.2
239.5
206.1
141.6
207.7
169.1
155.3
109.3
---
INVESTOR
PRESENTATION
Interim Financial Results
Half year ended 31 December 2022
22 February 2023
REPLACE WITH
ALTERNATIVE (MORE
MODERN) WAREHOUSE
IMAGE IN THIS SQUARE
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, EBITDA, EBITA, EBIT,
NPAT, Underlying EBITDA, Underlying EBIT, Underlying NPAT, Underlying Earnings per Share, Free Cash Flow, Underlying Cash from
Operating Activities, Underlying Free Cash Flow, Cash Conversion Days, Net Debt, Net Debt : EBITDA 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 measuresdetermined
in accordance with GAAP. Although EBOS believes they provide useful 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 2022.
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.
Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense attributable to the
LifeHealthcareacquisition purchase price accounting (PPA) of finite life intangible assets. Underlying earnings for the 31 December
2021 period exclude transaction costs incurred on M&A. Refer to page 27 for the reconciliation of Statutory to Underlying earnings.
GROUP
FINANCIAL
RESULTS
3
H1 FY23 SUMMARY RESULTS
4
$mUnderlying
1
VarStatutoryVar
2
Revenue6,145.717.0%6,145.717.0%
EBITDA289.239.3%289.244.7%
EBIT239.541.6%226.040.1%
NPAT141.629.6%132.229.8%
EPS (cents)74.512.0%69.613.3%
DPS (NZ cents)53.0 12.8%
EBITDA margin4.71%76bp
ROCE (%)14.4%(3.8%)
Net debt : EBITDA (x)1.76x0.18x
2
Strong organic
earnings growth
Substantial
contribution from
FY22 acquisitions
Gearing reduced
and within target
range
Increased
dividends to
shareholders
Double-digit EPS
growth
EBOS has achieved another record half year result, driven by organic growth and contribution from
acquisitions
Notes:
1.Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense attributable to the LifeHealthcareacquisition
purchase price accounting (PPA) of finite life intangible assets ($13.5m pre tax, $9.4m post tax). Underlying earnings for the 31 December 2021
period exclude transaction costs incurred on M&A ($7.8m pre tax, $7.4m post tax). Refer to page 27 for the reconciliation of Statutory to
Underlying earnings.
2.Comparisons shown to prior corresponding period with exception of Net Debt : EBITDA, which is compared to June 2022.
ROCE in-line with
expectations after
LifeHealthcare
acquisition
KEY HIGHLIGHTS
5
Healthcare
EBITDA up 37.6%
1
•Healthcare’s strongperformance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”),
Institutional Healthcare and Contract Logistics businesses. Key highlights included:
oCommunity Pharmacy wholesale volumes grew strongly driven by customer and market share growth;
oTWC store network grew to over 540 stores and delivered total sales growth of 18.6% and like-for-like growth
of 15.8%;
oInstitutional Healthcare growth driven by medical technology and medical consumables distribution
acquisitions completed in FY22 and increased hospital medicines sales including specialty medicines; and
oContract Logistics growth due to new and existing principals.
•Continued investment in operational infrastructure across Community Pharmacy, Institutional Healthcare and
Contract Logistics.
•The integration of LifeHealthcareis well progressed and its financial performance was in-line with expectations,
providing significant earnings growth for the Group.
Animal Care
EBITDA up 31.5%
1
•Animal Care continues to achieve strong organic growth, supported by our newly commissioned pet food
manufacturing facility. Key highlights included:
oOur key pet brands, Black Hawk and Vitapet, continued to maintain share leadership in their respective
market segments; and
oOur new state of the art premium pet food manufacturing facility in Parkes, NSW is successfully operating,
enhancing our local supply chain capabilities and competitive advantage.
Group
NPAT up 29.6%
1
•Underlying operating cash flow of $161.1m (up 40.6%).
•ROCE of 14.4% and in line with expectations following the LifeHealthcare acquisition.
•Net Debt : EBITDA of 1.76x, a reduction from June 2022 (1.94x) and is within target range.
Notes:
1.Growth rates are calculated based on Underlying EBITDA and Underlying NPAT (as applicable).
Continued strong organic growth in Healthcare and Animal Care combined with substantial contribution from
acquisitions completed in FY22
KEY HIGHLIGHTS (CONT.)
6
EBOS has successfully managed a challenging macro environment
Supply side
constraints and
cost increases
•Despite operational challenges resulting from supply side constraints, including manufacturer out of stocks,
availability of staff and other key inputs, the Group has delivered another strong performance.
•Key cost items within the Group are cost of goods sold, labour, freight and rent.
•We have experienced increases in these key cost items to varying degrees across our businesses (other than fixed
regulated cost items) due to the effects of inflation and each business has implemented various strategies to
mitigate these increases and preserve margins.
•Group Underlying EBITDA margin increased in H1 FY23 by 76bpas a result of these mitigation strategies and
acquisitions of higher margin businesses.
•Interest rate increases and higher debt levels have impacted financing costs whilst being managed through effective
financial risk management.
BUSINESS AND SEGMENT PERFORMANCE
GOR bridge ($m)
Underlying EBITDA bridge ($m)
All of our Healthcare and Animal Care divisions contributed double-digit growth, driven by positive organic
growth and Institutional Healthcare benefitted from acquisitions completed in FY22
7
H1 FY23
growth
vs. pcp
H1 FY23
growth
vs. pcp
575.0
778.3
+47.5
+128.7
+15.7
+11.4
17.2%81.3%26.0%14.3%35.4%
H1 FY22
GOR
Community
Pharmacy
Inst.
Healthcare
Contract
Logistics
Animal
Care
H1 FY23
GOR
207.7
289.2
+69.7
+12.2
(0.4)
37.6%31.5%-2.3%39.3%
H1 FY22
EBITDA
HealthcareAnimal CareCorporateH1 FY23
EBITDA
GROUP PERFORMANCE
•Revenue of $6,145.7m, an increase of $894.9m or 17.0%:
oHealthcare up 17.6%;
oAnimal Care up 6.3%.
•Underlying EBITDA of $289.2m, an increase of $81.5m or 39.3%:
oHealthcare up 37.6%;
oAnimal Care up 31.5%.
•Underlying EBITDA margin improved to 4.71% (from 3.95%).
•Net Finance Costs increased to $33.4m due to both higher net
debt, attributable to the LifeHealthcare acquisition, and a higher
interest rate environment.
•Underlying NPAT and EPS increased by 29.6% and 12.0%,
respectively. EPS growth rate is lower than NPAT growth rate
due to the impact of capital raisings in FY22.
•Underlying earnings for the 31 December 2022 period exclude
the amortisation (non-cash) expense attributable to the
LifeHealthcareacquisition purchase price accounting (PPA) of
finite life intangible assets ($13.5m pre tax, $9.4m post tax).
Underlying earnings for the 31 December 2021 period exclude
transaction costs incurred on M&A ($7.8m pre tax, $7.4m post
tax). Refer to page 27 for further details.
8
$mH1 FY23H1 FY22VarVar%
Underlying Results
Revenue
6,145.75,250.9894.917.0%
Gross Operating Revenue778.3575.0203.335.4%
EBITDA289.2207.781.539.3%
Depreciation & Amortisation49.738.6(11.1)(28.8%)
EBIT239.5169.170.441.6%
Net Finance Costs33.413.8(19.6)(142.0%)
Profit Before Tax206.1155.350.832.7%
Net Profit After Tax141.6109.332.429.6%
Earnings per share - cps74.5c66.6c8.0c12.0%
EBITDA margin4.71%3.95%76bp
Underlying Net Debt
1
837.5402.3
Underlying Net Debt : EBITDA
1
1.76x1.28x-0.48x
Statutory Results
Revenue
6,145.75,250.9894.917.0%
EBITDA289.2199.989.344.7%
EBIT226.0161.364.740.1%
Profit Before Tax192.6147.545.130.6%
Net Profit After Tax132.2101.930.329.8%
Earnings per share - cps69.6c61.4c8.2c13.3%
Notes:
1.Underlying Net Debt and Underlying Net Debt : EBITDA ratio excludes the impacts of IFRS16 Leases. For H1 FY22, these amounts exclude $628.3m
of net cash proceeds raised via the December 2021 share placement in connection with the acquisition of LifeHealthcare. Including the proceeds of
the share placement, EBOS had net cash of $226m as at 31 December 2021.
41
47
59
63
69
72
78
89
96
53
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
LONG TERM TRACK RECORD
9
Return on capital employed (%)
Underlying EBITDA($m)
Summary
Strong earnings growth.
Stable dividend growth and payout ratio.
Disciplined focus on working capital
management and cash flow generation.
ROCE in-line with expectations following
LifeHealthcareacquisition.
Gearing within target range.
DPS (NZ$ cents per share)
Net Debt : EBITDA
Underlying EPS (cents per share)
EBOS has delivered consistent financial performance over the long term
13.5% CAGR
1
11.2% CAGR
1
15% targetWithin target range
Notes:
1. CAGR calculation is inclusive of FY14-FY22.
159
182
208
228
250
262
336
367
437
289
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
57
66
77
86
90
94
101
115
129
75
FY14FY15FY16FY17FY18FY19FY20FY21FY22
H1
FY23
1.93x
1.59x
1.18x
1.80x
1.74x
1.41x
1.11x
0.85x
1.94x
1.76x
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
10.8% CAGR
1
12.9%
14.6%
16.7%
17.1%
16.3%
15.9%
17.1%
18.0%
18.6%
14.4%
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
SUSTAINABILITY SNAPSHOT
10
1
11
HEALTHCARE
RESULTS
HEALTHCARE SEGMENT
12
•The performance of our Healthcare segment reflects strong
organic growth supplemented by the completion of five
acquisitions in the prior year.
•Strong performance was driven by our Community
Pharmacy, TWC, Institutional Healthcare and Contract
Logistics businesses.
•Despite ongoing cost pressures across labour and freight,
EBITDA margins have been maintained for the base
business, with margin growth driven by acquisitions.
Underlying EBITDA ($m and %)
The Healthcare segment generated positive organic growth in each division and benefitted from the
contribution of acquisitions
$mH1 FY23H1 FY22Var$Var%
Revenue5,854.6 4,976.9 877.7 17.6%
Underlying EBITDA255.0 185.2 69.7 37.6%
Underlying EBITDA%4.35%3.72%63bp
Australia
Revenue4,755.8 3,937.1 818.8 20.8%
Underlying EBITDA203.4 150.2 53.1 35.4%
Underlying EBITDA%4.28%3.82%46bp
New Zealand & Southeast Asia
Revenue1,098.7 1,039.8 58.9 5.7%
Underlying EBITDA51.6 35.0 16.6 47.3%
Underlying EBITDA%4.70%3.37%133bp
112.7
147.1
161.3
185.2
255.0
3.41%
3.53%
3.66%
3.72%
4.35%
H1 FY19H1 FY20H1 FY21H1 FY22H1 FY23
Underlying EBITDAUnderlying EBITDA%
•Revenue increased by $578.6m (18.4%) and GOR increased by
$47.5m (17.2%), benefitting from:
oCustomer and market share growth;
oStrong performance from our community pharmacy retail
brands, including TWC;
oAbove market growth in ethical sales to our major
wholesale customers;
oSales growth of high value speciality medicines; and
oGrowth in OTC sales across several key categories,
including sinus and allergy, digestive health and pain relief.
•In addition, the result benefited from COVID-19 related
product sales including anti-viral medications and cold and flu
OTC products.
•GOR margin (%) reduced to 8.68% reflecting the impacts of
higher ethical sales mix, increased volumes of high value
specialty medicines and the fixed nature of the CSO income
pool.
COMMUNITY PHARMACY
13
Revenue and GOR ($m)
$mH1 FY23H1 FY22Var$Var%
Revenue3,731.4 3,152.8 578.6 18.4%
GOR324.0 276.5 47.5 17.2%
GOR%8.68%8.77%
1,952
2,620
2,736
3,153
3,731
214
241
250
277
324
H1 FY19H1 FY20H1 FY21H1 FY22H1 FY23
RevenueGOR
TerryWhiteChemmart
14
•TerryWhiteChemmartadded 26 net new partners to its national network in H1 FY23,
continuing its impressive growth in pharmacy numbers and growing the network to over
540 stores.
•Strong trading performance with headline growth in network sales up 18.6% and like-for-
like sales up 15.8%, underpinned by script growth of 7.4% and 4.6% on a like for like basis
1
.
•The TWC catalogue and promotional program continued to deliver exceptional value to
customers with 17% promotional sales growth in pharmacies.
•TWC continued to grow investment in media, delivering strong brand improvements and
maintaining our position as the second largest advertiser in the Australian community
pharmacy sector
2
.
•TWC consumer brand sales grew 15%, supported by the launch of 15 new products and
providing an excellent value option to customers.
•The myTWCApp was launched, providing customers with a convenient and safe way to
order e-prescriptions online, manage medications, book health services and earn rewards
on over-the-counter products.
•TWC commenced new partnerships for generic medicines, improving access to low cost
medicines across the network.
that’s realchemistry
Network sales growth in H1 FY23
Total sales up 18.6%
Like-for-like up 15.8%
Dispensary sales up 19.7%
Like-for-like up 16.8%
Script volumes up 7.4%
Like-for-like up 4.6%
Notes: 1. Excludes remuneration received for vaccinations 2. Source: Landsberry & James AQX, December 2022.
INSTITUTIONAL HEALTHCARE
•Institutional Healthcare revenue increased by $285.6m (19.4%)
and GOR increased by $128.7m (81.3%) largely due to:
oContribution from medical technology (previously know as
medical devices) and medical consumables businesses
acquired in FY22; and
oSymbion Hospitals growth.
•SymbionHospitals’ revenue grew by 9.2% driven by sales of
high value specialty medicines, new customer wins and market
share improvements.
•Further progress has been made during the period on the
integration of LifeHealthcareinto the Group’s enlarged medical
technology division. LifeHealthcare’sfinancial performance was
in-line with expectations, providing significant earnings growth
for the Group.
•Management now anticipates that implementation of the
medical technology division integration activities to be
undertaken in the second half of the financial year will result in
one-off costs of approximately $12.5 million. The integration
activities and expected costs include rationalisation of operating
sites and inventory lines, IT systems integration and stamp duty.
The financial benefits from these activities will be realised in
FY24 and beyond.
•GOR margin increased to 16.3% primarily due to higher
contributions from our expanded medical technology and
medical consumables businesses.
Revenue and GOR ($m)
15
1,148
1,252
1,361
1,474
1,760
102
109
126
158
287
H1 FY19H1 FY20H1 FY21H1 FY22H1 FY23
RevenueGOR
$mH1 FY23H1 FY22Var$Var%
Revenue1,760.0 1,474.3 285.6 19.4%
GOR287.1 158.3 128.7 81.3%
GOR%16.3%10.7%
CONTRACT LOGISTICS
•Contract Logistics GOR increased by $15.7m (26.0%)
attributable to:
oGrowth in Australia from new and existing principals; and
oGrowth in New Zealand from continued demand for
storage and servicing of protective equipment.
•Well advanced with construction of a new distribution centre in
Auckland. Construction of a new Sydney distribution centreis
progressing well with an expected opening in late 2023.
Revenue and GOR ($m)
Note: GOR is the primary financial performance metric for Contract
Logistics as sales are predominately on a consignment basis. Revenue
and GOR % are less relevant metrics for this division.
16
$mH1 FY23H1 FY22Var$Var%
Revenue459.3 450.0 9.2 2.1%
GOR76.2 60.5 15.7 26.0%
242
346
397
450
459
32
39
44
61
76
H1 FY19H1 FY20H1 FY21H1 FY22H1 FY23
RevenueGOR
17
ANIMAL
CARE
RESULTS
ANIMAL CARE SEGMENT
•Animal Care revenue increased by $17.2m (6.3%) and EBITDA
increased by $12.2m (31.5%) due to strong performances from
our leading brands and businesses (Black Hawk, Vitapet and
Lyppard) and the new pet food manufacturing facility delivering
improved product supply and margins.
•Black Hawk and Vitapet brands continued to maintain share
leadership in their respective market segments.
•Our new pet food manufacturing facility is successfully operating
with commercial production rates meeting demand. The facility is
enhancing our local supply chain capabilities and providing a
competitive advantage for the Black Hawk range.
•Animates, our New Zealand pet retail joint venture, continued to
perform strongly and contributed to the Animal Care segment’s
earnings growth.
•EBITDA margin improved reflecting relative performance of
higher margin businesses, benefits of the pet food manufacturing
facility and successful mitigation of cost inflation.
Underlying EBITDA ($m and %)
The Animal Care segment has continued to capitalise on strong pet market conditions and is benefiting from
previous investments in our pet food manufacturing facility
18
$mH1 FY23H1 FY22Var$Var%
Revenue291.2 274.0 17.2 6.3%
- Retail Revenue150.3 135.3 15.0 11.1%
- Wholesale Revenue140.9 138.7 2.2 1.6%
Underlying EBITDA51.0 38.8 12.2 31.5%
Underlying EBITDA%17.5%14.1%340bp
24.3
28.5
33.9
38.8
51.0
12.65%
13.5%
13.9%
14.1%
17.5%
H1 FY19H1 FY20H1 FY21H1 FY22H1 FY23
Underlying EBITDAUnderlying EBITDA%
Categories
H1 FY23 Sales
Growth
1
Salesgrowth drivers
Black Hawk15.2%
•Strong consumer support for our products.
•Continued investment in marketing to drive increased brand awareness and
retail support.
•New pet food manufacturing facility delivering improved product supply.
Vitapet6.3%
•Maintaining market leading positions in Australia and New Zealand.
•Strong new product pipeline to drive future growth.
•Marketing support to grow brand awareness.
Lyppard1.6%
•GOR growth of 14.1% reflecting continued profitable growth. Lower revenue
growth due to loss of lower margin business.
CONTINUED PRODUCT AND BRAND GROWTH
Our key brands demonstrated solid growth
19
Notes:
1.Compared to the prior corresponding period at constant exchange rate.
20
FINANCIAL
INFORMATION
AND OUTLOOK
CASH FLOW
21
•Underlying Cash from Operating Activities of $161.1m is above last year by $46.5m (40.6%) driven by strong earnings growth, partially
offset by higher finance costs and tax payments.
Underlying Cash from Operating
Activities ($m)
1
Notes:
1.Underlying Cash from Operating Activities excludes one-off payments for M&A costs.
49.1
75.4
100.6
114.6
161.1
80.6
156.4
201.6
176.4
129.7
231.8
302.2
291.0
161.1
FY19FY20FY21FY22FY23
H1H2
$m
H1 FY23H1 FY22
Var$Var%
Underlying EBITDA289.2 207.7 81.5 39.3%
Interest paid(33.4)(13.8)(19.6)
Tax paid(78.5)(66.8)(11.7)
Net working capital and other
movements
(16.2)(12.5)(3.7)
Underlying Cash from Operating
Activities
161.1 114.6 46.5 40.6%
Capital expenditure(35.4)(43.3)7.9
Underlying Free Cash Flow125.7 71.3 54.4 76.4%
One-off items
1
-(7.8)7.8
Reported Free Cash Flow125.7 63.5 62.2 98.0%
WORKING CAPITAL AND ROCE
22
•Working capital management discipline is a key focus.
•Net Working Capital has increased, from the prior corresponding
period, due to the business acquisitions during FY22, primarily
attributable to LifeHealthcare.
•The increase in Cash Conversion Days reflects stock holding
requirements for customers of the medical technology
distribution sector.
Working Capital
•Return on Capital Employed (ROCE) of 14.4% at December
2022 is below December 2021 by 3.8%, due to the impact of
the LifeHealthcare acquisition and is in line with expectations.
•The Group maintains its 15% ROCE target and aims to exceed
this level again in the medium term.
Return on Capital Employed (ROCE)
18.0%
18.6%
18.2%
14.4%
FY21FY22H1 FY22H1 FY23
$mH1 FY23FY22
1
H1 FY22
Net Working Capital
Trade receivables1,394.7 1,278.1 1,216.3
Inventory1,193.9 1,107.7 874.4
Trade payables/other(2,165.7)(1,997.8)(1,825.6)
Total423.0 388.1 265.1
Cash conversion days17 15 14
Notes:
1.FY22 Net Working Capital has been updated to include fair value adjustments resulting from the LifeHealthcareacquisition purchase price
accounting (“PPA”).
NET DEBT AND MATURITY PROFILE
•Net Debt of $837.5m atDecember 2022, with Net Debt : EBITDA ratio of 1.76x.
•Reduction in leverage ratio reflects strong cash flow and earnings growth.
•Current gearing is within target range and the Group is well positioned to support further growth opportunities, with approximately
$400 million of debt headroom.
•During the period, a $250m facility (maturing March 2023) was refinanced to a $400m, 4 yearfacility, maturing in November 2026.
•As at31 December 2022, EBOS’ weighted average debt maturity is 2.7 years.
Net Debt and Net Debt : EBITDA ratio
1
Cash and Debt Maturity Profile
23
309
271
402
860
838
1.00x
0.85x
1.28x
1.94x
1.76x
Dec-20Jun-21Dec-21Jun-22Dec-22
Underlying Net DebtUnderlying Net Debt : EBITDA Ratio
223
-
134
581
345
-
92
382
400
223
227
963
345
400
Cash on
Hand
FY23FY24FY25FY26FY27
Drawn AmountCommitted and available facilities
Notes: 1. Net debt excludes a put option liability of $137 million, representing the estimated consideration to acquire the remaining 49% equity
ownership of the Transmedicbusiness not currently owned by the Group, if the option is exercised.
EARNINGS AND DIVIDENDS PER SHARE
24
•Underlying EPS of 74.5 cents representing growth of 12.0%.
•Interim dividend of NZ 53.0 cents per share declared (imputed to 25%
1
and franked to 100% for New Zealand and Australian tax
resident shareholders, respectively), representing growth of 12.8%.
•Dividend payout ratio of 69.8%
2
.
•EBOS reiterates its dividend policy of declaring dividends representing between 60% to 80% of NPAT.
•The Group’s Dividend Reinvestment Plan (DRP) will be operational for the upcoming dividend. Shareholders can elect to take shares in
lieu of a cash dividend at a discount of 2.5% to the volume weighted average share price (VWAP).
Dividends per Share (NZ cents)Underlying Earnings per Share (cents)
Notes:
1.The New Zealand company tax rate is 28%. Therefore, a dividend that is partially imputed with 25% of the maximum allowable imputation
credits implies an 8.86% imputation percentage in relation to the gross taxable amount of the dividend.
2.Dividend payout ratio is based on a NZD:AUD average exchange rate of 0.914.
47.8
51.3
57.8
66.6
74.5
46.4
49.5
57.2
62.4
94.2
100.8
114.9
129.0
FY19FY20FY21FY22FY23
H1H2
34.5
37.5
42.5
47.0
53.0
37.0
40.0
46.0
49.0
71.5
77.5
88.5
96.0
FY19FY20FY21FY22FY23
H1H2
OUTLOOK
25
•EBOS is pleased with the strong earnings growth in the first half of FY23 and we expect another full year of profitable growth.
•EBOS‘ balance sheet is strong and well positioned to pursue growth opportunities.
26
SUPPORTING
INFORMATION
RECONCILIATION OF STATUTORY TO UNDERLYING
RESULTS
27
•Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense attributable to the
LifeHealthcareacquisition purchase price accounting (PPA) of finite life intangible assets ($13.5m pre tax, $9.4m post tax).
Underlying earnings for the 31 December 2021 period exclude transaction costs incurred on M&A ($7.8m pre tax, $7.4m post tax).
•The PPA exercise has been undertaken in accordance with IFRS, including requiring the identification and recognition of intangible
assets acquired separate from goodwill. As a result, exclusive supply contracts held by LifeHealthcarehave been recognised
($341m) as a finite life intangible asset and are required to be amortised over a period of 13 years, with an annual amortisation
charge of approximately $26m over that time. There is no cash impact to the Group from the $13.5m amortisation charge
recognised for H1 FY23. Please refer to Note 10 of the 31 December 2022 Interim Financial Statements for further details.
H1 FY23H1 FY22
$mEBITDAEBITPBTNPATEBITDAEBITPBTNPAT
Statutory result289.2 226.0 192.6 132.2 199.9 161.3 147.5 101.9
LifeHealthcare PPA amortisation (non-cash) -13.5 13.5 9.4 ----
Transaction costs incurred on M&A----7.8 7.8 7.8 7.4
Underlying result289.2239.5206.1141.6207.7169.1155.3109.3
SEGMENT EBITDA AND EBIT RECONCILIATION
28
Note: Underlying earnings in H1 FY23 excludes the amortisation (non-cash) expense attributable to the LifeHealthcareacquisition purchase price
accounting (“PPA”) of finite life intangibles. Underlying earnings in H1 FY22 excludes transactions costs incurred on M&A. Referto page 27 for the
reconciliation of Statutory to Underlying earnings.
EBITDAEBIT
$mH1 FY23H1 FY22Var$Var%H1 FY23H1 FY22Var$Var%
Healthcare
Statutory255.0177.577.5 43.7%197.7142.954.8 38.3%
addLifeHealthcare PPA amortisation (non-cash) ---13.5 -13.5
addOne-off items-7.8(7.8)-7.8(7.8)
Underlying255.0185.269.7 37.6%211.2150.760.5 40.1%
Animal Care
Statutory51.038.812.2 31.5%45.635.310.3 29.1%
Corporate
Statutory(16.7)(16.4)(0.4)(2.3%)(17.3)(16.9)(0.4)(2.2%)
EBOS Group
Statutory289.2199.989.3 44.7%226.0161.364.7 40.1%
addLifeHealthcare PPA amortisation (non-cash) ---13.5 -13.5
addOne-off items-7.8(7.8)-7.8(7.8)
Underlying289.2207.781.5 39.3%239.5169.170.4 41.6%
TermDefinition
RevenueRevenue from the sale of goods and the rendering of services.
Gross OperatingRevenue (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, amortisationadjusted forone-off items.
EBITEarnings before interest and tax.
Underlying EBITEarnings before interestand tax and adjusted for one-off items and LifeHealthcarePPA amortisation (non-cash).
PBTProfit before tax.
Underlying PBTProfit before tax adjusted for one-off items and LifeHealthcarePPA amortisation (non-cash).
NPATNet Profit After Tax attributable to the owners of the company.
Underlying NPAT
Net Profit After Tax attributable to the owners of the companyadjusted for one-offitems and LifeHealthcarePPA amortisation (non-cash
and after tax).
One-off itemsTransaction costs incurred on M&A activities.
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’.
Underlying EPSUnderlying NPAT divided by the weighted average number of shares onissue during the period.
Free Cash FlowCash from operating activitiesless capital expenditure net of proceeds from disposals.
Underlying Cash from Operating
Activities
Cash from operating activities excluding one-off payments for M&A costs.
Underlying Free Cash FlowFree cash flow excluding one-off payments for M&A costs.
Net Debt
Consists of total borrowings and deferred consideration where payable based on current year earn-out requirements, less cash andcash
equivalents and excludes IFRS16 lease liabilities.
Net Debt : EBITDA
Ratio of net debt at period end to the last 12 months Underlying EBITDA, adjusting for pre acquisition earnings of acquisitions for the
period. Calculation is applied as per the Group’s banking covenants.
Cash Conversion DaysBased upon average monthly closing NWC balances for the financial year to normalise for acquired LifeHealthcare NWC impacts.
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 adjustmentforstrategicinvestments).
IFRSInternational FinancialReporting Standards.
PPAPurchase Price Accounting
GLOSSARY OF TERMS AND MEASURES
29
Except where noted, common terms and measures used in this document are based upon the following definitions:
www.ebosgroup.com
---
EBOS GROUP LIMITED
INTERIM REPORT
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2022
EBOS GROUP LIMITED
INTERIM REPORT 2023
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 19
1
EBOS GROUP LIMITED
INTERIM REPORT 2023
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
Revenue 6,145,722 5,250,860 10,734,119
Profit before depreciation, amortisation, net finance costs and tax
expense (EBITDA)
289,180
199,881
405,810
Profit before net finance costs and tax expense (EBIT) 226,018 161,313 323,938
Profit before tax expense 192,627 147,513 295,253
Profit for the period 137,591 101,992 202,038
Profit for the period attributable to owners of the Company 132,198 101,866 202,605
Equity attributable to owners of the Company 2,374,403 2,078,208 2,264,812
Earnings per share 69.6c 61.4c 114.5c
Interim dividend per share (New Zealand dollars) 53.0c 47.0c 47.0c
SHAREHOLDER CALENDAR
Interim dividend record date 3 March 2023
Interim dividend payable 17 March 2023
Release of 2023 full year results 23 August 2023
Annual Meeting 24 October 2023
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 2022, 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 18.
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements of the Group do not
present fairly, in all material respects, the financial position of the Group as at 31 December 2022 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 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 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 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
21 February 2023
3
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2022
Notes
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
Revenue
2(a) 6,145,722 5,250,860 10,734,119
Income from associates
5,428 4,088 9,749
Profit before depreciation, amortisation, net finance
costs and tax expense (EBITDA)
289,180
199,881
405,810
Depreciation
2(b) (43,437) (32,199) (67,534)
Amortisation of finite life intangibles
2(b) (19,725) (6,369) (14,338)
Profit before net finance costs and tax expense (EBIT)
226,018 161,313 323,938
Finance income
4,257 758 2,762
Finance costs – borrowings
(32,373) (10,416) (22,943)
Finance costs – leases
(5,275) (4,142) (8,504)
Profit before tax expense
192,627 147,513 295,253
Income tax expense
(55,036) (45,521) (93,215)
Profit for the period
137,591 101,992 202,038
Profit for the period attributable to:
Owners of the Company
132,198 101,866 202,605
Non-controlling interests
5,393 126 (567)
137,591 101,992 202,038
Earnings per share
Basic (cents per share)
69.6 61.4 114.5
Diluted (cents per share)
69.6 61.4 114.5
4
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2022
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
Profit for the period
137,591 101,992 202,038
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Movement in cash flow hedge reserve
1,599 4,340 10,341
Related income tax
32 (1,293) (3,212)
Movement in foreign currency translation reserve
17,767 2,733 (15,937)
19,398 5,780 (8,808)
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments fair valued through other
comprehensive income
1,258 2,513 (3,441)
Total comprehensive income net of tax
158,247 110,285 189,789
Total comprehensive income for the period is attributable to:
Owners of the Company
152,744 110,159 190,356
Non-controlling interests
5,503 126 (567)
158,247 110,285 189,789
5
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2022
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 2021 (unaudited):
Opening balance 993,616 10,350 (21,163) 433,453 (2,561) (2,671) (5,321) 1,405,703
Profit for the period - - - 101,866 - - 126 101,992
Other comprehensive income for the period, net of tax - - 2,733 -
2,513
3,047 - 8,293
Payment of dividends 4 - - - (72,228) - - - (72,228)
Share-based payments - (2,210) - -
-
- - (2,210)
Share placement 3 638,155 - - - - - - 638,155
Share placement costs 3 (9,828) - - - - - - (9,828)
Employee LTI shares exercised 3 2,343 - - -
-
- - 2,343
Employee share plan shares issued 3 841 - - - - - - 841
Employee share issue costs 3 (48) - - - - - - (48)
Balance at 31 December 2021 1,625,079 8,140 (18,430) 463,091 (48) 376 (5,195) 2,073,013
6
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Continued)
For the six months ended 31 December 2022
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 2022 (audited):
Opening balance 993,616 10,350 (21,163) 433,453 (2,561) (2,671) (5,321) 1,405,703
Profit for the period - - - 202,605 - - (567) 202,038
Other comprehensive income for the period, net of tax - - (15,937) -
(3,441)
7,129 - (12,249)
Payment of dividends 4 - - - (154,392) - - - (154,392)
Arising on acquisition of subsidiaries - - - -
-
- 29,632 29,632
Option over non-controlling interests - - - -
-
- (137,000) (137,000)
Share-based payments - 878 - -
-
- - 878
Share placement 3 638,155 - - -
-
- - 638,155
Retail offer 159,981 - - - - - - 159,981
Script consideration 22,638 - - - - - - 22,638
Share placement and retail offer issue costs 3 (10,769) - - - - - - (10,769)
Tax on deductible issue costs 3,097 - - -
-
- - 3,097
Employee LTI shares exercised 3 2,343 - - - - - - 2,343
Employee share plan shares issued 3 1,617 - - - - - - 1,617
Employee share issue costs 3 (116) - - - - - - (116)
Balance at 30 June 2022 1,810,562 11,228 (37,100) 481,666 (6,002) 4,458 (113,256) 2,151,556
7
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Continued)
For the six months ended 31 December 2022
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 2022 (unaudited):
Opening balance 1,810,562 11,228 (37,100) 481,666 (6,002) 4,458 (113,256) 2,151,556
Profit for the period - - - 132,198 - - 5,393 137,591
Other comprehensive income for the period, net of tax - - 17,657 -
1,258
1,631 110 20,656
Payment of dividends 4 - - - (83,001) - - - (83,001)
Share-based payments - 55 - -
-
- - 55
Dividends reinvested 3 39,214 - - - - - - 39,214
Share placement costs 3 (285) - - - - - - (285)
Tax on deductible issue costs 3 85 - - -
-
- - 85
Employee share plan shares issued 3 838 - - - - - - 838
Employee share issue costs 3 (59) - - - - - - (59)
Balance at 31 December 2022 1,850,355 11,283 (19,443) 530,863 (4,744) 6,089 (107,753) 2,266,650
8
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2022
Notes
31 Dec 22
A$’000
(unaudited)
31 Dec 21
A$’000
(unaudited)
30 Jun 22
A$’000
(audited)
Current assets
Cash and cash equivalents 222,922 493,974 517,316
Trade and other receivables 1,510,497 1,276,408 1,374,731
Prepayments 46,668 23,983 32,514
Inventories
1,193,949
874,395
1,107,736
Current tax refundable 4,757 3,034 127
Other financial assets – derivatives 8 20,044 840 19,722
Total current assets 2,998,837 2,672,634 3,052,146
Non-current assets
Property, plant and equipment 309,443 177,283 302,389
Capital work in progress 34,378 89,742 24,992
Prepayments 1,659 564 1,360
Deferred tax assets
214,335
147,703
186,204
Goodwill 10 1,955,588 1,129,099 1,925,968
Indefinite life intangibles 171,961 119,246 170,405
Finite life intangibles 355,662 39,114 373,319
Right of use assets 291,375 237,367 249,596
Investment in associates
46,185
46,294
45,912
Other financial assets 16,443 10,638 13,485
Total non-current assets 3,397,029 1,997,050 3,293,630
Total assets
6,395,866
4,669,684
6,345,776
Current liabilities
Trade and other payables 2,239,184 1,830,068 2,022,084
Bank loans 7 30,942 - 331,517
Lease liabilities 48,548 40,451 42,627
Current tax payable
25,638 31,686 40,395
Employee benefits 68,270 56,883 75,880
Other financial liabilities – derivatives 8, 10 137,611 3,087 -
Total current liabilities 2,550,193 1,962,175 2,512,503
Non-current liabilities
Bank loans 7 1,029,496 267,977 1,046,259
Lease liabilities 263,562 216,266 227,203
Trade and other payables 12,687 14,100 21,283
Deferred tax liabilities
263,629 126,935 240,943
Employee benefits 9,649 9,218 9,029
Other financial liabilities – derivatives 8, 10 - - 137,000
Total non-current liabilities 1,579,023 634,496 1,681,717
Total liabilities 4,129,216 2,596,671 4,194,220
Net assets 2,266,650 2,073,013 2,151,556
Equity
Share capital
3
1,850,355 1,625,079 1,810,562
Share based payments reserve 11,283 8,140 11,228
Foreign currency translation reserve (19,443) (18,430) (37,100)
Retained earnings 530,863 463,091 481,666
Equity instruments fair valued through other comprehensive income
(4,744) (48) (6,002)
Cash flow hedge reserve 6,089 376 4,458
Equity attributable to owners of the company 2,374,403 2,078,208 2,264,812
Non-controlling interests (107,753) (5,195) (113,256)
Total equity
2,266,650 2,073,013 2,151,556
9
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2022
Notes
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
Cash flows from operating activities
Receipts from sale of goods and services
6,021,329 5,148,372 10,599,165
Interest received
4,257 758 2,762
Dividends received from associates
8,824 6,091 10,607
Payments for purchase of goods and services
(5,757,173) (4,967,076) (10,217,016)
Taxes paid
(78,524) (66,806) (115,335)
Interest paid
(37,648) (14,558) (31,447)
Net cash inflow from operating activities
5 161,065 106,781 248,736
Cash flows from investing activities
Sale of property, plant and equipment
249 916 453
Purchase of property, plant and equipment
(24,787) (10,954) (27,567)
Payments for capital work in progress
(9,933) (31,666) (54,205)
Payments for intangible assets
(891) (1,588) (7,862)
Acquisition of subsidiaries
10 (36,928) (106,739) (1,299,120)
Investment in associates
(2,182) - -
Investment in other financial assets
(574) (253) (7,896)
Net cash (outflow) from investing activities
(75,046) (150,284) (1,396,197)
Cash flows from financing activities
Proceeds from issue of shares
3 39,793 631,463 791,211
Proceeds from borrowings
6,205 44,371 1,160,888
Repayment of borrowings
(325,575) (216,640) (255,427)
Repayment of lease liabilities
(23,951) (19,498) (40,941)
Dividends paid to equity holders of parent
(81,565) (71,964) (154,110)
Net cash (outflow)/inflow from financing activities
(385,093) 367,732 1,501,621
Net (decrease)/increase in cash held
(299,074) 324,229 354,160
Effect of exchange rate fluctuations on cash held
4,680 792 (5,797)
Net cash and cash equivalents at beginning of period
517,316 168,953 168,953
Net cash and cash equivalents at end of period
222,922 493,974 517,316
10
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2022
1. FINANCIAL STATEMENTS
These unaudited condensed consolidated interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZGAAP”) as appropriate for condensed interim financial statements. 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 2022.
The Condensed Consolidated Balance Sheet as at 30 June 2022 presented within this report has been updated to reflect the fair
value adjustments attributable to the acquisition of LifeHealthcare Group. There is no impact to the 30 June 2022 Statement of
Comprehensive Income. Please refer to Note 10 of this report for further details.
The accounting policies and methods of computation 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 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
(a)
Revenue
Community Pharmacy
3,731,388 3,152,813 6,441,693
Institutional Healthcare
1,759,978 1,474,345 3,069,546
Contract Logistics Services
71,902 58,019 123,240
Contract Logistics Sales
387,360
391,994
762,222
Interdivisional eliminations
(96,067) (100,290) (203,923)
Healthcare
5,854,561 4,976,881 10,192,778
Animal Care
291,161 273,979 541,341
6,145,722 5,250,860 10,734,119
11
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Continued)
For the six months ended 31 December 2022
2. PROFIT FROM OPERATIONS (Continued)
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
(b)
Profit before net finance costs and tax expense
Profit before net finance costs and tax expense has been arrived
at after charging the following expenses by nature:
One-off items
(1)
-
(7,771)
(31,038)
Cost of sales
(5,365,508) (4,670,448) (9,488,854)
Write-down of inventory
(1,943) (5,439) (11,438)
Impairment loss on trade and other receivables
(600) (28) (1,683)
Depreciation of property, plant and equipment
(17,297)
(10,697)
(22,557)
Depreciation on right of use assets
(26,140) (21,502) (44,977)
Amortisation of finite life intangibles attributable to fair value
adjustments for the LifeHealthcare Group acquisition
(13,469)
-
(1,451)
Amortisation of other finite life intangibles
(6,256) (6,369) (12,887)
Short-term and low value asset leases
(4,461) (3,966) (7,423)
Donations
(24) (27) (514)
Employee benefit expense
(244,673) (187,633) (392,479)
Defined contribution plan expense
(14,438)
(10,283)
(21,335)
Other expenses
(230,323) (169,472) (383,294)
(5,925,132) (5,093,635) (10,419,930)
(1) One-off items comprise transaction costs incurred in relation to acquisitions undertaken during the period.
3. SHARE CAPITAL
Six months
31 Dec 22
Six months
31 Dec 21
Year ended
30 Jun 22
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(audited)
Fully paid ordinary shares
Balance at beginning of
period
189,383 1,810,562 164,164 993,616 164,164 993,616
Dividend reinvested
1,185 39,214 - - - -
Performance rights
46
-
-
-
-
-
Share placement – December
2021
- - 19,526 638,155 19,526 638,155
Retail offer – January 2022
-
-
-
-
4,955
159,981
Script consideration
- - - - 691 22,638
Share placement and retail
offer issue costs
-
(285)
-
(9,828)
-
(10,769)
Tax on deductible issue costs
- 85 - 3,097
Issue of shares to staff under
employee share plan
24
838
26
841
47
1,617
Employee share issue costs
- (59) - (48) - (116)
Shares vested under the long
term executive incentive
scheme
- - - 2,343 - 2,343
190,638
1,850,355
183,716
1,625,079
189,383
1,810,562
12
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Continued)
For the six months ended 31 December 2022
4. DIVIDENDS
AUD
Six months
31 Dec 22
AUD
Six months
31 Dec 21
AUD
Year ended
30 Jun 22
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(audited)
Recognised amounts
Fully paid ordinary shares
Final – prior year
43.9 83,001 44.1 72,228 44.1 72,228
Interim – current year
- - - - 43.7 82,164
43.9 83,001 44.1 72,228 87.8 154,392
Unrecognised amounts
Final dividend
- - - - 44.3 83,806
Interim dividend
48.4 94,631 44.3 81,347 - -
48.4 94,631 44.3 81,347 44.3 83,806
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 53.0 New Zealand cents per share on 21 February 2023. The record date for the dividend is 3 March 2023 and the
dividend will be paid on 17 March 2023.
The following table shows dividends approved in New Zealand dollars:
Six months
Six months
Year ended
31 Dec 22
NZD
31 Dec 21
NZD
30 Jun 22
NZD
Cents per
share
Cents per
share
Cents per
share
Recognised amounts
Fully paid ordinary shares
Final – prior year
49.0 46.0 46.0
Interim – current year
- - 47.0
49.0 46.0 93.0
Unrecognised amounts
Final dividend
- - 49.0
Interim dividend
53.0 47.0 -
53.0 47.0 49.0
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 2022
5. NOTES TO THE CASH FLOW STATEMENT
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
Reconciliation of profit for the period with cash flows from operating
activities
Profit for the period
137,591 101,992 202,038
Add/(less) non-cash items:
Depreciation of property, plant and equipment
17,297 10,697 22,557
Depreciation on right of use assets
26,140 21,502 44,977
Amortisation of finite life intangibles attributable to fair value
adjustments for the LifeHealthcare Group acquisition
13,469 - 1,451
Amortisation of other finite life intangibles
6,256 6,369 12,887
(Gain)/loss on sale of property, plant and equipment
(249) 7 434
Share of profit from associates
(5,428) (4,088) (9,749)
Expense recognised in respect of share-based payments
4,029
3,128
6,266
Deferred tax
(7,712) (5,433) (16,426)
53,802 32,182 62,397
Movements in working capital:
Trade and other receivables
(135,766) (119,909) (218,232)
Prepayments
(14,453) (10,406) (19,733)
Inventories
(86,213) (89,634) (322,975)
Current tax refundable/payable
(19,387) (6,670) 4,946
Trade and other payables
208,504 216,647 415,846
Employee benefits
(6,990) (450) 18,358
Foreign currency translation of working capital balances
3,056 (228) 15
(51,249) (10,650) (121,775)
Balances classified as investing activities
24,639 (24,307) (30,883)
Working capital items acquired (including fair value adjustments)
(3,718) 7,564 136,959
Net cash inflow from operating activities
161,065 106,781 248,736
14
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Continued)
For the six months ended 31 December 2022
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, including distribution of medical devices and
medical consumables, own brands, retail healthcare, pharmacy and logistic 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$’000
Six months ended 31 December 2022 (unaudited):
Revenue from external customers
5,854,561
291,161
-
6,145,722
EBITDA
254,952 50,965 (16,737) 289,180
Depreciation of property, plant and equipment
(15,171)
(2,126)
-
(17,297)
Depreciation on right of use assets
(22,755) (2,835) (550) (26,140)
Amortisation of finite life intangibles attributable
to fair value adjustments for the LifeHealthcare
Group acquisition
(13,469) - - (13,469)
Amortisation of other finite life intangibles
(5,858) (398) - (6,256)
EBIT
197,699 45,606 (17,287) 226,018
Net finance costs
- - (33,391) (33,391)
Tax (expense)/benefit
(55,440) (12,206) 12,610 (55,036)
Profit for the period
142,259 33,400 (38,068) 137,591
Non-controlling interests
(5,393) - - (5,393)
Profit for the period attributable to owners of the
Company
136,866 33,400 (38,068) 132,198
Six months ended 31 December 2021 (unaudited):
Revenue from external customers
4,976,881
273,979
-
5,250,860
EBITDA
177,472 38,768 (16,359) 199,881
Depreciation of property, plant and equipment
(10,206)
(491)
-
(10,697)
Depreciation on right of use assets
(18,108) (2,844) (550) (21,502)
Amortisation of finite life intangibles
(6,255) (114) - (6,369)
EBIT
142,903 35,319 (16,909) 161,313
Net finance costs
- - (13,800) (13,800)
Tax (expense)/benefit
(44,759) (9,897) 9,135 (45,521)
Profit for the period
98,144 25,422 (21,574) 101,992
Non-controlling interests
(126) - - (126)
Profit for the period attributable to owners of the
Company
98,018 25,422 (21,574) 101,866
15
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Continued)
For the six months ended 31 December 2022
6. SEGMENT INFORMATION (Continued)
Healthcare
A$’000
Animal Care
A$’000
Corporate
A$’000
Group
A$’000
Year ended 30 June 2022 (audited):
Revenue from external customers
10,192,778
541,341
-
10,734,119
EBITDA 358,517 79,961 (32,668) 405,810
Depreciation of property, plant and equipment
(21,029)
(1,528)
-
(22,557)
Depreciation on right of use assets
(38,275) (5,602) (1,100) (44,977)
Amortisation of finite life intangibles attributable
to fair value adjustments for the LifeHealthcare
Group acquisition
(1,451) - - (1,451)
Amortisation of other finite life intangibles
(12,638) (249) - (12,887)
EBIT
285,124 72,582 (33,768) 323,938
Net finance costs
- - (28,685) (28,685)
Tax (expense)/benefit
(89,323) (19,392) 15,500 (93,215)
Profit for the period
195,801 53,190 (46,953) 202,038
Non-controlling interests
567 - - 567
Profit for the period attributable to owners of the
Company
196,368 53,190 (46,953) 202,605
The accounting policies of the reportable segments are consistent with the Group’s accounting policies. Segment result
represents profit before depreciation, amortisation, net finance costs and tax. This is the measure reported to the chief
operating decision maker for the purposes of resource allocation and assessment of segment performance.
(c) Segment assets
Assets are not allocated to operating segments as they are not reported to the chief operating decision-maker at segment
level.
(d) Revenues from major products and services
The Group’s major products and services are transacted the same as its reportable segments i.e. Healthcare, Animal Care and
Corporate.
(e) Geographical information
The Group operates in two principal geographical areas: (1) Australia and (2) New Zealand and South East Asia (country of
domicile).
The Group’s revenue from external customers by geographical location (of the reportable segment) and information about its
segment assets (non-current assets excluding investments in associates and deferred tax assets) are detailed below:
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
Revenue from external customers
Australia
5,008,362 4,173,467 8,636,607
New Zealand and South East Asia
1,137,360 1,077,393 2,097,512
6,145,722 5,250,860 10,734,119
Non-current assets
Australia
2,673,704 1,418,856 2,618,871
New Zealand and South East Asia
462,805 384,197 442,643
3,136,509 1,803,053 3,061,514
16
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Continued)
For the six months ended 31 December 2022
7. BANK FACILITY AND BORROWINGS
The Group fully complies with and operates within the financial covenants under the arrangements with its bankers. During the
period, the Group completed the refinance of a $250.0 million facility due to mature in March 2023. The facility limit was
increased to a $400.0 million, 4 year facility, with a maturity date of November 2026. At 31 December 2022 the Group had
unutilised term loan facilities of $505.3 million (December 2021: $522.1 million, June 2022: $224.0 million).
The Group also has a secured trade debtor securitisation facility of which $369.1 million was unutilised at 31 December 2022
(December 2021: $400.0 million, June 2022: $178.5 million). In addition, the Group has a $75.0 million term debt facility secured
by property, plant and equipment. All other debt is linked to a corporate guarantee structure established under bank financing
arrangements.
As at 31 December 2022, the maturity profile of the Group’s term debt and securitisation facilities was:
Facility Amount Maturity
Term debt facilities $226.9 million 1-2 years
Term debt facilities $563.0 million 2-3 years
Term debt facilities $745.0 million 3-4 years
Securitisation facility $400.0 million 2-3 years
8. FINANCIAL INSTRUMENTS
The Group enters into forward foreign currency exchange contracts to hedge trading transactions, including anticipated
transactions, denominated in foreign currencies; and uses interest rate swaps and interest rate collars to manage cash flow
interest rate risk.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the
nature of the hedge relationship. The Group designates certain derivatives as cash flow hedges of highly probable forecast
transactions.
Fair value of derivative financial instruments
Six months
31 Dec 22
A$’000
(unaudited)
Six months
31 Dec 21
A$’000
(unaudited)
Year ended
30 Jun 22
A$’000
(audited)
Other financial assets – derivatives (at fair value)
Forward foreign exchange contracts
2,192 840 4,330
Interest rate swaps
555 - 392
Interest rate collars
17,297 - 15,000
20,044 840 19,722
Other financial liabilities – derivatives (at fair value)
Forward foreign exchange contracts
611 2 -
Interest rate swaps
- 3,085 -
Other financial liabilities – consideration for remaining
non-controlling interests (Note 10)
137,000
-
137,000
137,611 3,087 137,000
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 and interest rate collars are valued using a discounted cash flow valuation. Key inputs for the
valuation of interest rate swaps and interest rate collars 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, interest rate
swaps or interest rate collars during the current reporting period.
17
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Continued)
For the six months ended 31 December 2022
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
LifeHealthcare Group acquisition
On 31 May 2022, the Group, through its subsidiary EBOS Medical Devices Pty Ltd, acquired 100% of equity interest in Pacific
Health Supplies TopCo1 Pty Ltd and Pacific Health Supplies TopCo2 Pty Ltd (LifeHealthcare Group). Due to the proximity of the
acquisition date to balance date 30 June 2022 and the material nature of the entities being acquired, the business combination
accounting was considered provisional, and presented as such, in the Group’s 30 June 2022 financial statements.
During the current period, the acquisition accounting adjustments have been updated to reflect independent valuations
performed on the inventories and intangible assets recognised as part of the acquisition. The purchase price allocation as set out
below is measured on a provisional basis and is subject to change pending finalisation of the valuation of the assets acquired and
liabilities assumed, including the finalisation and lodgement of the company’s tax returns in the second half of the financial year.
The difference between the purchase price and fair values of the identifiable net assets has been provisionally recognised as
goodwill.
If new information is obtained within the twelve months from acquisition date about facts and circumstances that existed at the
acquisition date which identify adjustments to fair values; or any additional provisions that existed at the acquisition date; then
the accounting for the acquisition, including the value of goodwill, will be revised.
The provisional fair values of the identifiable assets and liabilities acquired are as follows:
Carrying value
A$’000
(audited)
Fair value
adjustment
A$’000
(unaudited)
Fair value on
acquisition
A$’000
(unaudited)
Current assets
Cash and cash equivalents 19,042 - 19,042
Trade and other receivables 79,123 (11,061)
1
68,062
Prepayments 6,086 (193)
2
5,893
Inventories 131,038 (12,317)
3
118,721
Other financial assets - derivatives 968 - 968
Non-current assets
Property, plant and equipment 33,776
-
33,776
Indefinite life intangibles - 52,973
4
52,973
Finite life intangibles 91,466 249,437
5
340,903
Deferred tax assets - 7,859
6
7,859
Right of use assets 16,072
-
16,072
Other financial assets 506
-
506
Current liabilities
Trade and other payables (58,288) (872)
7
(59,160)
Bank loans (5,768) - (5,768)
Lease liabilities (2,721)
-
(2,721)
Current tax payable (1,482)
-
(1,482)
Employee benefits (11,445)
-
(11,445)
Non-current liabilities
Trade and other payables (676)
-
(676)
Bank loans (26,417)
-
(26,417)
Lease liabilities (13,351)
-
(13,351)
Deferred tax liabilities (16,285) (80,358)
8
(96,643)
Employee benefits (401)
-
(401)
Net assets acquired
241,243 205,468
446,711
Goodwill on acquisition
776,042
Non-controlling interests arising on acquisition (29,632)
Total consideration
1,193,121
18
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Continued)
For the six months ended 31 December 2022
10. ACQUISITION INFORMATION (Continued)
1. To recognise the fair value of trade and other receivables on acquisition. This adjustment was made in the previously reported
30 June 2022 acquisition balance sheet.
2. To recognise the fair value of prepayments on acquisition.
3. To recognise the fair value of inventories on acquisition.
4. To recognise the fair value of the LifeHealthcare and Transmedic brands on acquisition.
5. To recognise the fair value of exclusive supply contracts and other intangibles on acquisition.
6. To recognise deferred tax assets on acquisition.
7. To recognise the fair value of trade and other payables on acquisition.
8. To recognise deferred tax liabilities on acquisition.
Put option over non-controlling interests
The Group also entered into arrangements providing a pathway to 100% ownership of Transmedic (a subsidiary of LifeHealthcare
Group), resulting in a financial liability – derivative of $137.0m being recognised on the balance sheet as at 30 June 2022 and a
corresponding adjustment to non-controlling interests.
During the period, the amount expected to be paid at the time of exercise was reassessed as the Group considered the key terms
of the shareholders agreement and the business outlook. In the period, no material change to the estimate of the amount
expected to be paid at the time of exercise was determined and a portion of the discount on the put option liability was unwound
directly through equity within non-controlling interests. As at 31 December 2022, the carrying value of the put option liability was
$137.0m.
Other acquisitions
There were no material acquisitions of subsidiaries during the period. Combined details of acquisitions undertaken during the
current period are as follows:
A$’000
(unaudited)
Net assets acquired 635
Goodwill on acquisition
16,276
Total consideration 16,911
Less deferred purchase consideration
(739)
Less cash and cash equivalents acquired (6)
Plus deferred purchase consideration paid in relation to prior year acquisitions 20,762
Net cash outflow from acquisition 36,928
11. EVENTS AFTER BALANCE DATE
Subsequent to 31 December 2022, the Board approved an interim dividend to shareholders. For further details please refer to
Note 4.
19
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
Tracey Batten Independent Director
Mark Bloom Independent Director (appointed September 2022)
Stuart McGregor Independent Director
Stuart McLauchlan Independent Director
Sarah Ottrey Independent Director
Peter Williams Independent Director
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 2022
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 2022.
1. DETAILS OF THE REPORTING PERIOD AND THE PREVIOUS CORRESPONDING PERIOD
Current period: Six months ended 31 December 2022
Previous corresponding period Six months ended 31 December 2021
This report and the attached Consolidated Financial Report are presented in Australian dollars, being the
Group’s presentation currency.
2. RESULTS FOR ANNOUNCEMENT TO THE MARKET
Group Results31 Dec 202231 Dec 2021Change
(Unaudited)AUD $000AUD $000%
Revenue6,145,7225,250,86017.0%
Earnings before depreciation, amortisation, net finance costs
and tax expense (EBITDA)
289,180199,88144.7%
Depreciation and amortisation(63,162)(38,568)(63.8%)
Earnings before interest and tax (EBIT)226,018161,31340.1%
Profit before tax (PBT)192,627147,51330.6%
Net profit after tax (NPAT)137,591101,99234.9%
Net profit after tax (NPAT) attributable to owners of the
Company
132,198101,86629.8%
Weighted average number of shares190,018165,87514.6%
Basic EPS – (CPS)69.661.413.3%
Net tangible asset backing per ordinary share – ($)($3.79)$2.18
Underlying EBITDA
(refer reconciliation below)289,180207,65239.3%
Underlying EBIT
(refer reconciliation below)239,487169,08441.6%
Underlying PBT
(refer reconciliation below)206,096155,28432.7%
Underlying Net profit after tax (NPAT) attributable to the
owners of the Company
(refer reconciliation below)141,626109,27129.6%
Underlying EPS – (CPS)74.566.612.0%
EBOS GROUP LIMITED
APPENDIX 4D
2
Dividends Amount Per Share
(NZ$ Cents)
Franked amount per
security to 30% tax rate
Interim dividend payable 17 March 2023 53.0c 100%
Interim dividend – previous corresponding period
47.0c
100%
Key dates for the 2023 Interim Dividend
Ex-dividend date 02 March 2023
Record date 03 March 2023
(5.00pm NZST)
Dividend payment date 17 March 2023
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
1
Underlying EBITDA, Underling EBIT, Underlying PBT and Underlying Net Profit after Tax attributable to the owners of the Company
are non-GAAP measures. Underlying earnings for the 31 December 2022 period excludes the amortisation (non-cash) expense
attributable to the LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets ($13.5m pre tax, $9.4m
post tax). Underlying earnings for the 31 December 2021 period excludes transactions costs incurred on M&A ($7.8m pre tax, $7.4m
post tax).
Reconciliation of Reported vs Underlying Earnings31 Dec 202231 Dec 2021Change
(Unaudited)AUD $000AUD $000%
Reported EBITDA289,180199,88144.7%
Add back one-off items incurred during the period
1
-7,771
Underlying EBITDA289,180207,65239.3%
Reported EBIT226,018161,31340.1%
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,469-
Add back one-off items incurred during the period
1
-7,771
Underlying EBIT239,487169,08441.6%
Reported PBT192,627147,51330.6%
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,469-
Add back one-off items incurred during the period
1
-7,771
Underlying PBT206,096155,28432.7%
Reported Net Profit after Tax (NPAT) attributable to owners
of the Company
132,198101,86629.8%
Add back amortisation (non-cash) on LifeHealthcare PPA
1
(net of tax and after non-controlling interests)
9,428-
Add back one-off items incurred during the period
1
(net of tax
and after non-controlling interests)
-7,405
Underlying Net Profit after Tax (NPAT) attributable to
owners of the Company
141,626109,27129.6%
EBOS GROUP LIMITED
APPENDIX 4D
3
For supplementary comments on the Group’s financial results refer to the Results Presentation, Letter to
Shareholders and Media Release issued 22 February 2023.
4. DIVIDENDS PAID AND DECLARED
Group Results
(Unaudited)
Amount
Per Share
(NZ$ Cents)
Amount
Per Share
(A$ Cents)
Total
Amount
(A$)
Date Paid / Payable
Dividends declared in respect of
the year ending 30 June 2023
2023 interim dividend 53.0 cents 48.4 cents $94,631,000 17 March 2023
Dividends paid during the year
ended 30 June 2022
2022 final dividend 49.0 cents 43.9 cents $83,001,000 30 September 2022
2022 interim dividend 47.0 cents 43.7 cents $82,164,000 18 March 2022
96.0 cents 87.6 cents $165,165,000
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.
5. DIVIDEND REINVESTMENT PLAN
The Company's dividend reinvestment plan ('DRP') will be operable for this dividend. The EBOS Board has
approved a discount of 2.5% to the Volume Weighted Average Sales Price ('VWAP') for the shares to be issued
under the DRP for the 2023 interim dividend.
6. ENTITIES ACQUIRED
There were no material acquisitions undertaken during the period. The provisional fair values of the
identifiable assets and liabilities acquired attributable to the acquisition of the LifeHealthcare Group, in May
2022, have been disclosed in Note 10 of the attached condensed consolidated interim unaudited financial
statements.
EBOS GROUP LIMITED
APPENDIX 4D
4
7. ASSOCIATES AND JOINT VENTURES
The Group equity accounted the following material associate entities at 31 December 2022.
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 2022 was $5,428,000 (2021:
$4,088,000).
8. FOREIGN ENTITIES
The Consolidated 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.
---
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 2022
Previous Reporting Period 6 months to 31 December 2021
Currency AUD
Amount (AUD $000s) Percentage change
Revenue from continuing operations $6,145,722 17.0%
Total Revenue $6,145,722 17.0%
Underlying net profit from continuing operations
attributable to security holders
1
$141,626 29.6%
Net profit/(loss) from continuing operations $132,198 29.8%
Total net profit/(loss) $132,198 29.8%
Final Dividend
Amount per Quoted Equity Security NZD $0.53000000
Imputed amount per Quoted Equity Security NZD $0.05152778
Record Date 03 March 2023
Dividend Payment Date 17 March 2023
Current period
Prior comparable
period
Net tangible assets per Quoted Equity Security
2
AUD($3.79) AUD$2.18
A brief explanation of any of the figures above
necessary to enable the figures to be understood
Refer to the Interim Report, Results Presentation,
Media Release and Letter to Shareholders for
EBOS Group Limited for the six month period to
31 December 2022, issued on 22 February 2023.
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
22 February 2023
Unaudited condensed consolidated interim financial statements accompany this announcement.
1
Underlying earnings for the 31 December 2022 period excludes the amortisation (non-cash) expense attributable to the
LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets ($13.5m pre tax, $9.4m post
tax). Underlying earnings for the 31 December 2021 period excludes transactions costs incurred on M&A ($7.8m pre tax,
$7.4m post tax). Refer to Appendix 1 for reconciliation between reported and underlying earnings.
2
Net Tangible Assets excludes A$291.4m (December 2021: A$237.4m) of Right of Use assets, although includes
A$312.1m (December 2021: A$256.7m) of lease liabilities in relation to the adoption of NZ IFRS 16 ‘Leases’.
Appendix 1:
1 Underlying EBITDA, Underling EBIT, Underlying PBT and Underlying Net Profit after Tax attributable to the owners of
the Company are non-GAAP measures. Underlying earnings for the 31 December 2022 period excludes the amortisation
(non-cash) expense attributable to the LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible
assets ($13.5m pre tax, $9.4m post tax). Underlying earnings for the 31 December 2021 period excludes transactions
costs incurred on M&A ($7.8m post tax, $7.4m post tax).
Reconciliation of Reported vs Underlying
Earnings
31 Dec 2022
31 Dec 2021
Change
(Unaudited)
AUD $000
AUD $000
%
Reported EBITDA
289,180
199,881
44.7%
Add back one-off items incurred during the period
1
-
7,771
Underlying EBITDA
289,180
207,652
39.3%
Reported EBIT
226,018
161,313
40.1%
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,469
-
Add back one-off items incurred during the period
1
-
7,771
Underlying EBIT
239,487
169,084
41.6%
Reported PBT
192,627
147,513
30.6%
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,469
-
Add back one-off items incurred during the period
1
-
7,771
Underlying PBT
206,096
155,284
32.7%
Reported Net Profit after Tax (NPAT) attributable to owners
of the Company
132,198
101,866
29.8%
Add back amortisation (non-cash) on LifeHealthcare PPA
1
(net of tax and after non-controlling interests)
9,428
-
Add back one-off items incurred during the period
1
(net of tax
and after non-controlling interests)
-
7,405
Underlying Net Profit after Tax (NPAT) attributable to
owners of the Company
141,626
109,271
29.6%
---
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 X
Record date 03 March 2023
Ex-Date (one business day before the
Record Date)
02 March 2023
Payment date (and allotment date for
DRP)
17 March 2023
Total monies associated with the
distribution
1
NZD $101,038,031
(AUD $94,631,480)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
NZD $0.58152778
Gross taxable amount
3
NZD $0.58152778
Total cash distribution
4
NZD $0.53000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount NZD $0.02338235
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%
Imputation tax credits per financial
product
NZD $0.05152778
Resident Withholding Tax per financial
product
NZD $0.14037639
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.
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2.5%
Start date and end date for determining
market price for DRP
06 March 2023 10 March 2023
Date strike price to be announced (if not
available at this time)
15 March 2023
Specify source of financial products to be
issued under DRP programme (new issue
or to be bought on market)
New shares issued
DRP strike price per financial product
The EBOS Board has approved a discount of 2.5% to the
Volume Weighted Average Sales Price ('VWAP') for the
shares to be issued under the DRP for the 2023 interim
dividend. The VWAP shall be determined over the period of
06 March 2023 to 10 March 2023.
Last date to submit a participation notice
for this distribution in accordance with
DRP participation terms
06 March 2023
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
22 February 2023
---
EBOS GROUP LIMITED
(“Company”)
Directors’ Declaration in respect of the Group Financial Statements
for the six months ended 31 December 2022
Declaration
The Directors of the Company hereby declare that, in the Directors’ opinion:
• The EBOS Group Limited consolidated interim unaudited financial statements for the six
months ended 31 December 2022 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 2022 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 21 February 2023 and
is signed for and on behalf of directors by the board chairman.
Signed
E Coutts
Chairperson
21 February 2023
---
Page 1
EBOS Group Limited 2023 Interim Shareholders Report
Dear Shareholder,
EBOS is pleased to report another record financial
performance for the first half of the 2023 financial year,
driven by both organic growth and the contribution from
acquisitions, reflecting the benefits of our disciplined
investment strategy.
The half-year result emphasises the continued strong
performance of our Healthcare and Animal Care
segments, which delivered a combined 17.0% revenue
increase to $6.1 billion and a significant 39.3% increase
in underlying EBITDA to $289.2 million.
The strong growth and earnings trajectory continues
EBOS’ long-term track record of delivering for its
shareholders and is a testament to the combined efforts
of our approximately 5,000 employees across New
Zealand, Australia and Southeast Asia.
EBOS’ positive performance has come despite our
diverse businesses having experienced operational
challenges due to supply side constraints, including
stock shortages and availability of personnel.
The current inflationary environment has increased
cost of goods sold, labour, and freight, but each of our
divisions has implemented strategies to mitigate the
increases and preserve margins.
Key Highlights
Financial Highlights
$6.1 billion Revenue +17.0% increase
$289.2 million EBITDA +39.3% increase
$141.6 million NPAT +29.6% increase
Underlying Results
74.5c +12.0%
underlying earnings per share
NZ 53.0c + 12.8%
interim dividend per share
$6.1b + 17.0%
revenue
31 December 2022
2O23 Half Year Results
Interim Shareholders
Report 2023
Underlying EBITDA
Six months to 31 December ($millions)
2022
289.2
2 0 7. 7
2021
184.1
2020
168.4
2019
131.4
2018
Underlying net profit after tax
Six months to 31 December ($millions)
2022
141.6
109.3
2021
94.3
2020
82.6
2019
72.7
2018
Page 2
EBOS Group Limited 2023 Interim Shareholders Report
Key highlights of the first half included:
• Revenue of $6.1 billion (up 17.0%)
• Underlying EBITDA of $289.2 million (up 39.3%)
1
• Underlying NPAT of $141.6 million (up 29.6%)
1
• Underlying EPS of 74.5 cents (up 12.0%)
1
• Interim dividend declared of NZ 53.0 cents per share
(up 12 .8%)
• Continued strong performances from both our
Healthcare and Animal Care segments, with
Healthcare’s Underlying EBITDA up 37.6% and Animal
Care’s EBITDA up 31.5%
• Underlying EBITDA margin of 4.71% (up 76bp)
• Net Debt : EBITDA of 1.76x (1.94x at June 2022)
reflecting a strong cash flow performance.
Healthcare summary
Our Healthcare segment generated revenue of
$5.9 billion and Underlying EBITDA of $255.0 million,
an increase of 17.6% and 37.6% respectively on the prior
corresponding period.
This performance was driven by our leading market
positions and strong contributions from our Community
Pharmacy, TerryWhite Chemmart (“TWC”), Institutional
Healthcare and Contract Logistics divisions and
businesses, which all recorded double-digit gross
operating revenue (“GOR”) growth. Institutional
Healthcare was a standout performer due to
contributions from acquisitions completed in FY22.
Community Pharmacy revenue increased by
$578.6 million (up 18.4%), driven by customer and market
share growth, a strong performance from our community
pharmacy retail brands including TWC, above market
growth in ethical sales to our major wholesale customers
and sales growth of high value specialty medicines.
In addition, the results benefitted from higher sales
of COVID-19 related products including anti-viral
medications and cold and flu OTC products.
TWC further strengthened its position as Australia’s
largest health advice-oriented community pharmacy
network by welcoming 26 new pharmacies during the
period, taking the network total to greater than
540 stores nationally.
TWC demonstrated strong network sales performance
with 18.6% total growth and 15.8% like-for-like growth.
A continued focus and investment in our TWC catalogue
and promotional program, increases in media spend, and
the development of a new myTWC app to make it easier
for customers to order and manage medications and
bookings, all reinforced TWC’s positive performance.
Institutional Healthcare generated revenue growth
of $285.6 million (up 19.4%) and GOR growth of
$128.7 million (up 81.3%), predominantly driven by the
contributions of five acquisitions completed in FY22.
The acquisitions included Pioneer Medical, Sentry
Medical, MD Solutions and LifeHealthcare, which
together significantly expanded our presence in medical
consumables and medical technology distribution.
Further progress has been made during the period on the
integration of LifeHealthcare into the Group’s enlarged
medical technology division. LifeHealthcare’s financial
performance was in-line with expectations, providing
significant earnings growth for the Group. Management
now anticipates that implementation of the integration
activities to be undertaken in the second half of the
financial year will result in one-off costs of approximately
$12.5 million. The integration activities and expected
costs include rationalisation of operating sites and
inventory lines, IT systems integration and stamp duty.
The financial benefits from these activities will be realised
in FY24 and beyond.
Contract Logistics increased GOR by $15.7 million
(up 26.0%), attributable to growth in Australia from
new and existing principals and growth in New Zealand
from continued demand for storage and servicing of
protective equipment.
The Healthcare segment continued to invest in its
operational infrastructure to support its growth,
including the construction of new contract logistics
distribution centres in Auckland (nearing completion)
and Sydney, which is ongoing with an expected opening
in late 2023.
Healthcare results by region
Australia
$4.8b + 20.8%
revenue
$203.4m + 35.4%
Underlying EBITDA
New Zealand and Southeast Asia
$1.1b + 5.7%
revenue
$51.6m + 47.3%
Underlying EBITDA
1
Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense attributable to the LifeHealthcare acquisition purchase
price accounting of finite life intangible assets ($13.5m pre-tax and $9.4m post tax). Underlying earnings for the 31 December 2021 period exclude transaction
costs incurred on M&A ($7.8m pre-tax and $7.4m post tax).
Page 3
EBOS Group Limited 2023 Interim Shareholders Report
Segment Overview
HealthcareAnimal Care
Animal Care summary
Our Animal Care segment generated revenue of
$291.2 million and EBITDA of $51.0 million, an increase of
6.3% and 31.5% respectively on the prior corresponding
period. This growth was driven by strong performances
from our leading brands and businesses (Black Hawk,
Vitapet and Lyppard), and the benefits of our new pet
food manufacturing facility at Parkes, NSW.
Strong pet market conditions have continued and
our brands and businesses have benefitted from this.
Black Hawk and Vitapet continued to maintain share
leadership in their respective segments.
Our new pet food manufacturing facility is successfully
operating and delivering commercial production rates
that meet Black Hawk demand and support our strategy
of new product development. The facility is enhancing
our local supply chain capabilities and providing a
competitive advantage for the Black Hawk range.
Cash Flow, Net Debt and Return on Capital Employed
EBOS generated underlying operating cash flow
of $161.1 million, a 40.6% increase on the prior
corresponding period. This result benefitted from both
strong earnings growth and our continued disciplined
approach to managing working capital.
Return on Capital Employed (“ROCE”) of 14.4% was below
December 2021 by 3.8% and is in-line with expectations.
The reduction in ROCE was due to the long-term
investment in building our position in the medical
technology distribution sector through the acquisition of
LifeHealthcare. The Group maintains its 15% ROCE target
and aims to exceed this level again in the medium term.
Net Debt : EBITDA ratio at 31 December 2022 was 1.76x
(1.94x as at 30 June 2022) reflecting strong cash flow
and earnings growth. Current gearing is within our target
range and the Group is well positioned to support further
growth opportunities.
Sustainability and Community
FY22 and the first half of FY23 were significant periods
for EBOS’ ESG Program as we progressed new initiatives
and accelerated our ambitions to be a carbon neutral
company.
The EBOS Board took decisive action towards carbon
neutrality by approving the scoping of an 18.8MW
solar array which is forecast to meet all of the Group’s
Australian electricity requirements by FY27.
The first phase of this major infrastructure investment
includes a 240kW roof-mounted array at our pet care
manufacturing facility at Parkes, NSW. Phase One
installation is on target for completion this year. We are
now preparing to deliver the second phase of the project,
a 6MW ground-mounted solar system which is expected
to be completed in FY24.
Last year we set a target to become Carbon Neutral
for Scope 1 emissions during FY23. These emissions
include but are not limited to emissions from refrigerants
and company motor vehicles and are on track to be
measured and offset prior to the end of the financial year.
We have recently developed a new Ethical Sourcing
Strategy which aims to engage suppliers that are aligned
to EBOS’ corporate values. The strategy is supported
by a Supplier Code of Conduct and an Ethical Sourcing
Policy which outlines specific supplier requirements on
child labour, employee payments and anti-discrimination
and harassment.
Over our 100 years of history, EBOS has built strong and
enduring connections with communities in New Zealand
and Australia. Central to these relationships is helping
to raise funds for, and support, organisations striving to
save and change lives.
Our company and employees supported organisations
including Ovarian Cancer Australia, BackTrack, LandSAR,
FightMND, Cerebral Palsy Alliance’s Steptember
fundraiser and many more.
Underlying EBITDA
1
Six months to 31 December ($millions)
EBITDA
Six months to 31 December ($millions)
2022
255.0
185.2
2021
161.3
2020
1 47.1
2019
112.7
20182022
51.0
38.8
2021
33.9
2020
28.5
2019
24.3
2018
Printed on recycled stock
Following the recent weather events in New Zealand our
teams ensured that supply channels remained opened
to continue to serve the local communities. In one instance
our Onelink and Healthcare Logistics operations combined
with the New Zealand Defence Force and Health NZ to
deliver urgent medicines and medical consumables
into Whangarei hospital in the Northland region due to
road closures and flooding following Cyclone Gabrielle.
This is another example of the critical importance our
healthcare businesses are to the supply of medicines
and related products across New Zealand and Australia
and underlines the commitment of our people in times of
natural disasters.
In December 2022, the External Reporting Board
published compulsory Climate Related Disclosures that
EBOS will need to disclose commencing in FY24. EBOS
is currently preparing for these Government mandated
disclosures to ensure we meet the requirements.
We look forward to providing a more detailed account of
our ESG Program in our 2023 Sustainability Report.
Interim Dividend
The Directors declared an interim dividend of NZ 53.0
cents per share, an increase of 12.8% on the prior
corresponding period. This implies a dividend payout
ratio of 69.8%.
2
The Dividend Reinvestment Plan (“DRP”) will be operational
for the interim dividend. Shareholders can elect to take
shares in lieu of a cash dividend at a discount of 2.5% to the
volume weighted average share price (“VWAP”).
The record date for the dividend is 3 March 2023
and the dividend will be paid on 17 March 2023.
The dividend will be imputed to 25% for New Zealand tax
resident shareholders and fully franked for Australian tax
resident shareholders.
Outlook
EBOS is pleased with the strong earnings growth in
the first half of FY23 and we expect another full year of
profitable growth.
EBOS‘ balance sheet is strong and we are well positioned
to pursue new growth opportunities, in line with our
strategic vision, and continue to deliver value to our
shareholders and the communities we serve.
Thank you again for your ongoing support.
Liz Coutts
Chair of the Board
John Cullity
Chief Executive Officer
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EBOS Group Limited 2023 Interim Shareholders Report
2
Dividend payout ratio is based on a NZD:AUD average exchange rate of
0.914.
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.