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Burgeoning Ebos grows profit

NZ Newswire logoNZ Newswire 21/02/2017 Paul McBeth
Stock image © William West Stock image

Ebos Group's recent acquisitions have helped the pharmaceutical and animal health products maker lift first-half profit 7.2 per cent and fatten its dividend to shareholders.

Net profit rose to $68.8 million in the six months ended December 31 from $64.2m a year earlier, the Christchurch-based company said on Wednesday.

Revenue climbed 21 per cent to $3.96 billion.

Ebos said profit would have been $3.7m higher had the kiwi dollar not appreciated against its Australian counterpart, and it upgraded annual guidance for underlying profit to be at the upper end of a previous projection for growth of 7-to-10 per cent.

"Our recent acquisitions of BlackHawk and Red Seal are making significant contributions to the earnings of this group," chief executive Patrick Davies said.

Ebos transformed itself in 2013 with the purchase of Australian pharmaceutical wholesaler and distributor Symbion, its biggest-ever deal, and has since bought New Zealand vitamin and herbal tea maker Red Seal, pharmaceuticals firm Zest, Australian pharmacy retailer Good Price Pharmacy Warehouse, the BlackHawk Premium Pet Care pet food business, and more recently merged its Australian Chemmart pharmacy chain with rival Terry White Group.

The board declared an interim dividend of 30 cents per share, up 15 per cent from a year earlier.

Ebos shares last traded at $18.11, and have gained 39 per cent over the past 12 months.

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