Ebos Group Underperforms in Last 12 Months After Contract Loss, Management Shakeup, Jarden Says

MT Newswires Live06-03

Ebos Group (ASX:EBO, NZE:EBO) materially underperformed in the last 12 months after a change in group management and the loss of the Chemist Warehouse

contract prompted a reset in earnings expectations, Jarden said in a note on Tuesday.

Jarden trimmed its fiscal 2027 and fiscal 2028 underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates for the company after a review of the many moving parts mostly impacting the healthcare segment.

At the underlying net profit after tax level, the changes also reflect higher net interest costs and shifting Origin Biologics from an associate to non-controlling interest in fiscal 2027. Jarden assumed that in fiscal 2028, the company would acquire the remaining non-controlling interests, in line with its existing financial liability raised on the balance sheet for AU$38 million.

Near term, the healthcare segment is facing headwinds from fuel-related costs and ongoing competition in the community pharmacy segment, per the note.

The investment firm retained its overweight rating on Ebos Group and cut the price target to NZ$30.50 from NZ$33.80.

Ebos Group's Australian shares were down nearly 2% in recent Wednesday trade, while its Kiwi shares shed about 3%.

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