EBOS (ASX:EBO) share price on watch after dividend surge

The EBOS Group Ltd (ASX: EBO) share price is one to watch this morning after double-digit earnings growth and an interim dividend surge.

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The EBOS Group Ltd (ASX: EBO) share price is on watch this morning following the company’s half-year results release.

What could move the EBOS share price?

EBOS is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products

This morning, the Kiwi healthcare group provided an update on its performance to 31 December 2020 (1H 2021). EBOS reported “strong momentum” throughout the period with another record result highlighted by double-digit earnings growth.

The EBOS share price will be one to watch today after the company reported group revenue for the half was up 6.3% to $4.7 billion. Underlying earnings before interest and tax (EBIT) also jumped 11.5% to $147.8 million in a strong half for the company.

Statutory net profit after tax (NPAT) surged 13.7% higher to $92.9 million while underlying NPAT was up 14.2% to $94.3 million.

In good news for shareholders, underlying earnings per share (EPS) was up 12.7% to 57.8 cents in 1H 2021. The EBOS share price is also worth watching after the company increased its interim dividend by 13.3% to 42.5 cents.

Based on yesterday’s closing share price of $27.00, that represents a ~3.1% per annum dividend yield.

EBOS reported “very strong” performance across its healthcare and animal care business segments. Healthcare’s underlying EBIT jumped 11.2% with animal care EBIT up 25.6% for the half.

Operating cash flow surged 33.0% higher to $98.7 million, underpinned by strong group performance.

EBOS completed the acquisition of CH2’s vet distribution business for $9 million to boost its market position while also expanding its medical devices business with the recent Cryomed acquisition.

EBOS has continued to increase earnings across both its healthcare and animal care segments in recent years.

Foolish takeaway

The EBOS share price will be one to watch in early trade this morning after a record result for the Kiwi healthcare group. 

Double-digit earnings growth and broadly strong group performance, combined with a 13.3% interim dividend increase, make EBOS worth keeping an eye on today.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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