Ebos 1H sales, earnings growth stall

Ebos 1H sales, earnings growth stall in face of ‘difficult economic environment’

By Hannah Lynch

Feb. 21 (BusinessDesk) – Ebos Group’s first-half sales and earnings growth stalled as the distributor of medical equipment and consumables faced a ‘difficult economic environment’ and costs associated with an acquisition.

Earnings from continuing operations rose 1.1 percent to $11.6 million in the six months ended Dec. 31. Sales fell 0.6 percent to $690 million. Year-earlier profit excludes a one-time gain from the sale of the company’s scientific assets.
The results came “against a background of ongoing reform and tight budgets in public healthcare and a difficult economic environment,” the company said.

Ebos diversified its earnings in December, expanding into animal health products and pet food by buying Masterpet Group for $105 million plus debt. The move was seen as “a logical extension of Ebos Group’s core competencies in sales, marketing and distribution,” it said in a statement to the NZX.

“The Masterpet acquisition will be a significant profit driver going forward,” it said. “In healthcare we expect to see ongoing health sector reforms, however this macro driver will create opportunities for our group.”

“We also see growth opportunities within the broader animal health and veterinary sector,” it said.

The Christchurch-based company will pay a dividend of 13.5 cents per share on April. 20.

The shares are currently trading at $7.06.

(BusinessDesk)

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