Ebos Limited EBO

[bull....]

see on hotcopper there saying ebos might be interested in paragon care ... pgc

[percy]

Seems a bit odd going from Greencross $3,500 mil [$3.5 bil] down to a $145 mil PGC deal.?
PGC's revenue of $308 mil will not add much to EBO's $12.38 billion revenue.
If it goes through PGC must have an agency EBO want.But not a meaningful acquisition in my opinion.

[bull....]

Seems a bit odd going from Greencross $3,500 mil [$3.5 bil] down to a $145 mil PGC deal.?
PGC's revenue of $308 mil will not add much to EBO's $12.38 billion revenue.
If it goes through PGC must have an agency EBO want.But not a meaningful acquisition in my opinion.

Ebos needs to fill the gap chemist warehouse loss left. not many aquisition targets left in nz or aus for ebos to get.

[bull....]

sigma healthcare has announced merger with chemist warehouse

https://clients3.weblink.com.au/smal...ticleID=431742

potential big competitor to ebos now? ( now you know why chemist warehouse cancelled contract with ebos )

not many healthcare stocks in the space for ebos to replace chemist warehouse loss with .
sigma were interested in paragon care at one stage too . interesting times

[Sideshow Bob]

Nothing to the Paragon rumours.....

http://nzx-prod-s7fsd7f98s.s3-websit...503/409563.pdf

[audiav]

I wonder if there’s a bigger fish out there that could snap up EBO?

[audiav]

I wonder if there’s a bigger fish out there that could snap up EBO?

posed this question a few days ago in case anyone had any insights.
I’ve gone away and done some digging. On a very brief google search there doesn’t appear to be many big pharmaceutical distributors. A couple of listed US ones are Cardinal Health and AmerisourceBergen. This leads me to wonder if a few distributors are privately owned or listed but small.

Getting back to Ebos (disclosure: hold), I’ve been on the frontline or sideline for many years in dealing with some of their subsidiaries. From a customer focus they are blown off the park in NZ by a cooperative rival and multiple sites I know prefer dealing with the cooperative if they can. Makes me wonder what the total NZ market is ie what proportion they aren’t getting (though perhaps they are happy just retaining market share).

Their customer focus is always at the forefront of my mind when I ponder whether I continue to hold into the future. Though not a great reason for making financial decisions lol.

Another thing to consider are a lot of newer (expensive) drugs are MAB’s which usually require cold chain distribution. So being on top of the game for these will be important.

A graph I found of projected global pharmaceutical sales for 2026 has Oceania as the smallest area globally US19B. Southeast and East Asia (excludes China&Japan) third largest at US267B. (EU just above that US295B)That’s when I realised EBO is heading in the right direction if they keep chipping away in that part of the world.

So back to the question about whether a bigger fish could gobble up EBO, it’s theoretically possible though given the small size of current market, may become more attractive if it continues to make inroads in Asia?

[bull....]

posed this question a few days ago in case anyone had any insights.
I’ve gone away and done some digging. On a very brief google search there doesn’t appear to be many big pharmaceutical distributors. A couple of listed US ones are Cardinal Health and AmerisourceBergen. This leads me to wonder if a few distributors are privately owned or listed but small.

Getting back to Ebos (disclosure: hold), I’ve been on the frontline or sideline for many years in dealing with some of their subsidiaries. From a customer focus they are blown off the park in NZ by a cooperative rival and multiple sites I know prefer dealing with the cooperative if they can. Makes me wonder what the total NZ market is ie what proportion they aren’t getting (though perhaps they are happy just retaining market share).

Their customer focus is always at the forefront of my mind when I ponder whether I continue to hold into the future. Though not a great reason for making financial decisions lol.

Another thing to consider are a lot of newer (expensive) drugs are MAB’s which usually require cold chain distribution. So being on top of the game for these will be important.

A graph I found of projected global pharmaceutical sales for 2026 has Oceania as the smallest area globally US19B. Southeast and East Asia (excludes China&Japan) third largest at US267B. (EU just above that US295B)That’s when I realised EBO is heading in the right direction if they keep chipping away in that part of the world.

So back to the question about whether a bigger fish could gobble up EBO, it’s theoretically possible though given the small size of current market, may become more attractive if it continues to make inroads in Asia?

private equity own quite a few distributors.

i see ebos buying

EBOS increases its shareholding in Transmedic to 90%

https://www.nzx.com/announcements/423790

the interesting thing to me and i know they have said they are not in discussions with paragon at this time is that transmedic operates pretty much in all the same countries as paragon.
So im still not ruling out ebos moving on paragon at some stage and merging both paragon and transmedic together to create a asia power centre.
the announcement in regard to paragon said at this point in time so it did not rule out the future. ebos had an interest in looking at paragon back in yr18

[Sideshow Bob]

https://thebull.com.au/18-share-tips-15-january-2024/

SELL – EBOS Group (EBO)
EBOS is an Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It’s also an animal care brand owner, product marketer and distributor. In our view, the company operates in a highly competitive and relatively mature industry. We believe the shares are expensive at this point, so investors may want to consider taking a profit.

[Sideshow Bob]

https://www.nzx.com/announcements/426527

EBOS 2024 Half-Year Results

EBOS ACHIEVES STRONG GROWTH REFLECTING THE BENEFITS OF ITS DIVERSIFIEDPORTFOLIO

Half-Year Highlights
• Revenue of $6.6 billion (up 7.1%)
• Underlying EBITDA of $313.2 million (up 8.3%)
• Underlying NPATof $152.4 million (up 7.6%)
• Underlying EPS of 79.5 cents (up 6.6%)
• Interim dividend declared of NZ 57.0 cents per share (up 7.5%)
• Continued strong performances from both our Healthcare and Animal Care segments withHealthcare Underlying EBITDA up 8.0% and Animal Care Underlying EBITDA up 8.6%
• Stronger Group Underlying EBITDA growth of approximately 10% when normalised to excludethe Chemist Warehouse Australia contract
• Significant investments undertaken in the half, in line with our strategy of investing for growth:
o Increased shareholding in our Southeast Asian medical technology distribution business,Transmedic, to 90%
o Completed the acquisition of Superior Pet Food Co. (Superior), a leading New Zealandmanufacturer and supplier of premium dog rolls
o Capital expenditure of $66 million invested into our operational infrastructure
• ROCE increased by 70 bp to 15.1%, in line with target