Ebos Group Limited

Thank you for standing by and welcome to eBoss Group Limited FY26 Full Year Results Conference Call. At this time, all participants are in listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, you will need to press star 1-1 on your telephone keypad. You can cancel your request by pressing star 1-1 again. 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, EVOS 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 Alistair Gray, our Group CFO. Before commencing, I'd like to draw your attention to the disclaimer on page two 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 through today's presentation.

Thanks, Cameron. Good morning, everyone. There are three messages to take away from today's result. First, we delivered on our commitments while completing a major phase of investment. Revenue increased 9.9% to $13.5 billion and underlying EBITDA increased 5% to $614 million, both within guidance. We also completed our multi-year $360 million distribution centre renewal program with all facilities now in operation. Second, each division has clear growth opportunities in FY27. Across Symbian and healthcare distribution, retail pharmacy brands, medical technology and animal care, we have identified initiatives that support continued earnings growth. Each of these initiatives is underpinned by two common macro themes. Strong underlying growth in care for an aging human and pet population and eBoss's competitive advantages of scale and sector leadership. As we laid out at Investor Day, 85% of our EBITDA is derived from businesses where we are number one or number two in our sector. Third, we are not pausing. We continue to improve the portfolio with two great bolt-on acquisitions in the last six months and the capacity for more. You may recall over the last few years, we've deliberately shifted the portfolio towards higher growth, higher return businesses. In FY26, we continue this theme. with eight bolt-on acquisitions that improved the quality of our portfolio. Now, importantly, with about 30% lower capital requirements going forward, we have greater flexibility to continue investing in these attractive growth opportunities. Taken together, we enter FY27 with earnings momentum, a completed investment cycle, and additional capacity to deploy capital. The team have confidence in their ability to continue creating value for shareholders. Let me turn to slide four and our financial guidance and metrics At the start of the year, we set clear financial targets across EBITDA, capital expenditure, depreciation and amortisation, financing costs and leverage, and we've delivered on these as a group and in each division. Despite fuel costs and foreign exchange headwinds during the year, we delivered against our stated guidance ranges, noting that EBITDA guidance was revised in April following the disruption in the Middle East. Just as importantly, we continue to make progress against the strategic priorities we outlined at our investor day. In Symbian and healthcare distribution, we've now completed the distribution centre renewal program with all facilities operational. In retail pharmacy brands, we expanded the network with the acquisition of MediAdvice, which strengthened healthcare services capabilities and continued to improve digital transactions. We were up 30% and our own brand performance. In Maple Technology, we broadened our therapy and product portfolio with 18 new supply partnerships, and we grew the business both organically and through targeted acquisitions. And in Animal Care, we expanded innovation, manufacturing, and product development, including Kiwi Kitchen's triumphant return to the U.S. market. The next slide explains the key earnings movement during the year. You can see here that underlying EBITDA increased by 5%. Despite approximately $22 million of fuel and foreign exchange headwinds, importantly, the underlying performance of the business remains solid, generating $50 million more in avatar. The fuel headwinds we called out during the half were contained through operational improvements, fuel levy pass-through, and active contract management. The impact was about $5 million, which was at the lower end of our previous expectations. Also during the half, you'll have seen the Australian dollar strengthened against many currencies and hit a 13-year high against the New Zealand dollar. This had a meaningful effect on translated earnings for the group and purchasing costs predominantly within the medical technology division. Across the portfolio, healthcare grew at a data buy net 3.2% and animal care by a net 11.6%. So while external factors affected the reported growth rate, they didn't change our underlying trajectory. And that gives us confidence as we enter FY27. On the next slide, I'd like to highlight one of the most significant strategic milestones we achieved during the year. With the DC Renewal Program, I want to pay tribute to the teams across the business, and particularly the Symbian Healthcare and Distribution Division, who have successfully brought this program to completion and done so seamlessly. Our $360 million Distribution Centre Renewal Program is the largest infrastructure investment in EVOS's history. Think of this as a long-term investment in the capability, capacity and efficiency of our network, positioning us to serve the need for medicines across Australia and New Zealand for years to come. Just as importantly, the focus now shifts from investment to benefits. We're already seeing productivity gains at Kemp's Creek, with the site currently operating around 20% more productively than Greystains, the facility it replaced. Just to give you a sense of magnitude of what Kemp's Creek does, every morning, It converts about 16,000 SKU lines in storage to 8,000 daily customised totes and then delivers in hours to pharmacies and hospitals across New South Wales. But there's more productivity opportunity ahead. We continue to target a 30% productivity uplift by the end of FY27, and I was glad many of you got a chance to meet the Kemp's Creek team at the recent Investor Day and see this opportunity up close. The completion of this program also materially lowers our capital requirements, and CapEx is expected to normalize around $100 million in FY27. Now that matters because lower CapEx supports stronger free cash flow, improving returns, and greater balance sheet flexibility. A good example of that flexibility is in contract logistics. Over several years, we've invested in building a national healthcare logistics network. That capability is now supporting customer wins, share gains, and double-digit goal growth. that the Perth HCL facility is now up and serving our customers. With the distribution centres now complete and operational, we close the chapter on this program and we look ahead. Speaking of looking ahead, the final point I'd like to touch on before moving into the divisions is M&A. On the next slide, you can see that disciplined capital allocation remains a core part of the EVOS strategy. During FY26, we deployed across approximately $121 million across eight Bolton acquisitions that strengthened capability, expanded market positions, and increased our participation in attractive growth categories. Now, in the last six months, the two acquisitions were Poringa Pet Foods and Catalyst. Poringa extends our presence in premium pet nutrition and gives us exposure to the fast-growing fresh and chilled pet food category. We have a great track record of bringing our strong brands like Blackhawk and VitaPets to new formats, and this continues that theme. Catalyst is another great example of bolt-on strategy, excuse me, bolt-on M&A in action. We have an existing supply relationship that was very strong, and with the benefit of this Catalyst acquisition, it's extended that into new markets across Southeast Asia and Hong Kong, particularly in aesthetics and reconstruction. What's pleasing is that these acquisitions are consistent with our strategy of high growth, high return markets, and expected to be both EBITDA and EPS accretive. Looking ahead, our approach continues unchanged. We will stay disciplined, but where we see privileged access to attractive opportunities are supported by our market positions, relationships and balance sheet capacity. We have about $150 million of additional capacity to support our boss-only agenda. Let me now take you through the divisional highlights in financial performance. And on slide 9, you can see that healthcare delivered another resilient result revenue increased 8.5% to $12.6 billion and EBITDA increased 3.2% to $516 million despite fuel and foreign exchange headwinds. Now this result was supported by growth across community pharmacy, hospital medicines, medical technology and contract logistics. As I mentioned, this result is underpinned by an ageing population which increases healthcare demand, growth in specialty and high value medicine and a larger role for pharmacy and primary care. Sales of high-value medicines and GLP-1 demand also continued to grow at double digits. So while FY26 was an important year of execution, we believe each of our divisions are well positioned for the next phase of growth. Let's start with Symbian and Healthcare Distribution. Here we delivered another solid result while completing a significant period of operational change, as I just mentioned. While the team has successfully executed multiple slight transitions, they continue to grow the business What you may not realise is that Symbian now serves a million units a day to Australians, the vast majority through our automated eastern seaboard facilities. Within community pharmacy, revenue increased 10.2% and gore increased 4.3%, supported by continued growth in GLP-1s and other high-value medicines. Margin pressure remained a feature of the market, but gore margins were stable across the second half at 8.6%. Looking forward, Increased CSO funding should provide some support, although it needs to be netted against the medicine tiering changes, as well as continued competitive conditions. Hospital medicines, consumables and other also delivered growth, supported by record hospital sales, expansion in aged care and healthcare channels, and continued momentum in medical consumables. Contractual Logistics was once again a standout performer. Our gore increased 13.1%, reflecting customer growth and the benefits of the investments we've made over several years in our healthcare logistics capability. The priorities in FY27 are straightforward. Increase utilization, improve productivity, and leverage on our national footprint within contract logistics. Moving now to retail pharmacy brands. Here, we've had another strong year where we continue to expand both our scale and capability. Network sales reached almost $2.9 billion, supported by like-for-like growth of 7.6% across the Terry White King Mart network and dispensary sales growth of 8.5%. Importantly, this growth reflects the quality of the network and the performance of existing stores, not just network expansion. Total network stores increased to 780, driven by the addition of MediAdvice, and continued growth across our other banner groups, including Sincotta. Healthcare services remained a key differentiator, During FY26, care clinics delivered more than 1.2 million health services, reinforcing the network's leading position in pharmacy-delivered healthcare. We're also seeing encouraging progress across our own brands, digital engagement and retail media. The MyTWC app is a great demonstration of this, with the app processing 1.7 million transactions. Now that's up 37% on the prior year. Network sales of our own brand increased 11% during the year and these initiatives are helping broaden the earning space for both the network and our pharmacy partners. Looking ahead, our focus remains on improving store margins, increasing health service participation, growing digital engagement and expanding our own brand penetration. I turn now to medical technology and here revenue increased 5.5% or 8.4% on a constant currency basis, supported by a combination of organic growth and acquisitions. Growth was broad-based across the portfolio and reflected high procedure volumes, therapy expansion and ongoing innovation. Across ANZ, we saw strong growth in neurosurgery, neurovascular intervention and urology. And in Southeast Asia and Hong Kong, growth continued across spine, orthopaedics, cardiology and ophthalmology, partly offset by softer capital equipment activity compared with a strong prior year. Biologics remains one of our most attractive growth opportunities. During the year, we expanded solution development activity and extended into adjacent procedures, which creates additional pathways for growth. Across EMT, we also completed four acquisitions that expanded coverage across oncology, orthopaedics, plastics and aesthetics. These acquisitions continue our strategy of building capability in attractive growth markets. Looking forward, we see significant opportunities to expand therapy participation, increase biologics exposure, and selectively grow across Southeast Asia. Now let me turn to animal care, which once again delivered a strong result and continues to outperform many of the markets in which it operates. Revenue increased 34.6% to $907 million. and EBITDA increased 11.6% to $138 million. The result was supported by the SVS acquisition, but also by continued growth within Lippard and ongoing share gains across branded products. In fact, branded revenue increased 6.7%, supported by innovation, premiumisation and new product development. On the next slide, you can see the clear linkage between our manufacturing capabilities, and new product development across our hero brands, driving the organic growth within the branded portfolio. Wholesale performance also continued to benefit from greater scale in customer growth, with SVS growth accelerating under eBoss stewardship. Gore increased 13.1%, showing the quality of growth across the portfolio, and margins were arithmetically affected by the addition of the lower margin wholesale business, SVS, but the segment continued to deliver strong earnings growth. Our strategic focus during FY26 was increasing our participation in the premium pet nutrition categories, and the acquisitions of NextGen Pet Foods and Perringa did this by expanding our manufacturing capability and our exposure to the higher growth segments including fresh and chilled pet food and air and freeze-dried treats. As we move into FY27, our animal care priorities remain centred on innovation, vet channel growth, premium nutrition and extracting value from our recent acquisitions. I'll now hand over to Alastair, who's going to take you through the key movements in the Group Financials.