EBOS Hits $12.3B Revenue, $585M EBITDA in FY25, Confirms Dividend

Strong FY25 Performance Amid Industry Challenges

EBOS Group Limited has delivered a solid full-year result for FY25, reporting underlying revenue growth of 12% to AUD 12.3 billion and an underlying EBITDA of AUD 585 million, marking a 7.5% increase from the previous year. This performance aligns with the company’s guidance and underscores its operational resilience and strategic execution across its healthcare and animal care businesses.

CEO Adam Hall highlighted EBOS’ leadership in pharmaceutical wholesaling across Australia and New Zealand, as well as its growing footprint in Southeast Asia’s medical technology market. The company’s TerryWhite Chemmart pharmacy network continues to expand, now boasting over 620 stores, reinforcing its position as Australia’s largest health-services focused community pharmacy network.

Healthcare Segment Drives Growth with New Wins and Acquisitions

The healthcare segment generated revenue of $11.6 billion and underlying EBITDA of $500 million, reflecting strong organic growth and strategic acquisitions, particularly in Southeast Asia. Community Pharmacy revenue surged 15.8%, supported by new customer wins and increased demand for high-value medicines such as GLP-1 and autoimmune treatments. Institutional Healthcare and Contract Logistics also contributed positively, with expansions in medical technology and logistics infrastructure.

EBOS signed the First Pharmacy Wholesaler Agreement in December 2024, securing modest funding increases that will further improve margins from FY27 onwards. The company’s investment in new warehouse capacity and cold storage facilities is set to support specialty medicine growth, including GLP-1 products, into the future.

Animal Care Segment Accelerates Through Acquisitions and Innovation

EBOS’ animal care business continued its upward trajectory, with revenue rising 16.3% to $673 million and underlying EBITDA increasing 10.4%. Growth was driven by the branded business, including Black Hawk and VitaPet, alongside acquisitions such as SVS and Next Generation Pet Foods, which expand manufacturing capacity and product offerings in high-value categories. Despite some margin pressure from lower-margin acquisitions, the segment remains a key growth pillar.

Strategic Capital Allocation and Cost Discipline

The company completed five acquisitions during FY25, investing approximately $210 million to add around $330 million in annualized revenue. These acquisitions are expected to be immediately accretive to earnings per share and enhance return on capital employed. EBOS also achieved $30 million in cost savings through efficiencies in supply chain, labor, and administrative expenses, exceeding its FY25 target.

Capital expenditure for FY26 is forecast at $130–140 million, marking the completion of a major distribution centre renewal program that has increased capacity by about 20% and improved cost efficiency. Going forward, capital spending is expected to decline by roughly 30%, supporting improved free cash flow generation.

Dividend and Outlook Signal Confidence Amid Macro Pressures

The Board declared a final dividend consistent with FY24 levels, resulting in an 83.8% payout ratio, reflecting confidence in the company’s growth prospects and financial strength. The Dividend Reinvestment Plan offers shareholders a 2.5% discount, encouraging reinvestment.

Looking ahead, EBOS targets underlying EBITDA growth of approximately 7% in FY26, with contributions from both healthcare and animal care segments. While the company acknowledges near-term challenges such as competitive pressures in pharmacy wholesaling, subdued hospital capital expenditure, and cautious consumer spending on discretionary pet products, its diversified portfolio and strategic initiatives position it well for sustained growth.

EBOS plans to host an investor day in Q4 FY26 to provide deeper insights into its strategic priorities, capital management, and long-term growth drivers.