Importing still difficult says Ebos

By Phil Boeyen, ShareChat Business News Editor

Thursday 22nd February 2001

Medical distributor Ebos Group (NZSE: EBO) is struggling with currency fluctuations which it says are to blame for a merely credible result in its half-year profit.

For the six months ended December Ebos profit rose just 5% on the previous year to $1.956 million, despite sales increasing to $50.4 million from $34 million in 1999.

"The overall result is best described as credible in a climate presently unfavourable to importers," the company said in a statement.

Ebos says margin impact of ongoing weakness in New Zealand and Australian currencies continues to be the greatest influence on profitability and has neutralised the very positive impact of the group's growth initiatives.

Although New Zealand operating divisions and the Richard Thomson subsidiary in Australia reached profit targets, the company's Australian orthopaedic subsidiary returned only a breakeven performance compared with a profit the previous half year.

Ebos says its directors and senior executives continue to work on a range of growth opportunities, particularly those that add brand security or add value to existing business units.

The company is planning a 6.5 cents per share dividend, fully imputed.

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