Ebos Limited EBO

[ratkin]

*Key assumption is that EBOS earns similar EBIT out of all products and that the contract terms are similar too.

The contract terms will not be the same otherwise Sigma would have re-signed. EBOs have obviously undercut them to such an extent it was no longer viable for Sigma to compete. Question is how low have EBOS had to go.

[winner69]

Its quite interesting looking at the opposite end of things, instead of on Ebos's end, the company that lost the contract was Sigma Healthcare, which dropped 40% on the day or about $343 million from their Market Cap. Given it was a smaller company compared to Ebos then I imagine Ebos will get better margins. Sigma Has a EBIT margin of 2% while Ebos has EBIT margin of 3%, so out of the same deal Ebos would earn 50% more for the bottom line. Based on the disclosures by Sigma the impact is about $30 million EBIT, given Ebos's better margins then it would likely be worth $45 million in EBIT , which will give it a 20% boost in EBIT for Ebos starting from next year when the deal starts.

*Key assumption is that EBOS earns similar EBIT out of all products and that the contract terms are similar too.

It wasn't just lsoing the contract that caused that $343m drop in market cap .....they also said things were SLOWING Down in Australia and demand falling

Maybe the $1 billion might ne less come this time next year

[percy]

It wasn't just lsoing the contract that caused that $343m drop in market cap .....they also said things were SLOWING Down in Australia and demand falling

Maybe the $1 billion might ne less come this time next year

With the growth CW are achieving possibly more.?

[silverblizzard888]

The contract terms will not be the same otherwise Sigma would have re-signed. EBOs have obviously undercut them to such an extent it was no longer viable for Sigma to compete. Question is how low have EBOS had to go.

Its fair to assume the terms would undercut Sigma, though might not be as bad as it would appear, from what their disclosure says they wanted 'adequate return on invested capital' so probably not aggressive terms, but likely not ideal terms for them. It would have likely been still viable but they probably played hard ball and Ebos probably came round the corner and made a straight forward offer and took the contract.

It wasn't just lsoing the contract that caused that $343m drop in market cap .....they also said things were SLOWING Down in Australia and demand falling

Maybe the $1 billion might ne less come this time next year

From their disclosure they had already factored in the 'softer market conditions' in FY18/19, which they are still the supplier of CW. I only took the difference from the softer figure estimates, which they also start lowering operating cost for the second half of FY19 so that will have made up for any difference for the softer market conditions.

Well Ebos estimates a billion in the first year so maybe it could be more or less.

[JayRiggs]

EBO closing at a record high of $21
I'm predicting a 36c final dividend tomorrow.
Maybe we'll see an announcement of a new big acquisition tomorrow? It's been a bit over a year since we've had a big acquisition.

I've noticed that earlier this year, EBOS have made 2 small under the radar acquisitions with Grans and Ventura Health.
https://www.ebosgroup.com/about-us/i...our-portfolio/
https://www.symbion.com.au/our-busin...entura-health/

EBOS have grown so big that these acquisitions don't even make it to the NZX announcements!

Anyway, good luck to all holders tomorrow for the FY18 result!

[percy]

EBO closing at a record high of $21
I'm predicting a 36c final dividend tomorrow.
Maybe we'll see an announcement of a new big acquisition tomorrow? It's been a bit over a year since we've had a big acquisition.

I've noticed that earlier this year, EBOS have made 2 small under the radar acquisitions with Grans and Ventura Health.
https://www.ebosgroup.com/about-us/i...our-portfolio/
https://www.symbion.com.au/our-busin...entura-health/

EBOS have grown so big that these acquisitions don't even make it to the NZX announcements!

Anyway, good luck to all holders tomorrow for the FY18 result!

Yes I think another huge acquisition must be overdue too.
Adding a billion dollars of revenue with the supply agreement with The Chemist Warehouse was a rather big deal.

[ratkin]

EBOS will hold a live webcast at 11.30am NZST (9.30am AEST) on 23 August 2018
which can be accessed via following the attached link:
https://edge.media-server.com/m6/p/mgiqok72

Hopefully it all good news

[percy]

I think today's result is "modest".
No revenue growth,however a great deal better margins with their own products, such as the incredible success with Black Hawk dog and cat food.
Still an extremely well run business.

[LAC]

Very happy with that result.
The Hep C percentage of total revenue was brought up in ST once before, so wasnt a shock but over time they say Hep C will be almost non existent in NZ and Aust from a recent article. So I guess that part will continue to decline. I am really liking the fact their own brands are starting to materialize into something more significant in terms of earning. Hoping for a good acquisition which will drive revenue up again.

[RTM]

Can someone help me out ? I'm not a financial wiz.
Why / how can the NTA/Share be negative ? See below for EBOS. -56.47 cents

Is this a reflection of the level of borrowings that a company has.
Sorry if this is a dumb question. Data from ANZ Securities.

EBO.NZX - Ebos Group Limited Ordinary Shares

Total Issue:
152,539,304
Market Capitalisation:
$3,203,325,384 (@2100)
Earnings/Share:
92.53 cents
Price/Earnings Ratio:
22.7
NTA/Share:
-56.47 cents
Dividend/Share:
NZD 66 cents
Dividend Yield:
3.14%
1-Week Range (Low - High):
2039 - 2100
4-Week Range:
2000 - 2100
26-Week Range:
1730 - 2100
52-Week Range:
1700 - 2100