Healthcare and animal products company, Ebos, has posted flat full year profit on steady revenue as it absorbed costs of new acquisitions and readied for growth.
Ebos' bottom line was affected by costs of bedding in new businesses and setting up new facilities. Photo: 123RF
The company reported a net profit of A$137.7 million ($146.1m) for the June year fractionally above last year, while revenue was static at A$6.9 billion.
The bottom line was affected by costs of bedding in new businesses and setting up new facilities.
Chief executive John Cullity said the company had been through a year of consolidation as it looked to set the platform for future earnings growth.
"The year saw us complete several strategic acquisitions building out both our Healthcare and Animal Care businesses."
He said the company had spent A$93.6m on buying new companies and taking full control of the Australian based Terry White chemist retail chain, as well as buying several smaller operators. It also had one-offs costs of more than A$11m from bedding in the new businesses and some restructuring
The company has just started a five-year supply contract to the bulk retailer Chemist Warehouse, which is expected to give a billion dollar boost to group revenue.
"We're confident we have set the platform for solid growth into next year and beyond from a number of the initiatives we've taken," Mr Cullity said.
Ebos has a wide range of well-known businesses in wholesale pharmaceutical supply, retail chemist shops, health supplements such as Red Seal, and animal care such Black Hawk dog food and the Animates retail chain.
Earlier this year Ebos raised $175m to pay off debt and fund future acquisitions.
Mr Cullity said the company had a "warchest" of up to A$350m for future acquisitions, and there was an an "attractive pipeline of potential acquisitions", with opportunities in healthcare consumer brands, medical devices and consumables, pharmacy expansion and animal care.