ParagonCare Advances Integration and Expands Asia Reach with Somnotec Deal
ParagonCare reported solid FY25 results, progressing well on its complex merger integration and expanding its footprint in Asia through the acquisition of Somnotec Group.
- FY25 revenue of $3.6 billion with $95.2 million underlying EBITDA
- Successful integration of CH2, Oborne, and ParagonCare nearing completion
- Launch of new business units in aesthetics, robotics, and dental
- Acquisition of Somnotec Group to strengthen Asian market presence
- Ongoing debt restructuring with Infinity Retail Pharmacy Group
Solid Financial Performance Amid Complex Integration
ParagonCare Limited (ASX, PGC) delivered a robust financial performance for the 2025 fiscal year, reporting revenues exceeding $3.6 billion and an underlying EBITDA of $95.2 million. These results reflect the successful progress of its ambitious merger integration involving CH2 Holdings, Oborne Health Supplies, and ParagonCare itself. The company’s 3-2-1 strategic initiative, merging three businesses over two years into one cohesive team, is on track, with approximately 90% of integration completed, excluding manufacturing.
Strategic Expansion and New Business Units
Beyond consolidation, ParagonCare has actively expanded its operational footprint and product offerings. The launch of new business units focused on aesthetics, robotics, and dental across Australia and New Zealand signals a diversification strategy aimed at capturing emerging healthcare segments. Additionally, the commissioning of a new Brisbane warehouse, expected to reach full occupancy by April 2026, will enhance logistics capabilities and support growth.
Asian Market Growth Accelerated by Somnotec Acquisition
ParagonCare’s Asian operations continue to perform strongly, underpinned by growth in markets such as Thailand. The recent acquisition of Somnotec Group, a distributor of advanced medical devices across Southeast Asia, marks a significant step in expanding ParagonCare’s presence in Singapore, Malaysia, Indonesia, Thailand, and the Philippines. This move aligns with the company’s vision to become the master franchise holder for Asia Pacific agency arrangements, leveraging Somnotec’s $45 million expected revenue and $6 million EBITDA in FY25 to accelerate regional growth.
Governance and Leadership Transitions
The company also announced key governance updates, including the appointment of Peter Egglestone as an independent non-executive director and the smooth transition of CEO responsibilities from David Collins to Carmen Riley. These leadership changes come as ParagonCare focuses on completing integration and capitalizing on growth opportunities.
Debt Restructuring and Financial Outlook
ParagonCare is actively managing elevated debt levels, partly due to non-payment issues with the Infinity Retail Pharmacy Group, whose outstanding debt has decreased from $57 million to $47 million since June 2025. Negotiations for a payment and debt restructure plan are ongoing. Despite these challenges, the company has secured more efficient financing facilities and projects FY26 revenue between $3.6 and $3.7 billion with EBITDA guidance of $97.5 to $107.5 million, reflecting confidence in continued organic growth, operational efficiencies, and strategic acquisitions.
Bottom Line?
ParagonCare’s integration and expansion efforts position it well for growth, but debt restructuring and full operational harmonization remain key hurdles to watch.
Questions in the middle?
- How will the final stages of integration impact operational efficiency and costs in FY26?
- What are the detailed terms and timeline for the Infinity Retail Pharmacy Group debt restructuring?
- How will the Somnotec acquisition influence ParagonCare’s competitive positioning in Southeast Asia?
