EBOS Group Limited has reported a 7% decline in revenue and a 21% drop in net profit for FY2025, yet it maintains its final dividend at 61.5 NZ cents per share. The results reflect ongoing cost pressures and restructuring expenses amid a challenging market environment.
- 7% decline in revenue to AUD 12.27 billion
- Net profit after tax down 20.8% to AUD 215.1 million
- Underlying earnings also fell, with EBITDA down 6.3%
- Final dividend maintained at 61.5 NZ cents per share
- Results include acquisition amortisation and restructuring costs
EBOS Group’s Financial Performance
EBOS Group Limited, a key player in pharmaceutical distribution and healthcare services, has released its audited financial results for the year ended 30 June 2025. The company reported a 7% decline in revenue, falling to AUD 12.27 billion from AUD 13.19 billion the previous year. This downturn reflects the challenging market conditions and cost pressures faced by the group during the period.
More notably, net profit after tax attributable to owners dropped sharply by 20.8% to AUD 215.1 million, down from AUD 271.5 million in FY2024. Underlying earnings, which adjust for non-recurring items such as acquisition-related amortisation and restructuring costs, also declined. Underlying EBITDA fell by 6.3%, while underlying net profit after tax decreased by 15.1%, signaling operational headwinds beyond one-off expenses.
Dividend and Shareholder Returns
Despite the profit contraction, EBOS has maintained its final dividend at 61.5 New Zealand cents per share, consistent with the prior year. The dividend is fully franked to a 30% tax rate and will be payable on 24 September 2025. The company’s dividend reinvestment plan remains active, offering shareholders a 2.5% discount on shares issued under the plan for this dividend.
This steady dividend payout underscores EBOS’s commitment to returning value to shareholders even amid a tougher earnings environment. The company’s weighted average shares increased slightly by 2%, while basic earnings per share fell 22.4%, reflecting the profit decline.
Operational and Strategic Context
The results incorporate adjustments for amortisation of intangible assets related to acquisitions, one-off merger and acquisition transaction costs, and restructuring and site transition expenses. These factors have weighed on reported earnings but are excluded from underlying profit measures to provide a clearer view of ongoing business performance.
EBOS’s associate investments, including Animates NZ Holdings and Good Price Pharmacy entities, contributed a modest $15 million in income, slightly up from the previous year. The company’s audited financial statements received an unmodified opinion, affirming the reliability of the reported figures.
Looking Ahead
With the annual meeting scheduled for late October in Auckland, investors will be keen to hear management’s outlook on navigating the current challenges. The company’s ability to sustain dividends while managing costs and pursuing strategic initiatives will be critical in the coming year.
Bottom Line?
EBOS faces a pivotal year balancing profit recovery with shareholder returns amid ongoing market pressures.
Questions in the middle?
- What specific operational challenges contributed most to the profit decline?
- How will EBOS’s restructuring efforts impact future earnings?
- What growth opportunities or acquisitions are planned to offset current headwinds?