Summary
The fund managers believe that EBOS Group Ltd has faced significant challenges, particularly with the loss of the Chemist Warehouse contract, which generated $1.9bn in revenue annually and is set to expire in June 2024. In their opinion, the market's reaction to this news was proportional to the anticipated earnings loss, especially given that the renewal was never guaranteed. Despite this setback, EBOS has demonstrated a commitment to diversifying group earnings and implementing strategies to mitigate the impact of lost volumes. The fund managers noted efforts to enhance growth across various sectors, including the rollout of Terry White Chemmart pharmacies, animal care, and medical devices. Additionally, the recent sell-down of the Zuellig family's stake has been viewed positively, as it removes a longstanding overhang and may enhance index positioning. Overall, the fund managers express confidence in EBOS's strong profit trends and continued investment in key areas, suggesting a potential for recovery in the stock's valuation.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
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Commentary From The Managers
Mint Asset Management
21 July 2025
$36.79
Summary
- Mint Asset Management observed the Zuellig family's sell-down of their EBOS stake from 18.1% to 4.9%.
- This sell-down was easily digested by the market.
- It has positive index connotations for the stock.
- The action removes a longstanding overhang on the stock.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Commentary From The Managers
Mint Asset Management
21 July 2025
$36.79
Summary
- Mint Asset Management observed the Zuellig family's sell-down of their EBOS stake from 18.1% to 4.9%.
- This sell-down was easily digested by the market.
- It has positive index connotations for the stock.
- The action removes a longstanding overhang on the stock.
Airlie Funds Management
30 Sept 2023
$32.37
Summary
- Airlie Funds Management has re-entered EBOS Group due to a favorable valuation following stock declines.
- The valuation reflects concerns about pharmacy dispensing changes and the potential impact of losing the Chemist Warehouse contract.
- EBOS Group reported a strong profit result, indicating positive trends in pharmacy and healthcare distribution.
- The company is benefiting from recent investments in their pet food operations.
Cooper Investors
30 June 2023
$33.77
Summary
- EBOS (EBO) underperformed due to the loss of their Chemist Warehouse pharmaceutical supply contract.
- This contract generated approximately $1.9bn in annual revenue and is set to expire in June 2024.
- The market reaction reflected concerns over earnings loss from the contract renegotiations.
- EBOS acknowledges the risk of non-renewal but has developed strategies to mitigate the impact.
- Focus for EBOS has shifted towards replacing lost volumes and identifying cost-saving opportunities.
- There have been efforts to diversify group earnings in recent years.
- EBOS asserts its confidence in its growth strategies across various sectors.
- Key areas for growth include Terry White Chemmart pharmacies, animal care, medical devices, and contract logistics.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in EBOS Group Ltd (ASX:EBO)?
Fund managers including Cooper Investors, Mint Asset Management and Airlie Funds Management have invested in EBOS Group Ltd (ASX:EBO).
Why have investment managers invested in EBOS Group Ltd (ASX:EBO)?
Fund managers have invested in EBOS Group Ltd due to its strong fundamentals and strategic growth initiatives despite recent challenges. Following the loss of the Chemist Warehouse contract, which generated significant revenue, EBOS has focused on diversifying its earnings and minimizing the impact of this setback. Fund managers like Cooper Investors and Airlie Funds Management noted the company's proactive strategies in expanding its pharmacy network, animal care, and medical device sectors. Additionally, the recent sell-down of the Zuellig family's stake has alleviated market concerns, enhancing the stock's appeal. Overall, fund managers see potential in EBOS's growth strategies and its ability to adapt to changes in the market.
What happened to EBOS Group Ltd (ASX:EBO)?
In July 2025, Mint Asset Management highlighted significant developments regarding EBOS Group Ltd in their Quarterly Report, noting a decrease in the Zuellig family's stake from 18.1% to 4.9%. This sell-down, coinciding with the share price around $36.79, was well-received by the market, indicating positive index implications for EBOS and effectively alleviating a longstanding overhang on the stock.