Citi flags geopolitical cost impacts for EBOS Group

EBOS

14/04/2026 21:25

** Citi expects healthcare distribution firm EBOS Group EBO.AX, EBO.NZ to experience cost pressure from current geopolitical situation via Symbion, its drug distribution business

** Mid-teens percentage of cost of goods sold is fuel-related, and with 40-50% rise in prices since February this could add mid-single digit millions to opex for 2H26 - Citi

** EBO's product mix in the Healthcare division is moving towards higher priced drug in more specialized subcategories, which is unhelpful for margins as the fees kept are flat

** However, Citi says EBO's margins should be higher when the new fee structure is implemented on July 1

** "...main issues holding the shares back are visibility on mid-term margin trajectory and better transparency of how the company sits within each of its business segments ..." - Citi

** YTD, EBO down 23.25%

($1 = 1.4033 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com))