The EBOS Group Ltd (ASX: EBO) share suffered a dramatic drop on Wednesday as panicked investors sold off shares following the company's FY25 financial results announcement.
At the close of the ASX on Wednesday, EBOS Group's shares dived 14.69% to $30.19 per share. The sell-off also dragged down the company's share price 8.43% lower over the year.
The ASX 200 healthcare stock is the largest pharmaceutical wholesaler and distributor across Australia, New Zealand, and Southeast Asia. The company provides pharmaceutical and wellness products to community pharmacies, public and private hospitals, day surgeries, general practices, aged care facilities, and specialist clinics.
For context, the S&P/ASX 200 Health Care Index (ASX: XHJ) closed 0.81% higher for the day on Wednesday. The S&P/ASX 200 Index (ASX: XJO) closed 0.28% higher.
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EBOS Group's FY25 results
Here are the key numbers:
- Group revenue declined 7% to $12.2 billion
- Group EBITDA fell 6.3% to $585 million
- NPAT dropped 16.8% to $258 million
- Directors declared a final dividend of NZ$0.615 per share
Here's what happened
For the year to 30 June 2025, EBOS Group reported a 7% drop in underlying group revenue to $12.2 billion. It also posted a 6.3% decline in EBITDA to $585 million and NPAT was down 6.3% to $258 million. The company's results reflected the end of the $2 billion contract to supply the Chemist Warehouse Australia (CWA).
When excluding the CWA contract, the Group's underlying revenue grew 12.0%, underlying EBITDA increased 7.5% on FY24. The FY25 EBITDA result is in line with EBOS Group's guidance range of $575 million to $600 million.
Directors declared a final dividend of NZ 61.5 cents per share, maintaining the dividend at the same level as FY24. This brings the full year dividend to NZ 118.5 cents per share with a dividend payout ratio of 83.8% on an underlying basis.
"The increased payout ratio reflects the Board's confidence in the Group's growth outlook and overall financial capacity," EBOS Group said.
The Dividend Reinvestment Plan (DRP) will be operational for the final dividend. Shareholders can elect to take shares in lieu of a cash dividend at a discount of 2.5% to the volume weighted average share price.
The record date for the dividend is 5 September 2025, and the dividend will be paid on 24 September 2025. The dividend will be imputed to 25% for New Zealand tax resident shareholders. It will be fully franked for Australian tax resident shareholders.
In FY26, the Group is targeting Underlying EBITDA of $615 – 635 million.
Management commentary on the results
EBOS Group chair, Elizabeth Coutts, said:
Despite a material adjustment to business volumes, EBOS continued to deliver a strong underlying performance. The Board has maintained the dividend at the same level as FY24 and the increased payout ratio reflects the Board's confidence in the Group's growth outlook and overall financial capacity.
