EBOS completes $360m upgrade with $13.5b revenue, eyes mid-single digit EBITDA growth

Strong FY26 growth despite cost headwinds

EBOS Group Limited (NZX:EBO) has delivered a robust FY26 performance, with revenue climbing 9.9% to AUD 13.5 billion and underlying EBITDA increasing 5% to AUD 614 million. This growth was broad-based across its Healthcare and Animal Care segments, supported by strategic acquisitions including Paringa Pet Foods and K-Talyst. Despite elevated fuel costs and foreign exchange pressures, the company met all its financial guidance metrics.

Underlying net profit after tax (NPAT) dipped 3.1% to AUD 250 million, weighed down by higher depreciation and financing costs linked to the recent capital investment cycle. Statutory NPAT, however, rose 4.7% to AUD 225 million. Earnings per share were steady at 109.8 cents.

Distribution centre renewal program completed

FY26 marked the completion of EBOS’ four-year, AUD 360 million distribution centre renewal program, a major infrastructure upgrade designed to boost capacity and productivity. The new Symbion Kemps Creek facility in Sydney and a pharmaceutical-grade warehouse in Perth are among the key assets now operational, delivering automation efficiencies and expanded cold-chain capabilities.

These investments underpin EBOS’ supply chain resilience and position the business to support future growth without requiring significant further capital expenditure. The company expects capital expenditure to normalise at approximately AUD 100 million in FY27, down from AUD 145 million in FY26.

Segment highlights: Healthcare and Animal Care

The Healthcare segment grew revenue 8.5% to AUD 12.6 billion, with underlying EBITDA up 3.2% to AUD 516 million. Community Pharmacy sales rose 10.2%, driven by demand for high-value medicines such as GLP-1 therapies, while hospital medicines and medical consumables also showed solid growth. Contract Logistics expanded capacity and customer wins, with the new Perth facility enhancing national reach.

Retail Pharmacy Brands strengthened its position as Australia’s leading community pharmacy network, expanding to 780 stores and growing network sales by 9.2%. Digital engagement and health services like CareClinic contributed to this momentum, alongside owned brand growth of 11%.

EBOS Medical Technology posted 5.5% revenue growth (8.4% on a constant currency basis), fueled by organic expansion and acquisitions that broadened therapy coverage across orthopaedics, oncology, and aesthetics in Australia, New Zealand, Southeast Asia, and Hong Kong. Biologics innovation, including the Allovance acellular dermal matrix, gained traction.

The Animal Care segment delivered a standout performance with revenue up 34.6% to AUD 907 million and underlying EBITDA rising 11.6% to AUD 138 million. Growth was supported by the acquisition of SVS Veterinary Supplies and expansion of premium pet nutrition brands such as Black Hawk and VitaPet. The acquisition of Next Generation Pet Foods and Paringa Pet Foods unlocked access to fresh and chilled pet food categories, tapping into structural trends like pet humanisation and premiumisation.

Capital management and dividend policy

EBOS maintained a disciplined capital allocation approach, balancing reinvestment, acquisitions, and shareholder returns. The company deployed approximately AUD 400 million in FY26 across capital expenditure, mergers and acquisitions, and dividends.

The balance sheet remains robust with leverage at 2.1x, within the target range of 1.7x to 2.3x. Return on capital employed (ROCE) was 12.8%, slightly down due to the larger capital base from recent investments.

The Board declared a final dividend of NZ 61.5 cents per share, maintaining the payout ratio at 84.5% of underlying NPAT. The Dividend Reinvestment Plan will operate for this dividend, offering shareholders a 2% discount on shares issued in lieu of cash.

Outlook: Mid-single digit EBITDA growth and improved cash flow

Looking ahead to FY27, EBOS targets underlying EBITDA between AUD 635 million and 655 million, reflecting mid-single digit organic growth. The company plans to leverage its upgraded distribution network to drive productivity and network utilisation, expand pharmacy earnings, grow medical technology therapy areas, and introduce new products in Animal Care.

Capital expenditure is expected to reduce materially to around AUD 100 million, supporting stronger free cash flow and improved returns on capital. Depreciation and amortisation costs will rise to approximately AUD 152 million to 162 million, while net finance costs are forecast between AUD 138 million and 148 million, reflecting the full-year impact of recent investments.

EBOS anticipates leverage to remain within its target range, with seasonal working capital movements likely to cause modest increases in the first half before declining in the second half of FY27.

Executive remuneration and governance

Adam Hall, who commenced as CEO on 1 July 2025, received a total remuneration package including fixed pay, short-term incentives, and long-term incentives aligned with company performance and shareholder interests. The FY26 short-term incentive payout was 57% of maximum, reflecting solid financial results and non-financial performance measures such as health and safety.

The Board continues to emphasize governance, sustainability, and diversity, with ongoing initiatives in climate risk disclosure, renewable energy investments, and employee inclusion programs. EBOS also increased its financial contribution to environmental group Greenfleet, supporting large-scale reforestation projects in Australia and New Zealand.