EBOS Group Limited reported a solid 13% increase in revenue for the first half of FY2026, alongside a 13% rise in net profit attributable to owners, while maintaining its interim dividend.
- Revenue increased 13% to AUD 6.77 billion
- Reported NPAT rose 13% to AUD 124.8 million
- Underlying NPAT declined 4.3% due to acquisition and restructuring costs
- Interim dividend maintained at 57 NZ cents per share
- Dividend reinvestment plan offers 2% discount
EBOS Group’s Revenue and Profit Growth
EBOS Group Limited has delivered a robust financial performance for the six months ended 31 December 2025, with revenue climbing 13% to AUD 6.77 billion compared to the prior corresponding period. This growth reflects the company’s continued strength in pharmaceutical distribution and healthcare services across Australia and New Zealand.
Reported net profit after tax (NPAT) attributable to owners rose in tandem by 13% to AUD 124.8 million, signalling effective operational management despite some headwinds. Earnings before interest, tax, depreciation and amortisation (EBITDA) also increased by 9.7% to AUD 302.7 million, underscoring solid underlying cash flow generation.
Underlying Earnings and Cost Pressures
However, when adjusting for acquisition-related amortisation, merger and acquisition (M&A) transaction costs, restructuring expenses, and acquisition gains, underlying NPAT declined by 4.3% to AUD 125.4 million. These adjustments highlight the ongoing investment and integration costs associated with EBOS’s growth strategy, including site transitions and corporate restructuring.
The company’s underlying earnings metrics reveal a slight contraction in profitability, with underlying EBIT and PBT down marginally compared to the prior period. This suggests that while top-line growth remains strong, margin pressures from integration and restructuring activities are impacting near-term earnings quality.
Dividend and Shareholder Returns
In line with its steady financial results, EBOS declared an interim dividend of 57 New Zealand cents per share, unchanged from the previous corresponding period. The dividend will be fully franked to a 30% tax rate and payable on 27 March 2026. The company’s dividend reinvestment plan (DRP) will operate with a 2% discount to the volume weighted average price, offering shareholders a cost-effective way to increase their holdings.
This consistent dividend policy reflects EBOS’s confidence in its cash flow generation and commitment to returning value to shareholders, even as it navigates the complexities of acquisitions and restructuring.
Outlook and Market Position
EBOS’s interim results were independently reviewed with an unmodified opinion, reinforcing the credibility of the reported figures. The company’s equity interest in Animates NZ Holdings Limited remains steady at 50%, though income from associates was immaterial to the group’s overall results.
Looking ahead, investors will be watching how EBOS manages the balance between growth investments and margin pressures, particularly as it integrates recent acquisitions. The company’s ability to sustain revenue momentum while improving underlying profitability will be key to its medium-term outlook.
Bottom Line?
EBOS’s strong revenue growth and steady dividend mask underlying earnings pressures that will test its integration strategy in the months ahead.
Questions in the middle?
- How will EBOS manage margin pressures from ongoing restructuring and acquisition costs?
- What impact will recent acquisitions have on future underlying profitability?
- Will the company maintain its dividend policy amid fluctuating underlying earnings?