Medical supplier Ebos posts 38% profit gain to $11.7m

Medical supplies company Ebos has posted a net profit after tax for the six months to December 31 of $11.7 million – up 38% for the same time period in 2008. Earnings per share for the half-year increased 5.9c to 23.7c, while operating cash flow was $12.7 million for the six months to December 31. Chief executive Mark Waller said he was pleased with the company's performance despite challenging market conditions.

Medical supplies company Ebos has posted a net profit after tax for the six months to December 31 of $11.7 million – up 38% for the same time period in 2008.

Earnings per share for the half-year increased 5.9c to 23.7c, while operating cash flow was $12.7 million for the six months to December 31.

Chief executive Mark Waller said he was pleased with the company’s performance despite challenging market conditions.

“This is particularly good in this economy. The company has experienced good organic growth in New Zealand and Australia,” he said.

The company had focused on reducing debt and on operating efficiencies since the global financial crisis had began.

Ebitda was $21.4 million for the half-year period, up 18.2% on the prior year. Mr Waller said both the healthcare and scientific business segments recorded profitability, while the company’s continued investment in automation and technology has improved operating efficiency.

The directors had approved a bonus share distribution of 13.5c per share for the half-year – up from 01.5c per share for the corresponding period last year – to be issued on April 13.

The record date for the bonus share distribution is March 12. Shareholders will have the option to have these shares purchased back by the company for cash. 

Mr Waller said Ebos supplied both government funded and private hospitals, clinics and other healthcare providers.

He said government budgets and subsidises had not constricted for supplies such as disposable bedpans, catheters and other single unit disposable items because they were necessity items.

“Healthcare is a resilient industry and we have an aging population. The demand side for such items doesn’t change (for such items) as it does for consumer commodities. But this is an extremely competitive market. We’re competing with multi-nations, some 100 different companies here.”

As the green issue continues to grow in momentum and consumers seem to be continually seeking out products that meet an environmental standard, more and more products are being made more efficiently.

Mr Waller said bedpans were now available as single use items and were made of recycled newsprint. But he said in order for the industry to become greener there would need to be further regulation from a local and central government level.