EBOS Group has reported a ‘solid’ FY25 result, with management emphasising continued operational excellence, market leadership, and dividend stability. While the results were in line with guidance and showed resilience, investors should be mindful that much of the growth story is already reflected in EBOS’ share price, leaving little margin for disappointment.
STRATEGY & OUTLOOK
EBOS is heavily reinvesting. The A$360m distribution centre renewal program has delivered 8 new sites and more refrigeration for GLP-1 weight-loss drugs. The group completed five acquisitions in FY25 across Medical Technology and Animal Care, adding ~A$330m in annual revenue. Cost savings of A$30m were achieved, ahead of the FY26 target.
Management remains confident, guiding to FY26 underlying EBITDA of A$615m–635m (~7% midpoint growth), with contributions from both healthcare and animal care. Capital expenditure is expected to fall back to A$130–140m in FY26, with lower levels thereafter.
COMPANY NARRATIVE
CEO Adam Hall highlighted EBOS’ reinforced leadership in wholesale pharmacy, hospitals, medical technology, and animal care. The company emphasised double-digit revenue growth in healthcare excluding Chemist Warehouse, the continued expansion of the TerryWhite Chemmart network, and strength in Transmedic in Southeast Asia. Animal Care grew strongly, underpinned by Black Hawk, VitaPet, and the SVS acquisition. Management pointed
to a resilient balance sheet, strong free cash flow (A$302m), and confidence in capturing long-term industry tailwinds across healthcare and pet care.
HHG INSIGHT
EBOS continues to deliver operationally disciplined results and maintains its dividend track record. With growth slowing and competition rising, we believe the company is now priced for perfection, something that may not be achieved. Investors should discuss their portfolio with their adviser and consider trimming overweight positions in EBOS, reallocating the investment into complementary healthcare or diversify into other opportunities.
