The Healthcare segment generated a 3.0% increase in Underlying EBITDA for the period, underpinned by solid growth from both our Australian and New Zealand business units.
In Australia, Healthcare revenue declined by $161m (-5.9%), however excluding the impact of the reduction in hepatitis C sales and the impact of PBS price reforms, revenue growth was +3.8%. Underlying EBITDA increased 3.0% driven by the performance of our Institutional Healthcare, Retail Pharmacy and Contract Logistics businesses.
New Zealand Healthcare operations delivered a solid performance over the period with revenue increasing 8.4% and underlying EBITDA increasing 2.9% with revenue growth across all NZ business units.
This was partially offset by higher labour and freight cost inflation which impacted earnings.
Revenue growth in Community Pharmacy excluding the impact of lower Hepatitis C sales and PBS reforms was +1.8%.
Commenting on the regulatory environment; Mr Cullity said “We are pleased with the Australian Government’s recent decision to maintain the Community Service Obligations (CSO) strict service standards and reporting obligations as these were essential in providing the community with access to medicines in accordance with the National Medicines Policy.
Importantly, the updated CSO Deeds prevent distributors from undertaking new exclusive-direct distribution arrangements and participating in the CSO.
“However, falling medicine prices, rising operational costs across the industry and a failure to fully resolve the issue of equal access for the distribution of PBS medicines have had an impact on our performance”.
EBOS, together with other members of the National Pharmaceutical Services Association (NPSA), continues to actively engage with the Federal Government and Minister for Health with respect to addressing these matters.
EBOS maintained its position in both the Australian and New Zealand Institutional Healthcare markets, delivering further earnings growth.
The Group’s recent acquisition of Warner & Webster further improves our position in the medical consumables market.
The Group’s Consumer Products division recorded revenue growth of 9.6%, principally driven by Red Seal’s continued strong performance in both domestic and international markets, and sales from our recently acquired Gran’s Remedy brand.
We continued our portfolio expansion with the recent acquisition of Quitnits, a leading and trusted head lice brand principally sold into the Australian grocery market.