John Cullity
Market Cap (AUD): 3.64B
Sector: Health Care
Last Trade (AUD): 22.5 +0 (+0%)
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1. About

EBOS Group is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It is also a leading Australasian animal care products marketer and distributor. With more than 3,000 employees in 52 locations across Australasia, EBOS Group is a major contributor to the healthcare of millions of people throughout the region and a leader in animal care. The Group’s businesses generate a combined annual revenue exceeding NZ$7 billion, with 5.4 M orders coming from over 38,000 customers.

2. Business model


The Company operates the following divisions:[1]



Revenue ($000)

% of Revenue

% of profit (before Int,Tax, Depn & Amort)

Profit drivers[2]






Healthcare remains the core business of EBOS Group and once again performed strongly, generating a 13% increase in EBITDA to $235.9 M.

Australian revenue declined 1.7% due to lower hepatitis C medicines sales, key investments including HPS and a full 12-month contribution from the Terry White Group, contributed to earnings growth and demonstrate the benefits of our diversified portfolio of healthcare businesses

New Zealand Healthcare business continues to deliver solid results, increasing revenue by 6.2% and EBITDA up 4.6%, driven by Red Seal’s strong New Zealand performance in toothpastes, teas and supplements and the acquisition of Gran’s Remedy in March 2018

Animal Care





EBOS Group’s Animal Care segment continued to perform well with Group’s Black Hawk and Vitapet brands delivering strong revenue growth. The Animal Care revenue declined 2.7% for the year, principally due to the business ceasing sales of low-margin wholesale products to a major Australian retail chain and discontinuing sales of other products upon the introduction of Black Hawk into New Zealand. The business has strategically realigned its focus on developing its own brands to drive greater margin and shareholder value






3. Strategy


Key strategies include:[3]


Investing for Growth

  • Acquisitions – Group has a successful track record of deal execution
  • Internal Capex – Investment to lift productivity, manage cost and deliver better customer service


Leading Market Positions

  • Group aim to have positions of scale in the markets EBOS operate in and maximise opportunities across our wide range of businesses wherever possible


Disciplined Capital Management

  • Cash generation to drive scope for further investment which allows for dividends paid in the range of 60-70% of Net Profit After Tax
  • Acquisitions focused on improving Group returns on capital employed

4. Markets



Industry (Australia)

Industry Revenue (2018)

Annual Growth (14-19)

Pharmaceuticals Wholesaling

$14 billion



$16 billion


Medical and Scientific Equipment Wholesaling

$18 billion


5. Competition


Major competitors include:[5]


  • CVS Health Corporation (NYSE : CVS)
  • Walgreens Boots Alliance (NASDAQ : WBA)
  • Express Scripts Holding Co. (NASDAQ : ESRX)
  • McKesson Corporation (NYSE : MCK)

6. History



Early Brothers Trading Co. Ltd was founded



Early Brothers Trading Co. Ltd and Oral Supplies merged to provide medical and dental supplies to the New Zealand market  



Early Brothers & Oral Supplies was listed on the NZ Stock Exchange as EBOS Dental & Surgical Supplies Ltd



EBOS Dental & Surgical Supplies Ltd officially became EBOS Group Ltd



EBOS commenced trading in Australia as an orthopedic specialist sales and marketing company



EBOS acquired Kempthorne Medical Supplies Ltd – NZ’s oldest medical company



EBOS acquired the largest private medical wholesaler in NSW, Richard Thompson & Co, and entered the Australian market as a mainstream medical supplier



EBOS Healthcare was formed



EBOS acquired Medic Corporation, a sales and marketing organisation based in Wellington which specialised in representing medical, consumer, dental and scientific brands, and transformed EBOS into the largest independent healthcare supply company in NZ



EBOS completed the acquisition of Health Support Ltd (now Onelink) and Nature’s Kiss including its hero retail brand, Anti-Flamme



EBOS took on more scientific businesses, acquiring Global Science in New Zealand and Quantum Scientific in Australia and expanding its existing Medic Scientific business



EBOS acquired leading NSW-based medical wholesaler Vital Medical Supplies, as well as the leading Tasmanian medical wholesaler Tasmed Pty Ltd, making EBOS the leading Australian medical wholesaler in the primary care market



EBOS acquired NZ pharmaceutical wholesaler ProPharma, and third-party logistics provider Healthcare Logistics, from Zuellig



EBOS Group revenues exceeded $1 billion for the first time



EBOS divested its portfolio of scientific businesses in NZ and Australia to the number two global scientific supply company based in the USA



EBOS acquired Masterpet Corporation. Established in 1954, Masterpet was a successful animal care business in Australia and NZ. EBOS also acquired 50 percent of the Animates pet store group



Health Support and ProPharma Hospital merge to form One link, a new health supply chain provider in NZ



EBOS acquired Symbion, the leading pharmaceutical wholesaler in the combined pharmacy and hospital markets in Australia



EBOS Group attained a 25% share of Good Price Pharmacy Warehouse (GPPW), a successful discount format brand in the Australian pharmacy market



Symbion Consumer Products and EBOS Healthcare (Consumer) merged to form a new business, Endeavour Consumer Health



EBOS acquired 100 percent of Blackhawk Premium Pet Care Pty Limited, a premium pet care brand sold exclusively in Australian pet stores and veterinary clinics



For the first time, EBOS Group revenues exceeded NZ $6 billion  



EBOS acquires Red Seal, a leading New Zealand natural health products business in key segments including vitamins, minerals and supplements, herbal teas, non-fluoride toothpaste and functional foods including molasses and manuka honey



Chemmart merges with Terry White Group forming Terry White Chemmart, Australia’s largest retail pharmacy network



EBOS Group acquires HPS and becomes the market leader in pharmacy services to hospitals



EBOS acquires Ventura Health, a retail pharmacy management company representing more than 50 pharmacies across Australia.

7. Team


Board of Directors[7]


Mark Waller – Independent Chairman

Elizabeth Coutts – Independent Director

Stuart McGregor

Sarah Ottrey – Independent Director

Peter Williams




Patrick Davies – Chief Executive Officer ( will step down as a Chief Executive Office)[8]

Brett Barons – Executive General Manager, Pharmacy

Andrea Bell – Chief Information Officer

Michael Broome – Group General Manager - Healthcare Logistics

Simon Bunde – General Manager, Group Operations & Strategy

Janelle Cain – General Counsel

John Cullity – Chief Financial Officer (Incoming Chief Executive Officer)[9][10]

Sean Duggan – Chief Executive Officer, Animal Care

Shaun Hughes – Chief Financial Officer[11]

Tim Goldenberg – Group Human Resources Manager

David Lewis – General Manager, Onelink Australia

Stuart Spencer – Executive General Manager, Institutional Healthcare

Andrew Vidler – General Manager, Retail Services

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8. Financials


2018 Full Year Results Presentation


Financial Year 2017/2018 (ended 30 June):[12]



Revenue ($’000)

% Change

Profit (before Int,Tax, Depn & Amort) ($’000)

% Change






Animal Care















9. Risk


Major risks include:[13]


Foreign currency risk management

EBOS is exposed to foreign currency risk arising primarily from the procurement of goods denominated in foreign currencies (US dollar, Thai Baht, Euro and British Pound).

Foreign exchange rate exposures are managed utilising forward foreign exchange contracts EBOS enters into forward foreign exchange contracts to manage the risk associated with anticipated future purchase transactions denominated in foreign currencies in accordance with the Board approved treasury policy


Interest rate risk

EBOS is exposed to interest rate risk as it borrows funds in both New Zealand dollars and Australian dollars at floating interest rates.



EBOS is exposed to liquidity risk as it must invest in significant levels of working capital such as inventory and accounts receivables that can impact liquidity unless they are converted to cash.

EBOS manages liquidity risk by maintaining adequate reserves, banking facilities and reserve banking facilities by continuously monitoring forecast and actual cash flows and matching maturity profiles of financial assets and liabilities.


Credit risk

EBOS is exposed to the risk of default in relation to receivables owing from its Healthcare and Animal Care customers, hedging instruments and guarantees and deposits held with banks and other financial institutions.

EBOS has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults.

Trade receivables consist of a large number of customers, spread across diverse sectors and geographical areas. Ongoing credit evaluation is performed on the financial condition of the trade receivables.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the maximum exposure to EBOS of any credit risk.

EBOS does not have any significant credit risk exposure to any single counterparty. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.