Ebos Group Limited Analysis

Overview

Formerly Early Bros Dental & Surgical Supplies Ltd, the company's business was restructured in the 1990s. The major focus now is the marketing of medical consumable products, and growth has been assisted by acquisitions on both sides of the Tasman since 1996. These included Richard Thomson & Co, Health Support Ltd, Maygar Medical, Medic Corporation, Nature's Kiss creams and the Australian Allersearch range of asthma products.

In October 2002 it announced a joint venture of its former Medic Scientific division with Global Science, giving EBO 47.5% of the new entity. In 2004, the company acquired healthcare product distributor Vernon-Carus and the Melbourne based company, Stelmara Medical.

In January 2005 it increased its stake in Global Science from 47.5% to 67% and in March that year acquired the Australian business of Quantum Scientific. In December 2005 it raised its shareholding in Global Science to 100%. Global Science also acquired 100% of Scientific Supplies Ltd - a NZ-based specialty supplier of chemicals to the scientific market.

In August 2007, it acquired pharmaceuticals distributor PRNZ for $86.3m in cash and shares. In July 2008 it acquired MedBio Scientific.

In April 2009, EBO entered into a new issuance and share buyback as part of its profit distribution plan. Under the Profit Distribution Plan shareholders can elect to have the company buy back shares issued to them under the Plan at the issue price of $4.691798 per share.

As a result of shareholder elections the company achieved an off-market buy back of 279,875 shares. Of the total number of bonus shares issued in respect of the 2009 interim profit distribution (of 10.5 cps), 74.1% of shares are being retained with 25.9% electing the buyback option.

The company has elected to cancel all of the 279,875 shares bought back. With the issue of 1,080,305 new shares and the cancellation of 279,875 shares bought back, the total number of shares on issue is now 48,980,799.

On 14 June 2013, shareholders elected to proceed with a pro-rata renounceable Entitlement Offer of 7 new ordinary shares for every 20 existing ordinary shares held on the Record Date. The transaction settlement is expected to take place on or about 5 July 2013.

In November 2015, the company acquired Red Seal, a leading New Zealand natural health product business, for NZ$80 million.

Performance

The following information was extracted from EBOS Group Limited's half year results, released on 25 February 2026:

EBOS delivers solid HY26 result

Executing with discipline, confidence in H2 FY26 EBITDA uplift

25 February 2026 – EBOS Group Limited today reports its interim results to 31 December 2025 (HY26) delivering strong revenue growth of 13.0% and disciplined execution. FY26 EBITDA guidance is reaffirmed with further improvement expected as productivity and utilisation continue to increase and ongoing solid demand across key healthcare and animal care markets.

Underlying EBITDA increased 3.2% to $300 million, consistent with guidance and commissioning of strategic investments. Healthcare EBITDA grew 1.3% to $254 million, with strong revenue momentum and disciplined cost management. Animal Care EBITDA increased 15.1% to $68 million, driven by good branded performance, cost management and the successful acquisition of SVS.

EBOS retains confidence in H2 FY26 EBITDA delivery, underpinned by opportunities in Healthcare from progress in the DC renewal program, additional runway from the newly acquired MediAdvice pharmacy network banner, benefits from recent Medical Technology acquisitions and a strong product pipeline in Animal Care.

Growth investments

During H1 FY26, EBOS continued to execute against its near-term priorities: completing major network investments and selectively deploying capital for inorganic opportunities to support growth. The DC renewal program is near operational completion, with six of the eight DC renewal sites now completed. The largest and most complex site, Symbion Kemps Creek in Sydney, was successfully completed in October 2025, on-time and on budget. The remaining DC sites are on track for operational completion in FY26, with post-commissioning workstreams ongoing into H1 FY27, including IT systems and optimisation. Full network benefits expected to flow through progressively over FY27 and FY28. The Group completed several transactions that are expected to contribute approximately $80 million in revenue on a full year basis, at a total upfront payment of approximately $70 million. These transactions expand EBOS’s position into key channels in Animal Care, Medical Technology and Retail Pharmacy, leveraging existing operational capability. Each transaction is expected to be immediately EPS accretive and deliver ROCE above the Group’s hurdle rate over the medium term. The pipeline remains active.