EBOS H1 FY2025: Revenue Falls to AUD 5.99B, NPAT Drops 18.9%
EBOS Group Limited has reported a 9% drop in revenue and an 18.9% fall in net profit for the first half of fiscal 2025, yet it maintains its interim dividend at 57 NZ cents per share.
- Revenue down 9% to AUD 5.99 billion for H1 FY2025
- Net profit after tax declines 18.9% to AUD 110.5 million
- Underlying EBITDA decreases 7.1% to AUD 291 million
- Interim dividend maintained at 57 NZ cents per share
- Dividend reinvestment plan offers 2.5% discount on shares
EBOS Group Faces Revenue and Profit Contraction
EBOS Group Limited, a key player in the healthcare and pharmaceuticals sector, has released its interim financial results for the six months ended 31 December 2024. The company recorded a 9% decline in revenue to AUD 5.99 billion compared to the same period last year. This contraction reflects ongoing market pressures and operational challenges within its core markets of Australia and New Zealand.
Alongside the revenue drop, EBOS reported a net profit after tax (NPAT) attributable to owners of AUD 110.5 million, down 18.9% from the prior corresponding period. Earnings before interest and tax (EBIT) also fell by 12.4% to AUD 207.3 million, highlighting the impact of both reduced top-line performance and cost pressures.
Underlying Earnings and One-Off Adjustments
The company’s underlying EBITDA, which excludes non-cash amortisation related to the LifeHealthcare acquisition and one-off M&A and restructuring costs, decreased by 7.1% to AUD 291 million. These adjustments provide a clearer view of operational performance, though the decline signals that EBOS is navigating a tougher trading environment.
EBOS’s management has been transparent about the impact of one-off expenses, including M&A transaction costs and site transition charges, which collectively weighed on reported earnings. Despite these headwinds, the company’s underlying net profit after tax fell by 14.1%, indicating some resilience in core operations.
Dividend Policy and Shareholder Returns
In a move that will reassure investors, EBOS declared an interim dividend of 57.0 NZ cents per share, unchanged from the previous corresponding period. This dividend is fully franked to a 30% tax rate and will be payable on 21 March 2025. The company also confirmed the operation of its dividend reinvestment plan (DRP) with a 2.5% discount on shares issued under the plan, encouraging shareholder participation.
The steady dividend amid declining profits suggests EBOS is prioritising shareholder returns and confidence, even as it contends with a challenging market backdrop. The group’s balance sheet remains robust, with net tangible asset backing per share holding steady at AUD 4.42.
Outlook and Strategic Considerations
While the interim results reflect a period of contraction, EBOS’s management will likely focus on operational efficiencies and strategic initiatives to arrest the decline. The company’s equity stake in Animates NZ Holdings Limited and other associates continues to contribute modestly to income, though these remain immaterial to the group’s overall performance.
Investors will be watching closely for updates on cost management, potential new acquisitions, and market conditions in the coming quarters. The company’s ability to sustain dividends while navigating profit pressures will be a key barometer of its financial health and strategic direction.
Bottom Line?
EBOS’s steady dividend amid profit declines signals cautious confidence but underscores the need for strategic agility ahead.
Questions in the middle?
- How will EBOS address the ongoing revenue and profit declines in the second half of FY2025?
- What impact will market conditions in Australia and New Zealand have on EBOS’s growth prospects?
- Could further acquisitions or divestments reshape EBOS’s financial trajectory?
