Half Year Results
21 February 2024
MARKET RELEASE
NZX/ASX Code: EBO
EBOS 2024 Half-Year Results
EBOS ACHIEVES STRONG GROWTH REFLECTING THE BENEFITS OF ITS DIVERSIFIED
PORTFOLIO
Half-Year Highlights
• Revenue of $6.6 billion (up 7.1%)
• Underlying EBITDA of $313.2 million (up 8.3%)
• Underlying NPAT
of $152.4 million (up 7.6%)
• Underlying EPS of 79.5 cents (up 6.6%)
• Interim dividend declared of NZ 57.0 cents per share (up 7.5%)
• Continued strong performances from both our Healthcare and Animal Care segments with
Healthcare Underlying EBITDA up 8.0% and Animal Care Underlying EBITDA up 8.6%
• Stronger Group Underlying EBITDA growth of approximately 10% when normalised to exclude
the Chemist Warehouse Australia contract
• Significant investments undertaken in the half, in line with our strategy of investing for growth:
o Increased shareholding in our Southeast Asian medical technology distribution business,
Transmedic, to 90%
o Completed the acquisition of Superior Pet Food Co. (Superior), a leading New Zealand
manufacturer and supplier of premium dog rolls
o Capital expenditure of $66 million invested into our operational infrastructure
• ROCE increased by 70 bp to 15.1%, in line with target
$m
1,2
Underlying Results
3
Statutory Results
Total Revenue $6,582.5m up 7.1% $6,582.5m up 7.1%
EBITDA $313.2m up 8.3% $303.1m up 4.8%
EBIT $259.9m up 8.5% $236.7m up 4.7%
Net Profit after Tax $152.4m up 7.6% $136.2m up 3.0%
Earnings per Share
4
79.5 cents up 6.6% 71.0 cents up 2.1%
Interim Dividend per Share NZ 57.0 cents up 7.5%
EBITDA margin 4.76% up 5bp 4.60% down 10bp
Operating Cash Flow $115.6m down 28.3% $105.5m down 34.5%
ROCE 15.1% up 70bp
Net Debt : EBITDA
5
2.06x up 0.30x
1
All amounts included are denoted in Australian dollars unless otherwise stated.
2
Comparisons shown to prior corresponding period.
3
Underlying earnings for both the 31 December 2023 and 31 December 2022 periods exclude the amortisation (non-cash)
expense attributable to the LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets.
Underlying earnings for the 31 December 2023 period also exclude one-off M&A costs. 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 and excludes IFRS 16 lease impacts.
2
In commenting on today’s results, EBOS Chief Executive Officer, John Cullity said:
“We are pleased to report another strong performance for the Group driven by continued organic
growth as well as several strategic investments. The Group also continued to deliver strong
normalised growth excluding the Chemist Warehouse Australia contract, with Underlying EBITDA
growing by approximately 10%, demonstrating the benefits of our diversification, which provides
multiple growth levers.”
EBOS’ Healthcare segment benefitted from its leading market positions and had solid contributions
from each of the Community Pharmacy, TerryWhite Chemmart (TWC) and Institutional Healthcare
divisions and businesses. Underlying EBITDA margins were maintained due to continued effective
cost management in the current inflationary environment.
The Animal Care segment demonstrated strong resilience, as the specialty pet industry experiences a
shift towards larger national retailers. The strength of our brands and our longstanding relationships
with these retailers positions us well in the changing environment. The branded business also
continues to focus on its new product development pipeline, leveraging our in-house manufacturing
capabilities.
Consistent with our strategy of investing for growth, we increased our shareholding in Transmedic to
90% and entered into an option arrangement that will facilitate us moving to 100% in approximately
two years. Transmedic is one of the largest independent medical device distributors in Southeast Asia
with a presence in seven countries. The transaction reflects our confidence in the business and is
consistent with our strategy to explore further growth opportunities in Southeast Asia.
In addition, we completed the acquisition of Superior, which is a leading New Zealand manufacturer
and supplier of premium dog rolls and supplier of dog treats. This acquisition expands our portfolio
of branded products in attractive categories, increases our in-house manufacturing capabilities and
accelerates our new product development initiatives. Since being acquired, Superior has performed
in line with expectations.
In commenting on today’s result, EBOS Chair, Elizabeth Coutts said:
“It is pleasing to see EBOS continue its long term growth trajectory and deliver value for our
stakeholders. The success we have achieved is the result of the combined efforts of our more than
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 2023 31 Dec 2022 Growth
Revenue $6,296.3m $5,854.6m 7.5%
Statutory EBITDA $273.6m $255.0m 7.3%
Underlying EBITDA
6
$275.5m $255.0m 8.0%
Underlying EBITDA margin 4.38% 4.35% 3bp
Our Healthcare segment generated revenue of $6.3 billion and Underlying EBITDA of $275.5 million,
an increase of 7.5% and 8.0% respectively on the prior corresponding period. This performance was
driven by our leading market positions, strong organic growth and continued focus on margin
management.
In Australia, Healthcare revenue increased to $5.0 billion and Underlying EBITDA increased to $228.6
million, an increase of 6.1% and 12.4% respectively. In New Zealand & Southeast Asia, Healthcare
revenue increased to $1.3 billion representing growth of 14.0%, while Underlying EBITDA decreased
to $46.8 million. Southeast Asia EBITDA continued to grow strongly, up 7.4%, driven by our
Transmedic business, however New Zealand EBITDA was impacted by a decline in non-recurring
COVID-19 activity within our Contract Logistics business.
Community Pharmacy revenue increased by $181.0 million (up 4.9%), driven by the performance of
our community pharmacy retail brands including TWC and increased wholesale market share.
Excluding revenue from COVID-19 related anti-viral medications, Community Pharmacy delivered
normalised revenue growth of 8.3%. Our TWC franchise network has continued its store expansion
and sales growth, further strengthening its position as Australia’s largest health advice-oriented
community pharmacy network.
Institutional Healthcare revenue increased by $205.8 million (up 11.7%) and Gross Operating
Revenue (GOR) increased by $17.4 million (up 6.0%), driven by growth in Symbion Hospitals and our
Medical Technology businesses. Symbion Hospitals revenue grew by approximately 15%
predominantly due to sales of high value specialty medicines. Our Medical Technology division
delivered first half revenue growth of 10.2% driven by increasing surgical volumes particularly within
the implant channels. Medical consumables contribution was lower due to the unwind of PPE and
other COVID-19 related activity.
Our Contract Logistics business in Australia continues to generate growth through new and existing
principals. Our recently completed facility in Sydney, NSW will accommodate ongoing growth in the
business. In New Zealand, the Contract Logistics business experienced a reduction in first half GOR
due to a fall in demand for the storage and servicing of COVID-19 related products and as a result
overall, Contract Logistics GOR decreased by approximately 2.0%.
6
Underlying earnings for both the 31 December 2023 and 31 December 2022 periods exclude the amortisation (non-cash)
expense attributable to the LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets.
Underlying earnings for the 31 December 2023 period also exclude one-off M&A costs. Refer to Appendix 1 for details.
4
As we continue to invest for growth, the Group increased its shareholding in Transmedic to 90%.
Transmedic is one of the largest independent medical device distributors in Southeast Asia and has
long term relationships with global medical device OEMs, representing their products in hospitals
and other clinical settings across several therapeutic channels. EBOS acquired its original 51%
interest in Transmedic as part of the LifeHealthcare acquisition, which completed in May 2022. This
transaction reflects our confidence in the business and is consistent with our strategy to explore
further growth opportunities in Southeast Asia. Transmedic shareholder and Chairman, Mr TS Lee,
will remain our partner in Transmedic and EBOS will continue to benefit from his
extensive knowledge of the business and the region. Mr Lee will retain a 10% shareholding
in Transmedic and remain Chairman for approximately another two years. An option arrangement
has been entered into that will facilitate EBOS moving to 100% ownership at the conclusion of this
period. The purchase price for the additional 39% shareholding in Transmedic was approximately
SGD119 million (AUD135 million
7
).
In addition, the Healthcare segment continued to invest in its operational infrastructure to support
its growth, including two new contract logistics facilities in Auckland and Sydney, a new pharmacy
wholesaling centre in Auckland and additional medical consumables distribution centres in Auckland,
Sydney and Melbourne. These facilities will create additional capacity for future growth.
Animal Care
Animal Care ($m) 31 Dec 2023 31 Dec 2022 Growth
Revenue $286.2m $291.2m (1.7)%
Statutory EBITDA $47.2m $51.0m (7.5)%
Underlying EBITDA
8
$55.4m $51.0m 8.6%
Underlying EBITDA margin 19.3% 17.5% 180bp
Our Animal Care segment generated revenue of $286.2 million and Underlying EBITDA of $55.4
million, a decrease of 1.7% and an increase of 8.6% respectively on the prior corresponding period.
The Animal Care segment demonstrated strong resilience, as the specialty pet industry experiences a
shift towards larger national retailers. The strength of our brands and our longstanding relationships
with these retailers positions us well in the changing environment. Our wholesale business, Lyppard,
delivered a solid underlying performance, however overall sales revenue was negatively impacted by
a supplier commencing direct supply to vet clinics (following the acquisition of it by another large
direct supplier) and cat vaccine shortages.
Whilst our key brands, Black Hawk and Vitapet, continued to maintain share leadership in their
respective segments, we did experience softer demand for our portfolio of accessory products due to
the more challenging consumer environment.
7
Based on an SGD:AUD exchange rate of 0.8816.
8
Underlying earnings for the 31 December 2023 period excludes one-off M&A costs. Refer to Appendix 1 for details.
5
The recently acquired Superior business has performed in line with expectations with growth in both
dog roll products and bulk treats.
In line with our Animal Care growth strategy, several new product development launches have
commenced or are planned for FY24. These include the Black Hawk Healthy Benefits® range and the
relaunch and extension of the Black Hawk cat food range. Black Hawk Healthy Benefits®, the first
specific benefits line from Black Hawk, appeared on shelves in leading pet specialty retailers and vet
clinics in September 2023 and has had positive early in-market performance. The new Black Hawk cat
food range was specifically developed by cat nutritionists and vets and features premium ingredients
to support cats’ wellbeing and lifestyle.
Pet Care Kitchen, our pet food manufacturing facility continues to enhance our local supply chain
capabilities and provides a competitive advantage for the Black Hawk and Vitapet petfood ranges
through continuity of supply and new product launches.
The Underlying EBITDA margin improved again during the period reflecting the relative performance
of higher margin businesses and the successful mitigation of cost inflation.
Normalised Group Performance
As previously disclosed, we will no longer service the Chemist Warehouse Australia contract after 30
June 2024. To provide investors with more detail on the performance of our underlying business, we
have set out below the growth rates in H1 FY24 on an actual basis and normalised to exclude the
impact of the Chemist Warehouse Australia Contract and COVID-19 anti-viral wholesale sales.
Normalised H1 FY24 growth vs. pcp, excluding:
Underlying actual H1
FY24 growth vs. pcp
Chemist Warehouse
Australia contract
COVID-19 anti-viral
wholesale sales
Revenue 7.1%
6.9% 9.2%
Underlying EBITDA 8.3%
~ 10% ~ 10%
Underlying EBIT 8.5%
~ 10% ~ 10%
One-off Costs
The Group incurred one-off costs of $10.1 million in the first half primarily associated with a large
strategic acquisition that did not proceed. Refer to Appendix 1 for further details.
6
Cash Flow, Net Debt and Return on Capital Employed
The Group generated solid underlying operating cash flow of $115.6 million, reflecting strong
Underlying EBITDA, partially offset by finance costs, tax payments and net working capital
movements.
Return on Capital Employed (“ROCE”) of 15.1% is in line with June 2023 and ahead of December 2022
by approximately 70 bp. ROCE is in line with the Group’s target of 15%.
Net Debt : EBITDA ratio at 31 December 2023 was 2.06x (1.76x as at 31 December 2022) primarily
reflecting consideration paid for acquisitions completed in the period (Superior and the increased
shareholding in Transmedic).
Sustainability and Community
Resilience is integral to EBOS and is becoming increasingly important with the effects of climate
change being felt with increasing frequency and severity in the communities we serve. In times of
climate related crises our teams have responded readily to assist impacted communities across New
Zealand and Australia, working with government, military, rescue agencies and our transport
partners to ensure the ongoing reliable supply of medicines and related products.
As we have done since our inception in 1922, our focus is to serve the needs of customers and
consumers regardless of the circumstances. EBOS continues to assess, and where applicable, quantify
the nature and scale of climate-related risks in our value chain and the overall potential impact to our
business. EBOS will release its first Climate Statement later in calendar year 2024.
Recognising our responsibility to act, we are investing in energy efficiencies, renewable power and
low carbon technologies. In FY23, we achieved net zero Scope 1 emissions in New Zealand and
Australia using Australian Carbon Credit Units (ACCUs) to offset direct emissions from our facilities.
We have also completed the first phase of our 18.8MW solar array project, with the installation of a
500kW roof-mounted array in Parkes NSW, and preparations for the next phase are underway.
EBOS continues to work with community partners across Australia and New Zealand who are aligned
with our purpose ‘Advance opportunities to enrich lives’. The Group and our employees again
supported organisations including Ovarian Cancer Australia, BackTrack, LandSAR, FightMND, Cerebral
Palsy Alliance and others.
Further detail on our ESG Program can be found at www.ebosgroup.com/sustainability.
7
Board Update
Consistent with EBOS’ Board renewal process, independent directors Sarah Ottrey and Stuart
McGregor retired as directors effective 24 October 2023. The retirements were part of a carefully
considered succession process that has included the appointments of Mark Bloom and Julie Tay as
independent directors during the last 18 months. Ms Ottrey and Mr McGregor had been directors
since 2006 and 2013 respectively and made valuable contributions to EBOS during their tenure, a
period in which EBOS generated significant growth and shareholder value.
Interim Dividend
The Directors declared an interim dividend of NZ 57.0 cents per share, an increase of 7.5% on the prior
corresponding period. This implies a dividend payout ratio of 66.4%
9
on an underlying basis.
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 1 March 2024 and the dividend will be paid on 22 March 2024.
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 FY24 and is successfully managing
its EBITDA margin in the current environment.
January 2024 trading conditions were positive with the Underlying EBITDA growth rates, including
and excluding the Chemist Warehouse Australia contract, consistent with the levels recorded in the
first half.
The Group is confident that for the remainder of FY24 it will continue to generate organic earnings
growth across both Healthcare and Animal Care and pursue further bolt-on acquisitions.
We will continue to service the Chemist Warehouse Australia contract until its expiry date of 30 June
2024. Thereafter, we do not expect to generate revenue from this contract.
The Group expects to have capital expenditure in FY24 slightly above the FY23 level as we continue
to invest for growth and modernise our facilities, particularly our New Zealand Healthcare
operations.
EBOS’ balance sheet is strong and well positioned to pursue growth opportunities.
9
Dividend payout ratio is based on an underlying basis on a NZD:AUD average exchange rate of 0.925.
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/9pnv4awm
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
H1 FY24 Underlying earnings exclude the amortisation (non-cash) expense attributable to the
LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets and one-off
M&A costs primarily associated with a large strategic transaction which did not proceed.
H1 FY23 Underlying earnings exclude the amortisation (non-cash) expense attributable to the
LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets.
$m
EBITDA
EBIT
PBT
NPAT
EBITDA
EBIT
PBT
NPAT
Statutory result
303.1
236.7
192.0
136.2
289.2
226.0
192.6
132.2
LifeHealthcare PPA amortisation (non-cash)
-
13.1
13.1
9.2
-
13.5
13.5
9.4
M&A transaction costs
10.1
10.1
10.1
7.1
-
-
-
-
Total underlying earnings adjustments
10.1
23.2
23.2
16.2
-
13.5
13.5
9.4
Underlying result
313.2
259.9
215.1
152.4
289.2
239.5
206.1
141.6
H1 FY24
H1 FY23
---
INVESTOR
PRESENTATION
Interim Financial Results
Half year ended 31 December 2023
21 February 2024
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
(ROCE). Because they are not defined by GAAP or IFRS, EBOS’ calculation of these measures may differ from similarly titled measures
presented by other companies and they should not be considered in isolation from, or construed as an alternative to, other financial
measures determined in accordance with GAAP. Although EBOS believes they 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 2023.
EBOS and its businesses are subject to known and unknown risks, some of which are beyond the control of EBOS and/or may not be fully
mitigated. A summary of key financial and non-financial risks identified by EBOS can be found under ‘Risk Management’ at
https://www.ebosgroup.com/who-we-are/corporate-governance.This should not be considered an exhaustive list.
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 2023 period exclude M&A transaction costs and the amortisation (non-cash) expense
attributable to the LifeHealthcareacquisition purchase price accounting (PPA) of finite life intangible assets. 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.
GROUP
FINANCIAL
RESULTS
3
H1 FY24 SUMMARY RESULTS
4
Strong organic
earnings growth
Investing for growth –
acquisitions and capex
Leverage in-line with
target
ROCE in-line with
target
EBOS has achieved strong growth reflecting the benefits of its diversified portfolio
Notes:
1.Refer to page 30 for a reconciliation of Statutory to Underlying results.
2.Calculated in accordance with banking covenants and excludes IFRS 16 lease impacts.
Increased dividends to
shareholders
$mUnderlying
1
VarStatutoryVar
Revenue6,582.5
r
7.1%6,582.5
r
7.1%
EBITDA313.2
r
8.3%303.1
r
4.8%
EBIT259.9
r
8.5%236.7
r
4.7%
Net Profit After Tax152.4
r
7.6%136.2
r
3.0%
EPS (cents)79.5c
r
6.6%71.0c
r
2.1%
DPS (NZ cents)57.0c
r
7.5%
EBITDA margin4.76%
r
5bp
ROCE (%)15.1%
r
70bp
Net Debt : EBITDA (x)
2
2.06x
r
(0.30x)
KEY HIGHLIGHTS
5
Healthcare
EBITDA up 8.0%
1
•EBOS’ Healthcare segment benefitted from its leading market positions and had solid contributions from each of the
Community Pharmacy, TerryWhiteChemmart(TWC) and Institutional Healthcare businesses. Key highlights included:
oCommunity Pharmacy wholesale market share increase;
oTWC continued store expansion and sales growth; and
oDouble digit Institutional Healthcare revenue growth driven by increased hospital medicines sales, including
specialty medicines, and the performance of our medical technology business, driven by improved surgical
volumes.
•Particularly strong growth in Australia with Underlying EBITDA growth of 12.4%.
•Continued effective cost management in the current inflationary environment with an increase in the segment’s
Underlying EBITDA margin.
•Continued investment in operational infrastructure across Community Pharmacy, Institutional Healthcare and
Contract Logistics.
•Increased shareholding in Transmedic to 90% with an option arrangement that facilitates the Group moving to 100%
in approximately two years.
Animal Care
EBITDA up 8.6%
1
•EBOS’ Animal Care segment demonstrated strong resilience, as the specialty pet industry experiences a shift towards
larger national retailers. The strength of our brands and our longstanding relationships with these retailers positions
us well in the changing environment.
•The branded business continues to focus on its new product development pipeline, leveraging our in-house
manufacturing capabilities.
•Solid underlying performance from the wholesale business, however overall sales revenue was negatively impacted
by a supplier commencing direct supply to vet clinics (following the acquisition of it by another large direct supplier)
and cat vaccine shortages.
•The Superior Pet Food Co. (Superior) acquisition, completed in July 2023, has performed in-line with expectations.
Group
NPAT up 7.6%
1
•The Group continues to deliver strong normalised growth excluding the Chemist Warehouse Australia contract with
Underlying EBITDA growing approximately 10%, demonstrating the benefits of our diversification and multiple
growth levers.
•Cost management over the Group’s ~$1.0b annual cost base is an area of focus for management.
•Underlying operating cash flow of $115.6m reflects strong earnings and disciplined net working capital management.
•ROCE of 15.1% in-line with target.
Notes:
1.Growth rates are calculated based on Underlying EBITDA and Underlying NPAT (as applicable).
Continued strong earnings growth in Healthcare and Animal Care and investing for future growth
DIVISION AND SEGMENT PERFORMANCE
GOR bridge ($m)
Underlying EBITDA bridge ($m)
Both the Healthcare and Animal Care segments recorded strong earnings growth
6
H1 FY24
growth
vs. pcp
H1 FY24
growth
vs. pcp
(0. )
.
1 .
0.
.
.0 . . .
H1 F
EBIT A
HealthcareAnimal
Care
CorporateH1 F
EBIT A
1
.
1
.
.
.
1
.
(
1
.
)
.
.
0
.
0
.
.
H
1
F
GOR
Community
Pharmacy
Inst
.
Healthcare
Contract
Logistics
Animal
Care
H
1
F
GOR
GROUP PERFORMANCE
•Revenue of $6,582.5m, an increase of $436.8m or 7.1%:
oHealthcare up 7.5%;
oAnimal Care down 1.7%.
•Underlying EBITDA of $313.2m, an increase of $24.0m or 8.3%:
oHealthcare up 8.0%;
oAnimal Care up 8.6%.
•Underlying EBITDA margin improved to 4.76%(from 4.71%).
•Net Finance Costs increased to $44.8m due to higher net debt
from funding acquisitions, a higher interest rate environment
and an in increase in IFRS 16 interest expense associated with
leases for new sites.
•Underlying NPAT and EPS increased by 7.6%and 6.6%,
respectively.
•H1 FY24 Underlying EBITDA excludes one-off costs of $10.1m
primarily associated with a large strategic transaction which did
not proceed.
•Increase in Net Debt : EBITDA ratio reflects the acquisition of
Superior and the increased shareholding in the Transmedic
business to 90%.
7
Notes:
1.Refer to page 30 for a reconciliation of Statutory to Underlying results.
$mH1 FY24H1 FY23VarVar%
Underlying Results
1
Revenue6,582.56,145.7436.87.1%
GOR813.2778.335.04.5%
EBITDA313.2289.224.08.3%
Depreciation & Amortisation53.349.7(3.6)(7.2%)
EBIT259.9239.520.48.5%
Net Finance Costs44.833.4(11.4)(34.1%)
Profit Before Tax215.1206.19.14.4%
Net Profit After Tax152.4141.610.87.6%
Earnings per share -cps79.5c74.5c5.0c6.6%
EBITDA margin4.76%4.71%5bp
Net Debt1,088.2837.5
Net Debt : EBITDA2.06x1.76x
Statutory Results
Revenue6,582.56,145.7436.87.1%
EBITDA303.1289.213.94.8%
EBIT236.7226.010.74.7%
Profit Before Tax192.0192.6(0.7)(0.3%)
Net Profit After Tax136.2132.24.03.0%
Earnings per share -cps71.0c69.6c1.4c2.1%
GROUP PERFORMANCE (CONT.)
8
•As previously disclosed, we will no longer service the Chemist Warehouse Australia contract after 30 June 2024.
•H1 FY24 growth compared to the prior corresponding period was as follows:
Normalised H1 FY24 growth vs.pcp, excluding:
Underlying actual
H1 FY24 growth vs.pcp
Chemist Warehouse
Australia contract
COVID-19 anti-viral
wholesale sales
Revenue .1 . .
Underlying EBIT A . ~10 ~10
Underlying EBIT . ~10 ~10
The Group generated strong Underlying EBITDA growth of approximately 10% when normalised to exclude
the Chemist Warehouse Australia contract or wholesale sales of COVID-19 anti-viral products
LONG TERM TRACK RECORD
9
Return on capital employed (%)
Underlying EBITDA($m)
Summary
✓Double-digit earnings growth.
✓Dividend growth and stable payout ratio.
✓Disciplined focus on working capital
management and cash flow generation.
✓ROCE in-line with target.
✓Strong balance sheet; 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
15.6% CAGR
1
11.2% CAGR
1
In-line with15% targetStrong balance sheet
Notes:
1.CAGR calculation is inclusive of FY15-FY23.
2.All amounts are presented inclusive of IFRS 16 Leases except for periods FY19 and prior.
10.7% CAGR
1
1
1
0
0
F
1
F
1
F
1
F
1
F
1
F
0
F
1
F
F
H
1
F
0
101
11
1 0
1
F
1
F
1
F
1
F
1
F
1
F
0
F
1
F
F
H
1
F
1 .
1 .
1 .1
1 .
1 .
1 .1
1 .0
1 .
1 .1 1 .1
F 1 F 1 F 1 F 1 F 1 F 0F 1F F H1
F
1. x
1.1 x
1. 0x
1. x
1. 1x
1.11x
0. x
1. x
1. x
.0 x
F 1 F 1 F 1 F 1 F 1 F 0F 1F F H1
F
110
F
1
F
1
F
1
F
1
F
1
F
0
F
1
F
F
H
1
F
1H metric
FY metric
INVESTING FOR GROWTH –TRANSMEDIC
10
Notes
1. Based on an SGD:AUD exchange rate of 0.8816.
Consistent with our strategy of investing for growth, EBOS has increased its shareholding in Transmedic to
90%
Transmedic shareholding increased from 51% to 90%
•Transmedic is one of the largest independent medical device
distributors in Southeast Asia with a presence in seven countries, being
Singapore, Indonesia, Malaysia, Philippines, Thailand, Hong Kong and
Vietnam.
•Transmedic has long term relationships with global medical device
OEMs, representing their products in hospitals and other clinical
settings across several therapeutic channels, including spine,
orthopaedics, cardiology, ophthalmology and radiation therapy.
•EBOS acquired its original 51% interest in Transmedic as part of the
LifeHealthcare acquisition, which completed in May 2022.
•This transaction reflects our confidence in the business and is
consistent with our strategy to explore further growth opportunities in
Southeast Asia.
•Transmedic’s shareholder and Chairman, Mr TS Lee, will remain our
partner in Transmedic and EBOS will continue to benefit from his
extensive knowledge of the business and the region.
•Mr Lee will retain a 10% shareholding in Transmedic and remain
Chairman for approximately two more years. An option arrangement
has been entered into that will facilitate EBOS moving to 100%
ownership at the conclusion of this period.
•The purchase price for the additional 39% shareholding in Transmedic
was approximately SGD119 million (AUD135 million
1
) and was funded
from existing debt facilities.
EBOS MedTech’s Asia Pacific presence
provides a unique offering to global OEMs
looking to access the region
•9 countries
•39 offices
•400+ OEM relationships
•4,000+ surgeon and clinician relationships
•1,100+ employees
INVESTING FOR GROWTH –DISTRIBUTION NETWORK
EBOS continues to invest in operational infrastructure to support our growth
InvestmentLocationStatusDivision
New contract logistics
distribution centres
Auckland
Completed 2023
(fully operational)
Contract Logistics
Sydney
Completed 2023 (expected to be
fully operational 2H FY24)
New medical consumables
distribution centres
Sydney
In progress (expected to be fully
operational 2H FY24)
Institutional
Healthcare
Melbourne
In progress (expected to be fully
operational 1H FY25)
Auckland
In progress (completion expected in
2025)
New pharmaceutical
wholesale distribution
centre
Auckland
In progress (completion expected in
1H FY25)
Community
Pharmacy
11
NEAR-TERM GROWTH STRATEGY
12
We are making strong progress on the key focus areas of our near-term strategy to increase earnings
Base business
growth
New Community
Pharmacy revenue
opportunities
Cost reduction
initiatives
M&A
EBOS’ earnings
excluding Chemist
Warehouse Australia
continue to grow
strongly, reflecting our
diverse portfolio
Positive traction with
new potential
customers over H1
FY24 and continued
focus given changing
industry dynamics
Cost reduction
initiatives have
commenced with
respect to the Group’s
~$1bn cost base
Superior Pet Food Co.
and Transmedic
transactions completed
in H1 FY24.
Pipeline remains active
SUSTAINABILITY SNAPSHOT
13
Notes
1. Achievement of net zero Scope 1 emissions relates to our Australian and New Zealand operations.
14
HEALTHCARE
RESULTS
HEALTHCARE SEGMENT
15
•Healthcare’s strong performance was driven by our leading
market positions, organic growth and continued focus on
margin management.
•Solid performances across our Community Pharmacy, TWC and
Institutional Healthcare businesses.
•Our Australian Healthcare business grew Underlying EBITDA by
12.4%. Southeast Asia EBITDA also continued to grow strongly,
up 7.4%, driven by our Transmedic business, however New
Zealand EBITDA was impacted by a decline in non-recurring
COVID-19 activity within our Contract Logistics business.
•Despite cost pressures, we have successfully maintained
Underlying EBITDA margins.
Underlying EBITDA ($m and %)
The Healthcare segment delivered positive earnings growth notwithstanding the current macroeconomic
environment
$m
H1 FY24
H1 FY23
Var
Var%
Revenue
6,296.3
5,854.6
441.7
7.5%
GOR
719.0
687.3
31.7
4.6%
Underlying EBITDA
275.5
255.0
20.5
8.0%
GOR%
11.4%
11.7%
-30bp
Underlying EBITDA%
4.38%
4.35%
3bp
Australia
Revenue
5,043.8
4,755.8
288.0
6.1%
Underlying EBITDA
228.6
203.4
25.3
12.4%
Underlying EBITDA%
4.53%
4.28%
25bp
New Zealand & Southeast Asia
Revenue
1,252.5
1,098.7
153.8
14.0%
EBITDA
46.8
51.6
(4.8)
(9.2%)
EBITDA%
3.74%
4.70%
-96bp
1 .1
1 1.
1 .
.0
.
.
.
.
. .
H1 F 0H1 F 1H1 F H1 F H1 F
Underlying EBIT AUnderlying EBIT A
Notes:
1. GOR % excluding Contract Logistics New Zealand is 11.5% (11.6% in H1 FY23)
1
•Revenue increased by $181.0m (4.9%) and GOR increased by
$15.9m (4.9%), benefitting from:
oStrong performance from our community pharmacy retail
brands, including TWC; and
oIncreased wholesale market share.
•Excluding revenue from COVID-19 related anti-viral
medications, Community Pharmacy delivered normalised
revenue growth of 8.3%.
•As expected, theincrease to the CSO funding pool
broadlyoffsetthe earningsimpact of the 60 day dispensing
policy change in H1 FY24.
•Our TWC franchise network has continued its store expansion
and sales growth, further strengthening its position as
Australia’s largest health advice-oriented community
pharmacy network.
•Discussions with the Department of Health have commenced
regarding the 8
th
Community Pharmacy Agreement.
COMMUNITY PHARMACY
16
Revenue and GOR ($m)
$mH1 FY24H1 FY23VarVar%
Revenue3,912.43,731.4181.04.9%
GOR339.9324.015.94.9%
GOR%8.69%8.68%1bp
,
0
,
,
1
,
1
,
1
1
0
0
H
1
F
0
H
1
F
1
H
1
F
H
1
F
H
1
F
Revenue
GOR
INSTITUTIONAL HEALTHCARE
•Institutional Healthcare revenue increased by $205.8m (11.7%)
and GOR increased by $17.4m (6.0%) largely due to growth in
SymbionHospitals and our Medical Technology businesses.
•SymbionHospitals’ revenue grew by approximately 1
predominantly due to sales of high value specialty medicines.
•Our Medical Technology division delivered first half revenue
growth of 10.2%, driven by increasing surgical volumes,
particularly within the implant channels.
•EBOS increased its stake in Transmedic to 90% providing the
Group greater exposure to future growth in Southeast Asia.
•Medical consumables contribution was lower due to the
unwind of PPE and other COVID-19 related activity.
•GOR margin decreased to 15.5%due to sales mix with stronger
growth from lower GOR margin businesses.
Revenue and GOR ($m)
17
$mH1 FY24H1 FY23VarVar%
Revenue1,965.81,760.0205.811.7%
GOR304.4287.117.46.0%
GOR%15.5%16.3%-80bp
1
,
1
,
1
1
,
1
,
0
1
,
10
1
1
0
H
1
F
0
H
1
F
1
H
1
F
H
1
F
H
1
F
Revenue
GOR
New medical consumables DC in Sydney
CONTRACT LOGISTICS
•Contract Logistics GOR decreasedby $1.5m(-2.0%):
oAustralia grew through new and existing principals,
including the benefit from Government initiatives to
improve the depth of medicines inventory cover onshore.
oNew Zealand was impacted by a reduction in demand for
the storage and servicing of COVID-19 related products
such as protective equipment. This was partially offset by
strong growth in the base business.
•Our recently completed facility in Sydney, NSW will
accommodate ongoing growth in the business.
GOR ($m)
18
$m
H1 FY24
H1 FY23
Var
Var%
GOR
1
74.7
76.2
(1.5)
(2.0%)
Notes:
1.GOR is the primary financial performance metric for Contract Logistics. Sales are predominately on a consignment basis and therefore Revenue and
GOR margin (%) are less relevant metrics for this division. For reference, revenue was $523.9m and $459.3m in H1 FY24 and H1 FY23, respectively.
Recently completed DC in Sydney
1
H
1
F
0
H
1
F
1
H
1
F
H
1
F
H
1
F
GOR
19
ANIMAL
CARE
RESULTS
ANIMAL CARE SEGMENT
•The Animal Care segment demonstrated strong resilience, as the
specialty pet industry experiences a shift towards larger national
retailers. The strength of our brands and our longstanding
relationships with these retailers positions us well in the changing
environment.
•Demonstrating the continued strength of our brands, Black Hawk
and Vitapetcontinued to maintain share leadership in their
respective segments.
•The recently acquired Superior business has performed in-line
with expectations with growth in both dog roll products and bulk
treats.
•The branded business experienced softer demand for our
portfolio of accessory products due to the more challenging
consumer environment.
•Pet Care Kitchen, our pet food manufacturing facility continues to
enhance our local supply chain capabilities and provides a
competitive advantage for the Back Hawk and Vitapetpetfood
ranges through continuity of supply and new product launches.
•Underlying EBITDA margin improved again reflecting relative
performance of higher margin businesses and the successful
mitigation of cost inflation.
Underlying EBITDA ($m and %)
20
$m
H1 FY24
H1 FY23
Var
Var%
Revenue
286.2
291.2
(5.0)
(1.7%)
- Branded Revenue
155.7
150.3
5.5
3.6%
- Wholesale Revenue
130.5
140.9
(10.4)
(7.4%)
GOR
94.2
91.0
3.3
3.6%
Underlying EBITDA
55.4
51.0
4.4
8.6%
GOR%
32.9%
31.2%
170bp
Underlying EBITDA%
19.3%
17.5%
180bp
.
.
.
1.0
.
1 .
1 .
1 .1
1 .
1 .
H1 F 0H1 F 1H1 F H1 F H1 F
Underlying EBIT AUnderlying EBIT A
The Animal Care segment demonstrated strong resilience with Underlying EBITDA growth driven through the
performance of higher margin businesses and contribution from the Superior acquisition
Businesses
H1 FY24 Sales
Growth
Salesdrivers
Branded
1
Black Hawk
3.6%
•Resilient performance from our branded businesses, Black Hawk and
Vitapetcontinued to maintain share leadership in their respective
segments.
•Investment in marketing to drive increased brand awareness and retail
support across brands.
•Slower category growth in the first half for treats and other
discretionary items.
•The recently acquired Superior business has performed in line with
expectations under EBOS ownership, with growth in dog roll products
and bulk treats.
•New product development initiatives are on track and provide
opportunities for growth.
Vitapet
Superior Pet
Food Co.
Wholesale
Lyppard-7.4%
•Solid underlying performance from the wholesale business, however
overall sales revenue was negatively impacted by a supplier
commencing direct supply to vet clinics (following the acquisition of it
by another large direct supplier) and cat vaccine shortages.
PRODUCT AND BRAND UPDATE
Demonstrating the continued strength of our brands, Black Hawk and Vitapetcontinued to maintain share
leadership in their respective segments
21
Notes:
1.Branded revenue includes accessories and other products sold under other brand names.
NEW PRODUCT DEVELOPMENT UPDATE
Consistent with our Animal Care growth strategy, several new product development launches have
commenced or are planned for FY24 including our Black Hawk Healthy Benefits product range and the
relaunch and extension of our Black Hawk cat food range
22
•Black Hawk Healthy Benefits® range is the first specific
benefits line from Black Hawk
•These specially formulated diets are focused on supporting
the health of dogs with specific needs (weight management,
dental, joints & muscle, sensitive skin & gut)
•Early in-market performance has been positive, with
distribution building in leading pet specialty retailers and
vets in Australia and New Zealand since appearing on
shelves in September2023
•Leveraging Pet Care Kitchen manufacturing capabilities
Our focus on NPD supports our Animal Care strategy by growing our leading brands through innovation and
leveraging our pet food manufacturing facility in Parkes, NSW
Black Hawk Healthy Benefits: Pet Specialty and Vet Channels
•Black Hawk recently relaunched and extended the Black
Hawk Cat range
•Specifically developed for cats, the new Black Hawk Cat
Food range features premium ingredients, and includes wet
and dry products
•Developed by cat nutritionists and vets, with carefully
selected ingredients to support cats’ wellbeing and lifestyle
•New products available in Australia from February 2024
Black Hawk Cat Food Range Extension
23
FINANCIAL
INFORMATION
AND OUTLOOK
CASH FLOW
24
•Solid Underlying Cash from Operating Activities of $115.6m, reflecting strong Underlying EBITDA, partially offset by finance costs, tax
payments and net working capital movements.
•The reduction in Underlying Operating Cash Flows, below last year by $45.5m(-28.3%),is predominantly attributable to timing of net
working capital movements (seasonality).
•Capital expenditure is higher primarily due to the investment in operational infrastructure to support ongoing growth.
Underlying Cash from Operating
Activities ($m)
1
Notes:
1.Underlying Free Cash Flow excludes one-off payments for M&A costs.
$m
H1 FY24
H1 FY23
Var$
Var%
Underlying EBITDA
313.2
289.2
24.0
8.3%
Interest paid
(44.8)
(33.4)
(11.4)
Tax (paid)
(46.5)
(78.5)
32.0
Net working capital and other
movements
(106.4)
(16.2)
(90.2)
Underlying Cash from
Operating Activities
115.6
161.1
(45.5)
(28.3%)
Capital expenditure
(66.4)
(35.4)
(31.0)
Underlying Free Cash Flow
49.2
125.7
(76.5)
(60.9%)
One-off items
1
(10.1)
-
(10.1)
Reported Free Cash Flow
39.1
125.7
(86.6)
(68.9%)
.
100.
11 .
1 1.1
11 .
1 .
01.
1 .
.
F 0F 1F F F
H1H
WORKING CAPITAL AND ROCE
25
•Working capital management continues to be a key focus of
EBOS.
•Average cash conversion days of 17 have remained consistent
with prior periods.
•The increase in net working capital from the prior corresponding
period reflects an investment in working capital to support sales
growth of 7.1% and the seasonally higher investment required
over the holiday period.
Working Capital
•Return on Capital Employed (ROCE) of 15.1%at December
2023 is in-line with June 2023 and ahead of December 2022
by approximately 70bp.
•ROCE is in-line with the Group’s target of 1 .
Return on Capital Employed (ROCE)
Notes:
1.H1 FY23 Net Working Capital has been updated to include fair value adjustments resulting from the LifeHealthcare acquisition purchase price
accounting (“PPA”).
$m
H1 FY24
FY23
H1 FY23
1
Net Working Capital
Trade receivables
1,416.3
1,383.2
1,394.1
Inventory
1,334.3
1,234.2
1,190.2
Trade payables/other
(2,277.5)
(2,263.4)
(2,182.7)
Total
473.0
354.1
401.6
Cash conversion days
17
17
17
1
.
1
.
1
1
.
1
H
1
F
F
H
1
F
NET DEBT AND MATURITY PROFILE
•Net Debt of $1,088matDecember 2023, with Net Debt : EBITDA ratio of 2.06x.
•Increase in the leverage ratio reflects consideration paid for acquisitions completed in the period (Superior and increased shareholding
in Transmedic).
•As at 1 ecember 0 , EBOS’ weighted average debt maturity is .1 years with no maturities until H F .
Net Debt and Net Debt : EBITDA ratio
1
Cash and Debt Maturity Profile
26
Notes:
1.Calculated in accordance with banking covenants and excludes IFRS 16 lease impacts.
0
0
1
,
0
1
.
x
1
.
x
1
.
x
1
.
x
.
0
x
ec
1
un
ec
un
ec
et ebt
H
1
et ebt
:
EBIT A Ratio
H
1
0
1
1 0
1
,
01
00
1 1
Cash on
Hand
F
F
F
F
F
rawn Amount
Committed and available facilities
EARNINGS AND DIVIDENDS PER SHARE
27
•Underlying EPS of 79.5cents representing growth of 6.6%.
•Interim dividend of NZ57.0 centsper share declared (imputed to 25%
1
and franked to 100% for New Zealand and Australian tax
resident shareholders, respectively) representing growth of 7.5%.
•Dividend payout ratio of 66.4%on an underlying basis
2
.
•EBOS reiterates its dividend policy of declaring dividends representing between 60% to 80% of NPAT.
•The Group’s ividend Reinvestment Plan ( RP) will be operational for the upcoming interim dividend. Shareholders can elect totake
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 an underlying basis on a NZD:AUD average exchange rate of 0.925.
1.
.
.
.
.
.
.
.0
.
F 0F 1F F H1 F
H1H
.
.
.0
.0
.0
0.0
.0
.0
.0
F 0F 1F F H1 F
H1H
OUTLOOK
28
•EBOS is pleased with the strong earnings growth in the first half of FY24 and is successfully managing its EBITDA margin in the
current environment.
•January 2024 trading conditions were positive with the Underlying EBITDA growth rates, including and excluding the Chemist
Warehouse Australia contract, consistent with the levels recorded in the first half.
•The Group is confident that for the remainder of FY24 it will continue to generate organic earnings growth across both its
Healthcare and Animal Care segments and pursue further bolt-on acquisitions.
•We will continue to service the Chemist Warehouse Australia contract until its expiry date of 30 June 2024. Thereafter, we donot
expect to generate revenue from this contract.
•The Group expects to have capital expenditure in FY24 slightly above the FY23 level as we continue to invest for growth and
modernise our facilities, particularly our New Zealand Healthcare operations.
•EBOS’ balance sheet is strong and we are well positioned to pursue growth opportunities.
29
SUPPORTING
INFORMATION
RECONCILIATION OF STATUTORY TO UNDERLYING
RESULTS
30
•H1 FY24 Underlying earnings exclude the amortisation (non-cash) expense attributable to the LifeHealthcare acquisition purchase price
accounting (PPA) of finite life intangible assets and one-off M&A costs primarily associated with a large strategic transaction which did not
proceed.
•H1 FY23 Underlying earnings exclude the amortisation (non-cash) expense attributable to the LifeHealthcare acquisition purchase price
accounting (PPA) of finite life intangible assets.
$mEBITDAEBITPBTNPATEBITDAEBITPBTNPAT
Statutory result303.1236.7192.0136.2289.2226.0192.6132.2
LifeHealthcare PPA amortisation (non-cash)- 13.113.19.2- 13.513.59.4
M&A transaction costs10.110.110.17.1- - - -
Total underlying earnings adjustments10.123.223.216.2- 13.513.59.4
Underlying result313.2259.9215.1152.4289.2239.5206.1141.6
H1 FY24H1 FY23
SEGMENT EBITDA AND EBIT RECONCILIATION
31
$mH1 FY24H1 FY23Var$Var%H1 FY24H1 FY23Var$Var%
Healthcare
Statutory273.6255.018.67.3%213.2197.715.57.8%
add LifeHealthcare PPA amortisation (non-cash) - - - 13.113.5(0.4)
add Net transaction costs incurred on M&A 1.9- 1.91.9- 1.9
Total underlying earnings adjustments1.9- 1.915.013.51.5
Underlying275.5255.020.58.0%228.2211.217.08.1%
Animal Care
Statutory47.251.0(3.8)(7.5%)41.845.6(3.8)(8.4%)
add Transaction costs incurred on M&A 8.2- 8.28.2- 8.2
Underlying55.451.04.48.6%50.045.64.49.5%
Corporate
Statutory(17.7)(16.7)(0.9)(5.5%)(18.2)(17.3)(0.9)(5.4%)
EBOS Group
Statutory303.1289.213.94.8%236.7226.010.74.7%
add LifeHealthcare PPA amortisation (non-cash) - - - 13.113.5(0.4)
add Net transaction costs incurred on M&A 10.1- 10.110.1- 10.1
Total underlying earnings adjustments10.1- 10.123.213.59.7
Underlying313.2289.224.08.3%259.9239.520.48.5%
EBITDAEBIT
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 items
The net of transaction costs incurred on M&A and the amortisation (non-cash) expense attributable to the LifeHealthcareacquisition
purchase price accounting of finite life intangible assets.
Earnings per share (EPS)
Net Profit after tax divided by the weighted average number of shares on issue during the periodin accordance with IAS ‘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 one-off items.
Underlying Free Cash FlowFree cash flow excluding one-off payments for one-off items.
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 and excludes IFRS16 lease impacts.
Cash Conversion DaysBased upon average monthly closing NWC balances for the financial period.
Return on Capital
Employed (ROCE)
Underlyingearnings before interest, tax and amortisationof finite life intangibles for 12 months (EBITA) divided by closing capital
employed(excluding IFRS16 Leases and including a pro-rata adjustmentforstrategicinvestments).
CAGRCompound Annual Growth Rate
IFRSInternational FinancialReporting Standards.
PPAPurchase Price Accounting
GLOSSARY OF TERMS AND MEASURES
32
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 2023
EBOS GROUP LIMITED
INTERIM REPORT 2024
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 2024
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
Revenue 6,582,488 6,145,722 12,237,401
Profit before depreciation, amortisation, net finance costs and tax
expense (EBITDA)
303,067
289,180
568,776
Profit before net finance costs and tax expense (EBIT) 236,724 226,018 443,992
Profit before tax expense 191,958 192,627 373,431
Profit for the period 137,256 137,591 263,445
Profit for the period attributable to owners of the Company 136,175 132,198 253,373
Equity attributable to owners of the Company 2,365,227 2,374,403 2,434,392
Earnings per share 71.0c 69.6c 132.9c
Interim dividend per share (New Zealand dollars) 57.0c 53.0c 53.0c
SHAREHOLDER CALENDAR
Interim dividend record date 1 March 2024
Interim dividend payable 22 March 2024
Release of 2024 full year results 21 August 2024
Annual Meeting 23 October 2024
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’) on pages 3 to 18 which comprise the condensed consolidated balance sheet as at 31 December 2023, 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 notes to the
interim financial statements, including material accounting policy information.
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 2023 and its financial performance and cash
flows for the six month 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 other assurance services and 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 Group 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 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 Hoshek, Partner
for Deloitte Limited
Christchurch, New Zealand
20 February 2024
3
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2023
Notes
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
Revenue
2(a) 6,582,488 6,145,722 12,237,401
Income from associates
6,534 5,428 12,369
Profit before depreciation, amortisation, net finance
costs and tax expense (EBITDA)
303,067
289,180
568,776
Depreciation
2(b) (48,050) (43,437) (86,246)
Amortisation of finite life intangibles
2(b) (18,293) (19,725) (38,538)
Profit before net finance costs and tax expense (EBIT)
236,724 226,018 443,992
Finance income
3,952 4,257 8,542
Finance costs – borrowings
(41,118) (32,373) (67,808)
Finance costs – leases
(7,600) (5,275) (11,295)
Profit before tax expense
191,958 192,627 373,431
Income tax expense
(54,702) (55,036) (109,986)
Profit for the period
137,256 137,591 263,445
Profit for the period attributable to:
Owners of the Company
136,175 132,198 253,373
Non-controlling interests
1,081 5,393 10,072
137,256 137,591 263,445
Earnings per share
Basic (cents per share)
71.0 69.6 132.9
Diluted (cents per share)
71.0 69.6 132.9
Notes to the financial statements are included on page 10 to 18.
4
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2023
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
Profit for the period
137,256 137,591 263,445
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Movement in cash flow hedge reserve
(10,628) 1,599 1,114
Related income tax
3,300 32 (384)
Movement in foreign currency translation reserve
1,398 17,767 5,941
(5,930) 19,398 6,671
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments fair valued through other
comprehensive income
(938) 1,258 1,016
Total comprehensive income net of tax
130,388 158,247 271,132
Total comprehensive income for the period is attributable to:
Owners of the Company
129,449 152,744 260,908
Non-controlling interests
939 5,503 10,224
130,388 158,247 271,132
Notes to the financial statements are included on page 10 to 18.
5
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2023
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Fair value
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
Notes to the financial statements are included on page 10 to 18.
6
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2023
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Fair value
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 2023 (audited):
Opening balance 1,810,562 11,228 (37,100) 481,666 (6,002) 4,458 (113,256) 2,151,556
Profit for the period - - - 253,373 - - 10,072 263,445
Other comprehensive income for the period, net of tax - - 5,789 -
1,016
730 152 7,687
Payment of dividends 4 - - - (175,611) - - - (175,611)
Movement in option over non-controlling interests - - - -
-
- (28,000) (28,000)
Share-based payments - 4,982 - -
-
- - 4,982
Dividends reinvested 3 77,981 - - - - - - 77,981
Share placement costs 3 (285) - - -
-
- - (285)
Tax on deductible issue costs 3 85 - - - - - - 85
Employee share plan shares issued 3 1,681 - - - - - - 1,681
Employee share issue costs 3 (161) - - - - - - (161)
Balance at 30 June 2023 1,889,863 16,210 (31,311) 559,428 (4,986) 5,188 (131,032) 2,303,360
Notes to the financial statements are included on page 10 to 18.
7
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2023
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Fair value
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 2023
(unaudited):
Opening balance 1,889,863 16,210 (31,311) 559,428 (4,986) 5,188 (131,032) 2,303,360
Profit for the period - - - 136,175 - - 1,081 137,256
Other comprehensive income for the period,
net of tax -
- 1,540 - (938)
(7,328)
(142) (6,868)
Payment of dividends 4 - - - (100,879) - - - (100,879)
Movement in option over non-controlling
interests -
- - - - -
(2,626) (2,626)
Transfer of non-controlling interests - - - 32,768 - - (32,768) -
Partial derecognition of option over non-
controlling interests 10 -
-
- (134,626) -
-
134,626 -
Share-based payments
-
3,265
- -
-
-
-
3,265
Employee share plan shares issued 3 932 - - - - - - 932
Employee share issue costs 3 (74) - - - - - - (74)
Balance at 31 December 2023 1,890,721 19,475 (29,771) 492,866
(5,924)
(2,140) (30,861) 2,334,366
Notes to the financial statements are included on page 10 to 18.
8
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2023
Notes
31 Dec 23
A$’000
(unaudited)
31 Dec 22
A$’000
(unaudited)
30 Jun 23
A$’000
(audited)
Current assets
Cash and cash equivalents 365,313 222,922 211,886
Trade and other receivables
1,527,086
1,509,863
1,497,526
Prepayments 51,394 46,122 40,474
Inventories 1,334,278 1,190,188 1,234,237
Current tax refundable 3,509 4,757 5,918
Other financial assets – derivatives 8 4,701 20,044 16,836
Total current assets 3,286,281 2,993,896 3,006,877
Non-current assets
Property, plant and equipment 343,514 305,409 329,777
Capital work in progress
81,534
34,378
49,110
Prepayments 267 1,659 2,011
Deferred tax assets 225,564 220,858 206,586
Goodwill 10 2,041,543 1,976,141 1,976,368
Indefinite life intangibles 193,460 171,961 171,108
Finite life intangibles
331,233
355,136
344,156
Right of use assets 356,447 291,375 281,788
Investment in associates 51,905 46,185 53,650
Other financial assets 23,972 15,937 15,602
Total non-current assets
3,649,439
3,419,039
3,430,156
Total assets 6,935,720 6,412,935 6,437,033
Current liabilities
Trade and other payables 2,340,387 2,241,953 2,314,371
Bank loans
7
171,729 30,942 42,124
Lease liabilities 55,830 48,548 50,142
Current tax payable 14,213 25,776 6,370
Employee benefits 70,259 68,559 80,046
Other financial liabilities – derivatives
8, 10
493 137,611 165,000
Total current liabilities 2,652,911 2,553,389 2,658,053
Non-current liabilities
Bank loans 7 1,281,823 1,029,496 936,351
Lease liabilities
325,897
263,562
254,326
Trade and other payables 20,164 25,578 15,383
Deferred tax liabilities 278,343 264,099 259,245
Employee benefits 9,216 10,161 10,315
Other financial liabilities – derivatives
8, 10
33,000 - -
Total non-current liabilities 1,948,443 1,592,896 1,475,620
Total liabilities 4,601,354 4,146,285 4,133,673
Net assets
2,334,366 2,266,650 2,303,360
Equity
Share capital 3 1,890,721 1,850,355 1,889,863
Share based payments reserve 19,475 11,283 16,210
Foreign currency translation reserve
(29,771) (19,443) (31,311)
Retained earnings 492,866 530,863 559,428
Equity instruments fair valued through other comprehensive income (5,924) (4,744) (4,986)
Cash flow hedge reserve (2,140) 6,089 5,188
Equity attributable to owners of the company
2,365,227 2,374,403 2,434,392
Non-controlling interests (30,861) (107,753) (131,032)
Total equity 2,334,366 2,266,650 2,303,360
Notes to the financial statements are included on page 10 to 18.
9
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2023
Notes
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
Cash flows from operating activities
Receipts from sale of goods and services
6,559,650 6,021,329 12,124,627
Interest received
3,952 4,257 8,542
Dividends received from associates
8,731 8,824 11,579
Payments for purchase of goods and services
(6,371,675) (5,757,173) (11,529,888)
Taxes paid
(46,477) (78,524) (144,381)
Interest paid
(48,718) (37,648) (79,103)
Net cash inflow from operating activities
5 105,463 161,065 391,376
Cash flows from investing activities
Sale of property, plant and equipment
218 249 533
Purchase of property, plant and equipment
(32,042) (24,787) (54,497)
Payments for capital work in progress
(32,229) (9,933) (39,552)
Payments for intangible assets
(2,333) (891) (4,303)
Acquisition of subsidiaries
10 (223,559) (36,928) (49,658)
Investment in associates
- (2,182) (6,214)
Investment in other financial assets
(9,314) (574) (574)
Net cash outflow from investing activities
(299,259) (75,046) (154,265)
Cash flows from financing activities
Proceeds from issue of shares
3 858 39,793 79,216
Proceeds from borrowings
475,319 6,205 23,941
Repayment of borrowings
- (325,575) (425,575)
Repayment of lease liabilities
(28,375) (23,951) (48,983)
Dividends paid to equity holders of parent
(101,692) (81,565) (175,730)
Net cash inflow/(outflow) from financing activities
346,110 (385,093) (547,131)
Net increase/(decrease) in cash held
152,314 (299,074) (310,020)
Effect of exchange rate fluctuations on cash held
1,113 4,680 4,590
Net cash and cash equivalents at beginning of period
211,886 517,316 517,316
Net cash and cash equivalents at end of period
365,313 222,922 211,886
Notes to the financial statements are included on page 10 to 18.
10
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2023
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 2023.
The Condensed Consolidated Balance Sheet as at 31 December 2022 presented within this report has been updated to reflect the
final fair value adjustments attributable to the acquisition of LifeHealthcare Group. There is no impact to the 31 December 2022
Statement of Comprehensive Income. Please refer to Note B2 of the Group’s Annual Report for the year ended 30 June 2023 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 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
(a)
Revenue
Community Pharmacy
3,912,432
3,731,388
7,312,355
Institutional Healthcare
1,965,819 1,759,978 3,590,454
Contract Logistics Services
72,153 71,902 144,086
Contract Logistics Sales
451,774 387,360 820,549
Interdivisional eliminations
(105,872) (96,067) (190,887)
Healthcare
6,296,306 5,854,561 11,676,557
Animal Care
286,182 291,161 560,844
6,582,488 6,145,722 12,237,401
11
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2023
2. PROFIT FROM OPERATIONS (Continued)
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’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)
(10,100)
-
(13,234)
Cost of sales
(5,766,378) (5,365,508) (10,676,268)
Write-down of inventory
(2,874) (1,943) (13,671)
Impairment loss on trade and other receivables
(493) (600) (1,096)
Depreciation of property, plant and equipment
(16,395)
(17,297)
(32,454)
Depreciation on right of use assets
(31,655) (26,140) (53,792)
Amortisation of finite life intangibles attributable to fair value
adjustment for the LifeHealthcare Group acquisition
(13,090)
(13,469)
(26,938)
Amortisation of other finite life intangibles
(5,203) (6,256) (11,600)
Short-term and low value asset leases
(4,261) (4,461) (10,358)
Donations
(166) (24) (443)
Employee benefit expense
(257,595) (244,673) (491,699)
Defined contribution plan expense
(15,999)
(14,438)
(29,321)
Other expenses
(228,089) (230,323) (444,904)
(6,352,298) (5,925,132) (11,805,778)
(1) One-off items comprise transaction costs incurred in relation to acquisition activities undertaken during the period.
3. SHARE CAPITAL
Six months
31 Dec 23
Six months
31 Dec 22
Year ended
30 Jun 23
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(audited)
Fully paid ordinary shares
Balance at beginning of
period
191,604 1,889,863 189,383 1,810,562 189,383 1,810,562
Dividend reinvested
- - 1,185 39,214 2,130 77,981
Performance rights
186
-
46
-
46
-
Share placement and retail
offer issue costs
- - - (285) - (285)
Tax on deductible issue costs
-
-
-
85
-
85
Issue of shares to staff under
employee share plan
27 932 24 838 45 1,681
Employee share issue costs
-
(74)
-
(59)
-
(161)
191,817
1,890,721
190,638
1,850,355
191,604
1,889,863
12
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2023
4. DIVIDENDS
AUD
Six months
31 Dec 23
AUD
Six months
31 Dec 22
AUD
Year ended
30 Jun 23
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(audited)
Recognised amounts
Fully paid ordinary shares
Final – prior year
52.7 100,879 43.9 83,001 43.9 83,001
Interim – current year
- - - - 48.2 92,610
52.7 100,879 43.9 83,001 92.1 175,611
Unrecognised amounts
Final dividend
- - - - 52.4 100,477
Interim dividend
52.9 101,443 48.4 94,631 - -
52.9 101,443 48.4 94,631 52.4 100,477
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 57.0 New Zealand cents per share on 20 February 2024. The record date for the dividend is 1 March 2024 and the
dividend will be paid on 22 March 2024.
The following table shows dividends approved in New Zealand dollars:
Six months
Six months
Year ended
31 Dec 23
NZD
31 Dec 22
NZD
30 Jun 23
NZD
Cents per
share
Cents per
share
Cents per
share
Recognised amounts
Fully paid ordinary shares
Final – prior year
57.0 49.0 49.0
Interim – current year
- - 53.0
57.0 49.0 102.0
Unrecognised amounts
Final dividend
- - 57.0
Interim dividend
57.0 53.0 -
57.0 53.0 57.0
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 2023
5. NOTES TO THE CASH FLOW STATEMENT
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
Reconciliation of profit for the period with cash flows from operating
activities
Profit for the period
137,256 137,591 263,445
Add/(less) non-cash items:
Depreciation of property, plant and equipment
16,395 17,297 32,454
Depreciation on right of use assets
31,655 26,140 53,792
Amortisation of finite life intangibles
18,293 19,725 38,538
Loss/(gain) on sale of property, plant and equipment
48
(249)
1,272
Share of profit from associates
(6,534) (5,428) (12,369)
Expense recognised in respect of share-based payments
5,907 4,029 9,014
Deferred tax
183 (7,712) 7,590
65,947
53,802
130,291
Movements in working capital:
Trade and other receivables
(29,560) (135,766) (123,431)
Prepayments
(9,176) (14,453) (9,157)
Inventories
(100,041) (86,213) (130,262)
Current tax refundable/payable
10,252 (19,387) (39,953)
Trade and other payables
30,797 208,504 270,728
Employee benefits
(10,886) (6,990) 4,652
Foreign currency translation of working capital balances
(1,156) 3,056 3,258
(109,770) (51,249) (24,165)
Balances classified as investing activities
11,859 24,639 25,831
Working capital items acquired (including fair value adjustments)
171 (3,718) (4,026)
Net cash inflow from operating activities
105,463 161,065 391,376
14
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2023
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$’000
Six months ended 31 December 2023 (unaudited):
Revenue from external customers
6,296,306
286,182
-
6,582,488
EBITDA
273,568 47,162 (17,663) 303,067
Depreciation of property, plant and equipment
(14,483)
(1,912)
-
(16,395)
Depreciation on right of use assets
(27,941) (3,164) (550) (31,655)
Amortisation of finite life intangibles attributable to
fair value adjustment for the LifeHealthcare Group
acquisition
(13,090) - - (13,090)
Amortisation of other finite life intangibles
(4,874) (329) - (5,203)
EBIT
213,180 41,757 (18,213) 236,724
Net finance costs
- - (44,766) (44,766)
Tax (expense)/benefit
(59,614) (10,836) 15,748 (54,702)
Profit for the period
153,566 30,921 (47,231) 137,256
Non-controlling interests
(1,081) - - (1,081)
Profit for the period attributable to owners of the
Company
152,485 30,921 (47,231) 136,175
Six months ended 31 December 2022 (unaudited):
Revenue from external customers
5,854,561
291,161
-
6,145,722
EBITDA
254,952 50,965 (16,737) 289,180
Depreciation of property, plant and equipment
(15,171)
(2,126)
-
(17,297)
Depreciation on right of use assets
(22,755) (2,835) (550) (26,140)
Amortisation of finite life intangibles attributable to
fair value adjustment for the LifeHealthcare Group
acquisition
(13,469)
-
-
(13,469)
Amortisation of other finite life intangibles
(5,858) (398) - (6,256)
EBIT
197,699 45,606 (17,287) 226,018
Net finance costs
- - (33,391) (33,391)
Tax (expense)/benefit
(55,440) (12,206) 12,610 (55,036)
Profit for the period
142,259 33,400 (38,068) 137,591
Non-controlling interests
(5,393) - - (5,393)
Profit for the period attributable to owners of the
Company
136,866 33,400 (38,068) 132,198
15
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2023
6. SEGMENT INFORMATION (Continued)
Healthcare
A$’000
Animal Care
A$’000
Corporate
A$’000
Group
A$’000
Year ended 30 June 2023 (audited):
Revenue from external customers
11,676,557
560,844
-
12,237,401
EBITDA 504,469 98,443 (34,136) 568,776
Depreciation of property, plant and equipment
(28,684)
(3,770)
-
(32,454)
Depreciation on right of use assets
(46,826) (5,867) (1,099) (53,792)
Amortisation of finite life intangibles attributable to
fair value adjustment for the LifeHealthcare Group
acquisition
(26,938)
-
-
(26,938)
Amortisation of other finite life intangibles
(10,919) (681) - (11,600)
EBIT
391,102 88,125 (35,235) 443,992
Net finance costs
- - (70,561) (70,561)
Tax (expense)/benefit
(113,028) (23,487) 26,529 (109,986)
Profit for the period
278,074 64,638 (79,267) 263,445
Non-controlling interests
(10,072) - - (10,072)
Profit for the period attributable to owners of the
Company
268,002 64,638 (79,267) 253,373
The accounting policies of the reportable segments are consistent with the Group’s accounting policies. Segment result
represents profit before depreciation, amortisation, net finance costs and tax. This is the measure reported to the chief
operating decision maker for the purposes of resource allocation and assessment of segment performance.
(c) Segment assets
Assets are not allocated to operating segments as they are not reported to the chief operating decision-maker at segment
level.
(d) Revenues from major products and services
The Group’s major products and services are transacted the same as its reportable segments i.e. Healthcare, Animal Care and
Corporate.
(e) Geographical information
The Group operates in two principal geographical areas: (1) Australia and (2) New Zealand (country of domicile) and
Southeast Asia.
The Group’s revenue from external customers by geographical location (of the reportable segment) and information about its
segment assets (non-current assets excluding investments in associates and deferred tax assets) are detailed below:
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
Revenue from external customers
Australia
5,279,075 5,008,362 9,901,504
New Zealand and Southeast Asia
1,303,413 1,137,360 2,335,897
6,582,488 6,145,722 12,237,401
Non-current assets
Australia
2,753,619 2,689,191 2,693,830
New Zealand and Southeast Asia
618,351 462,805 476,090
3,371,970 3,151,996 3,169,920
16
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2023
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 entered into agreements to extend the maturity date of two term debt facilities, $125.0m and NZ$50.0m, to
October 2027. The Group also extended its term debt facility in Southeast Asia of $53.5m to March 2025. At 31 December 2023
the Group had unutilised term loan facilities of $251.0m (December 2022: $505.3m, June 2023: $598.2m).
The Group also has a secured trade debtor securitisation facility of which $228.3m was unutilised at 31 December 2023
(December 2022: $369.1m, June 2023: $357.9m). In addition, the Group has a $75.0m 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 2023, the maturity profile of the Group’s term debt and securitisation facilities was:
Facility Amount Maturity
Term debt facilities $616.4m 1-2 years
Term debt facilities $745.0m 2-3 years
Term debt facilities $171.4m 3-4 years
Securitisation facility $400.0m 1-2 years
8. FINANCIAL INSTRUMENTS
The Group enters into forward foreign currency exchange contracts to hedge trading transactions, including anticipated
transactions, denominated in foreign currencies; and uses interest rate swaps and interest rate collars to manage cash flow
interest rate risk.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the
nature of the hedge relationship. The Group designates certain derivatives as cash flow hedges of highly probable forecast
transactions.
Fair value of derivative financial instruments
Six months
31 Dec 23
A$’000
(unaudited)
Six months
31 Dec 22
A$’000
(unaudited)
Year ended
30 Jun 23
A$’000
(audited)
Other financial assets – derivatives (at fair value)
Forward foreign exchange contracts
76 2,192 3,258
Interest rate swaps
- 555 230
Interest rate collars
4,625 17,297 13,348
4,701 20,044 16,836
Other financial liabilities – derivatives (at fair value)
Forward foreign exchange contracts
493 611 -
Other financial liabilities – consideration for remaining
non-controlling interests (Note 10)
33,000
137,000
165,000
33,493 137,611 165,000
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, interest rate collars, or other financial liabilities 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 2023
9. IMPACT OF NEW ACCOUNTING STANDARDS
In the current period the Group has adopted all mandatory new and amended standards and interpretations. The adoption of
these new standards has had no material impact on these financial statements.
10. ACQUISITION INFORMATION
LifeHealthcare Group acquisition – Put option over non-controlling interests
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), including 51% interest in
Transmedic Pte Ltd (Transmedic, a subsidiary of LifeHealthcare Group). The Group also entered into arrangements providing a
pathway to 100% ownership of Transmedic, resulting in a financial liability – derivative of $137.0m initially recognised on the
balance sheet as at 30 June 2022 and a corresponding adjustment to non-controlling interests. Subsequently, the amount
expected to be paid at the time of exercise of the option was reassessed to $165.0m, as at 30 June 2023, with the movement of
$28.0m recognised directly in equity.
During the period, the Group purchased an additional 39% shareholding in Transmedic for a consideration of $134.6m
(SG$118.7m), to increase its shareholding in Transmedic to 90%. An option arrangement has also been entered into that will
facilitate the Group moving to 100% ownership in FY26. As at 31 December 2023, the carrying value of the financial liability –
derivative was $33.0m. Subsequent changes to the carrying value of the financial liability – derivative are recognised directly in
equity within non-controlling interests.
Other acquisitions
On 31 July 2023, the Group completed the acquisition of Superior Pet Food Co., a leading manufacturer and supplier of dog treats
and premium dog rolls based in New Zealand, for a consideration of $77.7m (NZ$83.8m).
Other than the above, there are no material acquisitions during the period. The purchase price allocation for acquisitions during
the period is measured on a provisional basis and is subject to change pending the finalisation of the valuation of the assets
acquired and liabilities assumed. Combined details of acquisitions undertaken during the current period are as follows:
Carrying value
A$’000
(unaudited)
Fair value
adjustment
A$’000
(unaudited)
Fair value on
acquisition
A$’000
(unaudited)
Current assets
Cash and cash equivalents 4,426 - 4,426
Trade and other receivables 3,519 (615)
1
2,904
Prepayments 37 (37)
2
-
Inventories 3,645 (789)
3
2,856
Current tax receivables 47 (8)
4
39
Non-current assets
Property, plant and equipment 2,408 (755)
5
1,653
Right of use assets - 2,688
6
2,688
Deferred tax assets 40 1,296
4
1,336
Indefinite life intangibles - 21,863
7
21,863
Finite life intangibles 1 (1)
8
-
Current liabilities
Trade and other payables (1,903) (1,186)
9
(3,089)
Current tax payable - (470)
4
(470)
Lease liabilities - (368)
10
(368)
Employee benefits (1,329) (185)
11
(1,514)
Non-current liabilities
Trade and other payables - (723)
9
(723)
Lease liabilities - (2,320)
10
(2,320)
Deferred tax liabilities - (6,128)
4
(6,128)
Employee benefits (113) (150)
11
(263)
Net assets acquired
10,778 12,112
22,890
18
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2023
10. ACQUISITION INFORMATION (Continued)
A$’000
(unaudited)
Net assets acquired 22,890
Goodwill on acquisition
62,398
Total consideration 85,288
Less deferred purchase consideration (2,265)
Less cash and cash equivalents acquired
(4,426)
Add cash paid for additional shares from non-controlling interests 134,626
Add deferred purchase consideration paid in relation to prior year acquisitions 10,336
Net cash outflow from acquisition 223,559
1. To recognise the fair value of trade and other receivables on acquisition.
2. To recognise the fair value of prepayments on acquisition.
3. To recognise the fair value of inventories on acquisition.
4. To recognise current and deferred tax balances on acquisition
5. To recognise the fair value of property, plant and equipment on acquisition
6. To recognise the fair value of right of use assets on acquisition.
7. To recognise the fair value of the Superior Pet Food brands on acquisition.
8. To recognise the fair value of finite intangible assets on acquisition.
9. To recognise the fair value of trade and other payables on acquisition.
10. To recognise the fair value of lease liabilities on acquisition.
11. To recognise the fair value of employee benefits on acquisition.
11. EVENTS AFTER BALANCE DATE
Subsequent to 31 December 2023, 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
Stuart McLauchlan Independent Director
Julie Tay Independent Director (appointed May 2023)
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 2023
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 2023.
1. DETAILS OF THE REPORTING PERIOD AND THE PREVIOUS CORRESPONDING PERIOD
Current period: Six months ended 31 December 2023
Previous corresponding period Six months ended 31 December 2022
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 202331 Dec 2022Change
(Unaudited)AUD $000AUD $000%
Revenue6,582,4886,145,7227.1%
Earnings before depreciation, amortisation, net finance costs
and tax expense (EBITDA)
303,067289,1804.8%
Depreciation and amortisation(66,343)(63,162)(5.0%)
Earnings before interest and tax (EBIT)236,724226,0184.7%
Profit before tax (PBT)191,958192,627(0.3%)
Net profit after tax (NPAT)137,256137,591(0.2%)
Net profit after tax (NPAT) attributable to owners of the
Company
136,175132,1983.0%
Weighted average number of shares191,742190,0180.9%
Basic EPS – (CPS)71.069.62.1%
Net tangible asset backing per ordinary share – ($)($4.24)($3.79)
Underlying EBITDA
(refer reconciliation below)313,167289,1808.3%
Underlying EBIT
(refer reconciliation below)259,914239,4878.5%
Underlying PBT
(refer reconciliation below)215,148206,0964.4%
Underlying Net profit after tax (NPAT) attributable to the
owners of the Company
(refer reconciliation below)152,409141,6267.6%
Underlying EPS – (CPS)79.574.56.6%
EBOS GROUP LIMITED
APPENDIX 4D
2
Dividends Amount Per Share
(NZ$ Cents)
Franked amount per
security to 30% tax rate
Interim dividend payable 22 March 2024 57.0c 100%
Interim dividend – previous corresponding period 53.0c 100%
Key dates for the 2024 Interim Dividend
Ex-dividend date 29 February 2024
Record date 01 March 2024
(5.00pm NZST)
Dividend payment date 22 March 2024
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 2023 period excludes the amortisation (non-cash) expense
attributable to the LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets ($13.1m pre tax, $9.2m
post tax) and one-off M&A costs ($10.1m pre tax, $7.1m post tax) primarily associated with a strategic transaction which did not
proceed. Underlying earnings for the 31 December 2022 period excludes the amortisation (non-cash) expense attributable to the
LifeHealthcare acquisition PPA of finite life intangible assets ($13.5m pre tax, $9.4m post tax).
Reconciliation of Reported to Underlying Earnings31 Dec 202331 Dec 2022Change
(Unaudited)AUD $000AUD $000%
Reported EBITDA303,067289,1804.8%
Add back one-off items incurred during the period
1
10,100-
Underlying EBITDA313,167289,1808.3%
Reported EBIT236,724226,0184.7%
Add back one-off items incurred during the period
1
10,100-
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,09013,469
Underlying EBIT259,914239,4878.5%
Reported PBT191,958192,627(0.3%)
Add back one-off items incurred during the period
1
10,100-
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,09013,469
Underlying PBT215,148206,0964.4%
Reported Net Profit after Tax (NPAT) attributable to owners
of the Company
136,175132,1983.0%
Add back one-off items incurred during the period
1
(net of tax
and after non-controlling interests)
7,070-
Add back amortisation (non-cash) on LifeHealthcare PPA
1
(net of tax and after non-controlling interests)
9,1649,428
Underlying Net Profit after Tax (NPAT) attributable to
owners of the Company
152,409141,6267.6%
EBOS GROUP LIMITED
APPENDIX 4D
3
For supplementary comments on the Group’s financial results refer to the Results Presentation, Letter to
Shareholders and Media Release issued 21 February 2024.
4. DIVIDENDS PAID AND DECLARED
Group Results
(Unaudited)
Amount
Per Share
(NZ$ Cents)
Amount
Per Share
(A$ Cents)
Total
Amount
(A$)
Date Paid / Payable
Dividends declared in respect of
the year ending 30 June 2024
2024 interim dividend 57.0 cents 52.9 cents $101,443,000 22 March 2024
Dividends paid in respect of the
year ended 30 June 2023
2023 final dividend 57.0 cents 52.7 cents $100,879,000 29 September 2023
2023 interim dividend 53.0 cents 48.2 cents $92,610,000 17 March 2023
110.0 cents 100.9 cents $193,489,000
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 2024 interim dividend.
6. ENTITIES ACQUIRED
Refer to Note 10 of the 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 2023.
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 2023 was $6,534,000 (2022:
$5,428,000).
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 2023
Previous Reporting Period 6 months to 31 December 2022
Currency AUD
Amount (AUD $000s) Percentage change
Revenue from continuing operations $6,582,488 7.1%
Total Revenue $6,582,488 7.1%
Underlying net profit from continuing operations
attributable to security holders
1
$152,409 7.6%
Net profit/(loss) from continuing operations $136,175 3.0%
Total net profit/(loss) $136,175 3.0%
Final Dividend
Amount per Quoted Equity Security NZD $0.57000000
Imputed amount per Quoted Equity Security NZD $0.05541667
Record Date 01 March 2024
Dividend Payment Date 22 March 2024
Current period
Prior comparable
period
Net tangible assets per Quoted Equity Security
2
AUD($4.24) AUD($3.79)
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 2023, issued on 21 February 2024.
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 21 February 2024
Unaudited condensed consolidated interim financial statements accompany this announcement.
1
Underlying earnings for the 31 December 2023 period excludes the amortisation (non-cash) expense attributable to the
LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible assets ($13.1m pre tax, $9.2m post
tax) and one-off M&A costs ($10.1m pre tax, $7.1m post tax) primarily associated with a strategic transaction which did
not proceed. Underlying earnings for the 31 December 2022 period excludes the amortisation (non-cash) expense
attributable to the LifeHealthcare acquisition PPA of finite life intangible assets ($13.5m pre tax, $9.4m post tax). Refer to
Appendix 1 for the reconciliation between reported and underlying earnings.
2
Net Tangible Assets excludes A$356.4m (December 2022: A$291.4m) of Right of Use assets, although includes
A$381.7m (December 2022: A$312.1m) 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 2023 period excludes the amortisation
(non-cash) expense attributable to the LifeHealthcare acquisition purchase price accounting (PPA) of finite life intangible
assets ($13.1m pre tax, $9.2m post tax) and one-off M&A costs ($10.1m pre tax, $7.1m post tax) primarily associated
with a strategic transaction which did not proceed. Underlying earnings for the 31 December 2022 period excludes the
amortisation (non-cash) expense attributable to the LifeHealthcare acquisition PPA of finite life intangible assets ($13.5m
pre tax, $9.4m post tax).
Reconciliation of Reported to Underlying Earnings31 Dec 202331 Dec 2022Change
(Unaudited)AUD $000AUD $000%
Reported EBITDA303,067289,1804.8%
Add back one-off items incurred during the period
1
10,100-
Underlying EBITDA313,167289,1808.3%
Reported EBIT236,724226,0184.7%
Add back one-off items incurred during the period
1
10,100-
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,09013,469
Underlying EBIT259,914239,4878.5%
Reported PBT191,958192,627(0.3%)
Add back one-off items incurred during the period
1
10,100-
Add back amortisation (non-cash) on LifeHealthcare PPA
1
13,09013,469
Underlying PBT215,148206,0964.4%
Reported Net Profit after Tax (NPAT) attributable to owners
of the Company
136,175132,1983.0%
Add back one-off items incurred during the period
1
(net of tax
and after non-controlling interests)
7,070-
Add back amortisation (non-cash) on LifeHealthcare PPA
1
(net of tax and after non-controlling interests)
9,1649,428
Underlying Net Profit after Tax (NPAT) attributable to
owners of the Company
152,409141,6267.6%
---
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 01 March 2024
Ex-Date (one business day before the
Record Date)
29 February 2024
Payment date (and allotment date for
DRP)
22 March 2024
Total monies associated with the
distribution
1
NZD $109,336,000
(AUD $101,443,000)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
NZD $0.62541667
Gross taxable amount
3
NZD $0.62541667
Total cash distribution
4
NZD $0.57000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount NZD $0.02514706
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 $0.05541667
Resident Withholding Tax per financial
product
NZD $0.15097083
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
04 March 2024 08 March 2024
Date strike price to be announced (if not
available at this time)
13 March 2024
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 2024 interim
dividend. The VWAP shall be determined over the period of
04 March 2024 to 08 March 2024.
Last date to submit a participation notice
for this distribution in accordance with
DRP participation terms
04 March 2024
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 21 February 2024
---
EBOS GROUP LIMITED
(“Company”)
Directors’ Declaration in respect of the Group Financial Statements
for the six months ended 31 December 2023
Declaration
The Directors of the Company hereby declare that, in the Directors’ opinion:
• The EBOS Group Limited condensed consolidated interim unaudited financial statements for
the six months ended 31 December 2023 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 2023 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 20 February 2024 and
is signed for and on behalf of directors by the board chairman.
Signed
E Coutts
Chairperson
20 February 2024
---
2024 Half Year Results
Dear Shareholders,
We are pleased to report another strong performance for
EBOS for the first half of the 2024 financial year driven
by continued organic growth as well as several strategic
investments.
This result continues EBOS’ long term growth trajectory in
delivering value for our stakeholders. The success we have
achieved is the result of the combined efforts of our more
than 5,000 employees across New Zealand, Australia and
Southeast Asia.
Financial Highlights
$6.6 billion Revenue +7.1% increase
$313.2 million EBITDA +8.3% increase
$152.4 million NPAT +7.6% increase
Underlying Results
31 December 2023
Interim Shareholders
Report 2024
Underlying EBITDA
Six months to 31 December ($millions)
20192020202120222023
168.4
184.1
207.7
289.2
313.2
20192020202120222023
82.6
94.3
109.3
141.6
152.4
Underlying net profit after tax
Six months to 31 December ($millions)
Key Highlights
$6.6b
revenue
(+7.1%)
79.5c
underlying
earnings
per share
(+6.6%)
NZ 5 7. 0 c
interim dividend per share
(+7.5%)
All amounts are in Australian dollars unless otherwise indicated.
2024 Interim Shareholders Report 2
Key highlights of the first half included:
• Revenue of $6.6 billion (up 7.1%)
• Underlying EBITDA of $313.2 million (up 8.3%)
• Underlying NPAT of $152.4 million (up 7.6%)
• Underlying EPS of 79.5 cents (up 6.6%)
• Interim dividend declared of NZ 57.0 cents per share (up 7.5%)
• Continued strong performances from both our Healthcare and
Animal Care segments with Healthcare Underlying EBITDA up
8.0% and Animal Care Underlying EBITDA up 8.6%
• Stronger Group Underlying EBITDA growth of approximately
10% when normalised to exclude the Chemist Warehouse
Australia contract
• Significant investments undertaken in the first half, in line
with our strategy of investing for growth, including:
> Increased shareholding in our Southeast Asian medical
technology distribution business, Transmedic, to 90%.
> Completed the acquisition of Superior Pet Food Co.
(Superior), a leading New Zealand manufacturer and
supplier of premium dog rolls.
> Capital expenditure of $66 million invested into our
operational infrastructure.
Healthcare summary
Our Healthcare segment generated revenue of $6.3 billion
and Underlying EBITDA of $275.5 million, an increase of 7.5%
and 8.0% respectively on the prior corresponding period.
This performance was driven by our leading market positions,
strong organic growth and continued focus on margin
management.
In Australia, Healthcare revenue increased to $5.0 billion and
Underlying EBITDA increased to $228.6 million, an increase of
6.1% and 12.4% respectively. In New Zealand and Southeast
Asia, Healthcare revenue increased to $1.3 billion representing
growth of 14.0%, while Underlying EBITDA decreased to
$46.8 million. Southeast Asia EBITDA continued to grow strongly,
up 7.4%, driven by our Transmedic business, however New
Zealand EBITDA was impacted by a decline in non-recurring
COVID-19 activity within our Contract Logistics business.
Community Pharmacy revenue increased by $181.0 million
(up 4.9%), driven by the performance of our community
pharmacy retail brands including TerryWhite Chemmart
(TWC) and increased wholesale market share. Excluding
revenue from COVID-19 related anti-viral medications,
Community Pharmacy delivered normalised revenue growth
of 8.3%. Our TWC franchise network has continued its store
expansion and sales growth, further strengthening its position
as Australia’s largest health advice-oriented community
pharmacy network.
Institutional Healthcare revenue increased by $205.8 million
(up 11.7%) and Gross Operating Revenue (GOR) increased by
$17.4 million (up 6.0%), driven by Symbion Hospitals and the
performance of our Medical Technology businesses. Symbion
Hospitals revenue grew by approximately 15% predominantly
due to sales of high value specialty medicines. Our Medical
Technology division delivered first half revenue growth of 10.2%
driven by increasing surgical volumes particularly within the
implant channels. Medical consumables contribution was lower
due to the unwind of PPE and other COVID-19 related activity.
Our Contract Logistics business in Australia continues
to generate growth through new and existing principals.
Our recently completed facility in Sydney, NSW will
accommodate ongoing growth in the business. In New
Zealand, the Contract Logistics business experienced a
reduction in first half GOR due to a fall in demand for the
storage and servicing of COVID-19 related products and
as a result overall Contract Logistics GOR decreased by
approximately 2.0%.
As we continue to invest for growth, the Group increased its
shareholding in Transmedic to 90%. Transmedic is one of the
largest independent medical device distributors in Southeast
Asia and has long term relationships with global medical
device OEMs, representing their products in hospitals and
other clinical settings across several therapeutic channels.
EBOS acquired its original 51% interest in Transmedic as
part of the LifeHealthcare acquisition, which was completed
in May 2022. This transaction reflects our confidence in
the business and is consistent with our strategy to explore
further growth opportunities in Southeast Asia. Transmedic
shareholder and Chairman, Mr TS Lee, will remain our partner
in Transmedic and EBOS will continue to benefit from his
extensive knowledge of the business and the region.
Mr Lee will retain a 10% shareholding in Transmedic and
remain Chairman for approximately another two years.
An option arrangement has been entered into that will
facilitate EBOS moving to 100% ownership at the conclusion
of this period. The purchase price for the additional 39%
shareholding in Transmedic was approximately SGD119 million
(AUD$135 million
1
).
In addition, the Healthcare segment continued to invest in
its operational infrastructure to support its organic growth
including two new contract logistics facilities in Auckland
and Sydney; a new pharmacy wholesale centre in Auckland
and additional medical consumable distribution centres in
Auckland, Sydney and Melbourne.
Segment results
Healthcare
$6.3b
revenue
(+7.5%)
$275.5m
underlying
EBITDA
(+8.0%)
Animal Care
$286.2m
revenue
(-1.7%)
$55.4m
underlying
EBITDA
(+8.6%)
1
Based on an SGD:AUD exchange rate of 0.8816.
2024 Interim Shareholders Report 3
Segment Overview
Animal Care
Animal Care summary
Our Animal Care segment generated revenue of
$286.2 million and Underlying EBITDA of $55.4 million,
a decrease of 1.7% and an increase of 8.6% respectively
on the prior corresponding period.
The segment demonstrated resilient growth in its branded
business, as the specialty pet industry experiences a shift
towards larger national retailers. The strength of our brands
and our long-standing relationships with these retailers
positions us well in the changing environment.
Whilst our key brands Black Hawk and VitaPet continued
to maintain share leadership in their respective segments,
we did experience softer demand for our portfolio of
accessory products due to the more challenging consumer
environment.
The recently acquired Superior business has performed in
line with expectations with growth in both dog roll products
and bulk treats. This acquisition expands our portfolio of
branded products in attractive categories, increases our in-
house manufacturing capabilities and accelerates our new
product development initiatives.
In line with our Animal Care growth strategy, several new
product development launches have commenced or are
planned for FY24. These include the Black Hawk Healthy
Benefits® range and the relaunch and extension of the Black
Hawk cat food range. Black Hawk Healthy Benefits®, the first
specific benefits line from Black Hawk, appeared on shelves
in leading pet specialty retailers and vet clinics in September
2023 and has had positive early in-market performance.
The new Black Hawk cat food range was specifically
developed by cat nutritionists and vets and features premium
ingredients to support cats’ wellbeing and lifestyle.
Our pet food manufacturing facility continues to enhance
our local supply chain capabilities and provide a competitive
advantage for the Black Hawk and VitaPet ranges through
continuity of supply and new product launches.
Cash Flow, Net Debt and Return on Capital Employed
The Group generated solid underlying operating cash flow of
$115.6 million, reflecting strong Underlying EBITDA, partially
offset by finance costs, tax payments and net working
capital movements.
Return on Capital Employed (“ROCE”) of 15.1% is in line with
June 2023 and ahead of December 2022 by approximately
70 bp. ROCE is in line with the Group’s target of 15%.
Net Debt: EBITDA ratio at 31 December 2023 was 2.06x
(1.76x as at 31 December 2022) primarily reflecting
consideration paid for acquisitions completed in the period
(Superior and the increased shareholding in Transmedic).
Sustainability and Community
Resilience is integral to EBOS and is becoming increasingly
important with the effects of climate change being felt
with increasing frequency and severity in the communities
we serve. In times of climate related crises our teams have
responded readily to assist impacted communities across
New Zealand and Australia, working with government,
military, rescue agencies and our transport partners to
ensure the ongoing reliable supply of medicines and
related products.
As we have done since our inception in 1922, our focus is to
serve the needs of customers and consumers regardless of
the circumstances. EBOS continues to assess, and where
applicable, quantify the nature and scale of climate-related
risks in our value chain and the overall potential impact to
our business. EBOS will release its first Climate Statement
later in calendar year 2024.
Recognising our responsibility to act, we are investing
in energy efficiencies, renewable power and low carbon
technologies. In FY23, we achieved net zero Scope 1 emissions
in New Zealand and Australia using Australian Carbon
Credit Units (ACCUs) to offset direct emissions from our
facilities. We have also completed the first phase of our
18.8MW solar array project, with the installation of a 500kW
roof-mounted array in Parkes NSW, and preparations for the
next phase are underway.
Underlying EBITDA
Six months to 31 December ($millions)
Healthcare
20192020202120222023
1 47.1
161.3
185.2
255.0
275.5
Underlying EBITDA
Six months to 31 December ($millions)
20192020202120222023
28.5
33.9
38.8
51.0
55.4
2024 Interim Shareholders Report 4
Printed on recycled stock
EBOS continues to work with community partners across
Australia and New Zealand who are aligned with our purpose
‘Advance opportunities to enrich lives’. The Group and our
employees again supported organisations including Ovarian
Cancer Australia, BackTrack, LandSAR, FightMND, Cerebral
Pa
lsy Alliance and others.
Further detail on our ESG Program can be found at
www.ebosgroup.com/sustainability.
Board Update
Consistent with EBOS’ Board renewal process, independent
directors Sarah Ottrey and Stuart McGregor retired as
directors effective 24 October 2023. The retirements were
part of a carefully considered succession process that has
included the appointments of Mark Bloom and Julie Tay
as independent directors during the last 18 months.
Ms Ottrey and Mr McGregor had been directors since 2006
and 2013 respectively and made valuable contributions to
EBOS during their tenure, a period in which EBOS generated
significant growth and shareholder value.
Interim Dividend
The Directors declared an interim dividend of NZ 57.0 cents
per share, an increase of 7.5% on the prior corresponding
period. This implies a dividend payout ratio of 66.4%
2
on an
u
nderlying basis.
The Dividend Reinvestment Plan 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.
The record date for the dividend is 1 March 2024 and the
dividend will be paid on 22 March 2024. The dividend will be
imputed to 25% for New Zealand tax resident shareholders
and fully franked for Australian tax resident shareholders.
2
Dividend payout ratio is based on an underlying basis on a NZD:AUD average exchange rate of 0.925.
Outlook
EBOS is pleased with the strong earnings growth in the first
half of FY24 and is successfully managing its EBITDA margin
in the current environment.
January 2024 trading conditions were positive with the
Underlying EBITDA growth rates including and excluding the
Chemist Warehouse Australia contract, consistent with the
levels recorded in the first half.
The Group is confident that for the remainder of FY24 it will
continue to generate organic earnings growth across both
Healthcare and Animal Care and pursue further bolt-on
acquisitions.
We will continue to service the Chemist Warehouse Australia
contract until its expiry date of 30 June 2024. Thereafter,
we do not expect to generate revenue from this contract.
The Group expects to have capital expenditure in FY24
slightly above the FY23 level as we continue to invest for
growth and modernise our facilities, particularly our
New Zealand Healthcare operations.
EBOS’ balance sheet is strong and well positioned to pursue
growth opportunities.
We thank our shareholders for their ongoing support.
Liz Coutts
Chair of the Board
John Cullity
Chief Executive Officer
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.