EBOS Group has completed its largest infrastructure investment program in history and is now positioned to deliver the next phase of value creation for shareholders, following the release of its full year results to 30 June 2026. Revenue grew 9.9% to $13.5 billion and underlying EBITDA expanded 5.0% to $614 million, representing solid top-line momentum despite headwinds from elevated fuel costs and foreign exchange movements.
The completion of the $360 million distribution centre renewal program over four years stands out as the most significant achievement in the results. All major facilities are now operational, marking the end of EBOS’s peak capital investment cycle. This milestone is crucial for investors because it signals that the Group can now shift focus from building infrastructure to optimising it, which should unlock stronger free cash flow generation and improved returns on capital in coming years.
The underlying net profit after tax of $250 million declined 3.1% from the prior year, which initially appears concerning but reflects the expected impact of higher depreciation and amortisation associated with the new facilities, plus increased financing costs from the investment program. This is a temporary headwind that should ease as the company operates the new infrastructure more efficiently. Statutory net profit grew 4.7% to $225 million, suggesting that one-off items and non-underlying factors had a broadly positive effect on reported earnings.
EBOS maintained strong financial discipline during its investment cycle. Leverage remained at 2.1 times, comfortably within the Group’s target band of 1.7 to 2.3 times, while return on invested capital stood at 12.8%, down just 20 basis points from the prior year despite the elevated capital base. The Board elected to maintain the final dividend at NZ 61.5 cents per share with a payout ratio of 84.5% of underlying NPAT, demonstrating confidence in future cash generation while returning value to shareholders.
The Group backed up its infrastructure investment with strategic acquisitions during the year, including Paringa Pet Foods and K-Talyst, both positioned in higher-growth and higher-return market segments. These acquisitions complement the newly completed distribution infrastructure and position EBOS to capture incremental value across its Healthcare and Animal Care divisions.
Investors should focus on free cash flow generation in the coming year as the new distribution infrastructure reaches full optimisation and monitor the integration progress of recent acquisitions. The combination of improved cash conversion and lower capital requirements creates the foundation for potential dividend growth and additional shareholder returns if management executes operational improvements as planned. This announcement is classified as price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About EBOS Group Limited (ASX: EBO)
EBOS Group Limited is the largest pharmaceutical wholesaler and distributor across Australia, New Zealand, and Southeast Asia. The company provides pharmaceutical and wellness products to community pharmacies, hospitals, and healthcare facilities, and also operates an animal health product wholesale and retail business. The company is headquartered in Docklands, Australia and generates the majority of its revenue from pharmaceutical distribution services to community pharmacies and institutional healthcare providers.
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