EBOS Group Limited reported solid FY25 results with 12% revenue growth and strategic acquisitions, setting sights on continued expansion and operational efficiency in FY26.
- 12% revenue growth excluding Chemist Warehouse Australia contract
- 7.5% underlying EBITDA increase driven by Healthcare and Animal Care segments
- Completion of distribution centre renewal program with $130–140m capex planned for FY26
- Acquisition of Next Generation Pet Foods expands premium pet treat offerings
- Maintained dividend payout ratio of 83.8%, reflecting confidence in growth outlook
Solid FY25 Performance Amid Strategic Expansion
EBOS Group Limited has delivered a strong financial performance for the fiscal year ended June 30, 2025, reporting a 12% increase in revenue excluding the Chemist Warehouse Australia (CWA) contract. Underlying EBITDA rose by 7.5%, underscoring the company’s effective execution of its growth strategy across its core Healthcare and Animal Care segments.
The company’s disciplined cost management efforts yielded a 20 basis points reduction in operating expenditure as a percentage of revenue, contributing to margin expansion despite a competitive environment, particularly within the Community Pharmacy sector.
Strategic Acquisitions and Infrastructure Investments
FY25 saw EBOS complete several bolt-on acquisitions, including the significant purchase of Next Generation Pet Foods, a Queensland-based manufacturer specializing in premium air-dried pet treats. This acquisition not only broadens EBOS’s product portfolio into high-growth, high-value pet categories but also enhances its manufacturing capabilities and supports international expansion plans.
Complementing its acquisition strategy, EBOS is finalizing a four-year distribution centre renewal program, investing $130–140 million in FY26 to complete eight new sites. This program has increased capacity by approximately 20%, improved refrigeration footprint to support specialty medicines like GLP-1, and introduced automation to reduce costs and improve service delivery.
Segment Highlights and Market Position
The Community Pharmacy segment grew revenue by 15.8% (excluding CWA), driven by new wholesale customers contributing approximately $385 million in revenue and the expansion of the TerryWhite Chemmart network to over 620 stores. Institutional Healthcare experienced 8.4% revenue growth, bolstered by strong demand for hospital medicines and double-digit growth in Medical Technology across Southeast Asia.
Animal Care revenue increased by 16.3%, supported by organic growth in branded products and the acquisition of SVS, a leading New Zealand vet wholesaler. Despite some margin pressure from acquisitions, the segment is poised for further expansion with the addition of Next Generation Pet Foods.
Financial Strength and Shareholder Returns
EBOS’s balance sheet remains robust, with net debt reduced to $918 million and a leverage ratio of 1.92x, supported by a $254 million capital raise in April 2025. The company maintained its dividend payout ratio at 83.8% of underlying net profit after tax, signaling confidence in its growth trajectory and financial stability. The Dividend Reinvestment Plan will be available for the upcoming final dividend, offering shareholders a discounted share purchase option.
Looking Ahead to FY26
For FY26, EBOS targets underlying EBITDA growth of approximately 7%, with continued contributions from both Healthcare and Animal Care divisions. Capital expenditure is expected to decline by about 30% after the completion of the distribution centre renewal program. The company anticipates net finance costs between $110 million and $120 million and an effective tax rate of around 28%. An investor day is planned for Q4 FY26 to provide further strategic updates.
EBOS continues to leverage its leading market positions, diversified portfolio, and operational excellence to navigate competitive pressures and macroeconomic challenges, maintaining its status as a defensive growth business in healthcare and animal care.
Bottom Line?
EBOS’s FY25 results and strategic moves set a solid foundation for sustained growth, but investors will watch closely how it navigates competitive and macroeconomic headwinds in FY26.
Questions in the middle?
- How will the integration of Next Generation Pet Foods impact margins and international expansion?
- What are the risks to achieving the targeted 7% EBITDA growth amid competitive pharmacy wholesale pressures?
- How will the completion of the distribution centre renewal program influence operational efficiency and cost structure going forward?