EBOS Group Reports Profit Dip Amid Revenue Decline, Holds Dividend Steady
EBOS Group Limited’s interim results for H1 2025 reveal a notable decrease in revenue and profit compared to the prior year, yet the company maintains its interim dividend, signaling confidence despite headwinds.
- Revenue declined to A$5.99 billion from A$6.58 billion year-on-year
- Profit attributable to owners fell to A$110.49 million from A$136.18 million
- EBITDA decreased to A$275.8 million from A$303.1 million
- Interim dividend held steady at 57.0 New Zealand cents per share
- Acquisition of Pacific Surgical Inc. completed during the period
EBOS Group’s Interim Financial Performance
EBOS Group Limited has released its interim financial results for the six months ended 31 December 2024, reporting a contraction in both revenue and profit compared to the same period last year. Revenue fell to A$5.99 billion, down from A$6.58 billion in H1 2024, while profit attributable to owners declined to A$110.49 million from A$136.18 million.
This downturn reflects a challenging operating environment across the healthcare and animal care sectors, where EBOS operates. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also decreased to A$275.8 million from A$303.1 million, underscoring margin pressures.
Dividend Policy and Shareholder Returns
Despite the earnings dip, EBOS has maintained its interim dividend at 57.0 New Zealand cents per share, consistent with the previous year’s payout. This decision signals the board’s commitment to delivering shareholder value even amid profit headwinds. The dividend record date is set for 28 February 2025, with payment scheduled for 21 March 2025.
Strategic Moves and Acquisitions
During the period, EBOS completed the acquisition of Pacific Surgical Inc., a specialist orthopaedic device distributor in the Philippines, for approximately A$47 million. This move expands EBOS’s footprint in Southeast Asia and aligns with its strategy to strengthen its medical devices portfolio. The acquisition’s purchase price allocation remains provisional, pending final valuation.
EBOS also increased its equity interest in Transmedic to 100% in January 2025, following prior incremental share purchases. This consolidation could provide greater operational control and potential synergies within its medical devices segment.
Financial Position and Liquidity
The Group’s balance sheet remains robust, with equity attributable to owners rising to A$2.48 billion. EBOS has refinanced term debt facilities totaling A$1.6 billion and NZ$150 million, extending maturities between two to five years. Unutilised term loan facilities stood at A$505.4 million at period end, providing ample liquidity. The company also maintains a secured trade debtor securitisation facility with A$390.3 million undrawn, extended to September 2026.
Outlook and Market Context
While the interim results highlight a period of revenue and profit contraction, EBOS’s steady dividend and strategic acquisitions suggest management’s confidence in the Group’s medium-term prospects. The healthcare sector’s evolving dynamics, including supply chain challenges and competitive pressures, will require careful navigation. Investors will be watching how EBOS leverages its expanded regional presence and operational efficiencies to restore growth momentum.
Bottom Line?
EBOS’s interim results reflect near-term challenges but a steady dividend and strategic acquisitions hint at resilience ahead.
Questions in the middle?
- What factors contributed most to the revenue and profit decline in H1 2025?
- How will the Pacific Surgical acquisition impact EBOS’s growth trajectory and margins?
- What are the company’s plans to address margin pressures and competitive challenges?
