Full Year 2026 EBOS Group Limited Earnings Call Transcript
Key Points
- Ebos Group Ltd (ASX:EBO) delivered on its FY26 guidance with revenue up 9.9% to $13.5 billion and underlying EBITDA up 5% to $614 million, despite fuel and FX headwinds.
- The completion of the $360 million distribution center renewal program positions the company for long-term efficiency gains, with Kemps Creek already operating 20% more productively and a target of 30% uplift by FY27.
- Capital expenditure is set to normalize to approximately $100 million in FY27, down from $145 million, which will significantly boost free cash flow and provide greater balance sheet flexibility for growth investments.
- The company continues to execute a disciplined M&A strategy, deploying $121 million across 8 bolt-on acquisitions in FY26, all expected to be EBITDA and EPS accretive, with about $150 million of additional capacity available.
- Animal Care delivered strong growth with revenue up 34.6% and EBITDA up 11.6%, driven by the SVS acquisition and continued share gains in branded products, including a 6.7% increase in branded revenue.
- Healthcare services and digital engagement are expanding, with Care Clinics delivering over 1.2 million health services and the My TWC app processing 1.7 million transactions, up 37% year-on-year.
- Ebos Group Ltd (ASX:EBO) faced approximately $22 million in fuel and foreign exchange headwinds during FY26, which dampened reported EBITDA growth, particularly in the Medical Technology division.
- Community pharmacy margins remain under pressure due to competitive dynamics, with gross margins stable at 8.6% in the second half but overall EBITDA margin slightly down at 4.6%.
- The transition to a 4-tier medicine pricing system has been a mild negative in the first month of FY27, partially offsetting the benefits of increased CSO funding.
- The Chemist Warehouse New Zealand wholesaling contract is scheduled to roll off at the end of calendar 2026, which will impact EBITDA by mid- to high-single-digit millions, though it is only about 1% of group EBITDA.
- Medical Technology's EBITDA in New Zealand and Southeast Asia declined 10% due to FX translation and softer capital equipment sales, which were unusually high in the prior year.
- Depreciation and financing costs are expected to remain elevated in the first half of FY27 as the company annualizes recent investments, which will pressure near-term earnings growth.
Thank you for standing by, and welcome to EBOS Group Limited FY26 Full Year Results Conference Call. (Operator Instructions) I must advise you that this conference is being recorded today, the 19th of August 2026.
I'd now like to hand the call over to your first speaker today, Mr. Cameron Sinclair, Head of Investor Relations, EBOS Group. Please go ahead, Cameron.
Good morning, everyone, and thank you for your attendance today. My name is Cameron Sinclair, Head of Investor Relations. I'm joined today by Adam Hall, our Group CEO; and Alastair Gray, our Group CFO.
Before commencing, I'd like to draw your attention to the disclaimer on page 2 of the presentation. The results are expressed in Australian dollars unless otherwise noted, and the presentation refers to both statutory and underlying results. The commentary this morning is predominantly based on our underlying results, and a reconciliation is included in the appendix.
I'll now hand over to Adam to take you
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