Apiam’s FY25 Revenue Hits $207.6M; Q1 FY26 Sees 3.3% Growth and $0.87/share Deal

FY25, A Year of Transition and Challenges

Apiam Animal Health’s 2025 financial year was marked by mixed results and strategic recalibration. While the company managed a modest 1.4% increase in group revenue to $207.6 million, this fell short of expectations largely due to underperformance in its Clinical Veterinary Services segment, which accounts for three-quarters of total revenue. The segment was hit by a significant drop in diagnostic lab exports to China and softer equine clinic performance amid industry contraction.

Despite these headwinds, the Intensive Animal Veterinary Services segment delivered robust double-digit growth, buoyed by strong feedlot and pig veterinary revenues. However, a $4.5 million pre-tax impairment loss from divesting the Agnes Banks Equine Clinic weighed heavily on statutory results, culminating in a reported net loss after tax.

Strategic Reset and Leadership Changes

In response to these challenges, Apiam appointed Bruce Dixon as Interim Managing Director in June 2025, alongside part-time executive Vita Pepe, both experienced in business turnarounds. They swiftly launched a Strategic Reset Program focused on cost control, operational efficiency, and clinic performance improvements. A dedicated Business Improvement team was established to support underperforming clinics, introducing daily financial performance tracking to enhance accountability and responsiveness.

These initiatives have already yielded tangible results, with all targeted clinics improving profitability and many surpassing company average margins. Additionally, head office redundancies and tighter expense management contributed to a 3% reduction in operating costs within the Clinical Vet Services segment.

Q1 FY26, Signs of a Strong Recovery

The first quarter of FY26 has seen Apiam’s turnaround efforts gain momentum. Group revenue rose 3.3% year-on-year, driven by a 1.3% increase in Clinical Veterinary Services; primarily from companion animal clinics; and a 10.4% surge in Intensive Animal Veterinary Services, led by feedlot growth. Operating expenses declined 3.6%, resulting in a striking 40% uplift in EBITDA, signaling improved operational leverage and cost discipline.

This positive trajectory has reinvigorated Apiam’s growth ambitions, with management actively pursuing acquisition opportunities and greenfield developments to expand its footprint and service offerings.

Acquisition Proposal by Adamantem Capital

In a significant development, Apiam entered into a binding Scheme Implementation Deed with private equity firm Adamantem Capital in October 2025. The proposal values Apiam at an enterprise level of approximately $228 million, offering shareholders $0.87 cash per share, less a potential fully franked special dividend of up to $0.10 per share. Shareholders may also elect scrip alternatives, allowing continued exposure to the business under new ownership, subject to scaleback limits.

The Independent Board Committee, supported by financial and legal advisors, unanimously recommends the Scheme, contingent on the Independent Expert’s favorable opinion. Key insiders, including Interim MD Bruce Dixon and Vita Pepe, who collectively hold around 13% of shares, intend to support the transaction, as does former MD Dr Chris Richards through a call option arrangement.

The Scheme Booklet, including the Independent Expert’s report, is expected to be distributed mid-December, with a shareholder vote scheduled for early February 2026. If approved, the transaction would likely complete shortly thereafter.

Looking Ahead

Apiam’s recent operational improvements and strategic clarity position it well for the next phase, whether as a public company or under Adamantem’s ownership. The Board expresses confidence in the resilience of regional veterinary markets and the dedication of its workforce amid ongoing change.