EBOS FY26 Underlying EBITDA A$614m, Revenue A$13.5b

EBOS (ASX:EBO) Group reported its full year results to 30 June 2026, with all dollar figures stated in Australian dollars and comparisons made against FY25, and with the dividend declared in New Zealand cents. Revenue increased 9.9 per cent to $13.5 billion and gross operating revenue increased 6.5 per cent to $1.7 billion. Underlying EBITDA increased 5.0 per cent to $614 million, while underlying net profit after tax was $250 million, down 3.1 per cent, which the company said reflects higher depreciation and amortisation and financing costs associated with the group's investment cycle. Statutory net profit after tax was $225 million, up 4.7 per cent. Underlying earnings per share were 121.7 cents, down 7.3 per cent, and statutory earnings per share were 109.8 cents. The underlying EBITDA margin was 4.6 per cent against 4.8 per cent. Leverage was 2.1 times, calculated in accordance with banking covenants and excluding IFRS 16 lease impacts, remaining within the group's target range of 1.7 to 2.3 times, and return on capital employed was 12.8 per cent, down 20 basis points, reflecting the higher capital base. EBOS said all FY26 financial guidance metrics were delivered within its stated ranges, noting that FY26 underlying EBITDA guidance was updated on 22 April 2026 to reflect the impact of elevated fuel price and broader energy cost pressures. The Directors declared a final dividend of NZ 61.5 cents per share, in line with the prior year, at a payout ratio of 84.5 per cent on an underlying basis; the dividend will be imputed to 20 per cent for New Zealand tax resident shareholders and fully franked for Australian tax resident shareholders, with a record date of 28 August 2026 and payment on 18 September 2026, and the dividend reinvestment plan operating at a 2.0 per cent discount to the volume weighted average share price.

The Healthcare segment delivered revenue growth of 8.5 per cent to $12.6 billion and underlying EBITDA growth of 3.2 per cent to $516 million, which EBOS attributed to Community Pharmacy, Hospital Medicines, Medical Technology and Contract Logistics, including continued demand for GLP-1 and other high-value medicines, network expansion and contributions from acquisitions, with EBITDA growth partially offset by higher fuel costs, foreign exchange impacts and softer capital sales in South East Asia and Hong Kong. Community Pharmacy revenue increased 10.2 per cent to $7.1 billion with gross operating revenue up 4.3 per cent to $613 million; Contract Logistics gross operating revenue increased 13.1 per cent to $174 million; and hospital medicines, consumables and other revenue increased 4.3 per cent to $3.8 billion. TerryWhite Chemmart network sales increased to approximately $2.9 billion, up 9.2 per cent and 7.6 per cent like-for-like, and total network stores reached 780, an increase of 86 on the prior year, on a count that includes TerryWhite Chemmart, MediAdvice, Cincotta branded pharmacies and unbranded pharmacies supported by the group. Animal Care revenue increased 34.6 per cent to $907 million and underlying EBITDA increased 11.6 per cent to $138 million, supported by the acquisition of SVS, momentum within Lyppard and share gains across the Black Hawk and VitaPet portfolios; its gross operating revenue margin of 26.8 per cent against 32.0 per cent reflects a mix shift toward wholesale following the inclusion of SVS, which the release says limits comparability to the prior period. EBOS completed its four-year, $360 million distribution centre renewal program during the year and deployed around $400 million of capital across capital expenditure, mergers and acquisitions and shareholder returns. For FY27 the group is targeting underlying EBITDA of between $635 million and $655 million, with capital expenditure expected to reduce to approximately $100 million, depreciation and amortisation expected to increase to approximately $152 million to $162 million and net finance costs of approximately $138 million to $148 million, with that growth first-half weighted, and with earnings and cash flows expected to be weighted to the second half.