One of NZ’s largest companies warns of A$5m-$10m hit from fuel, materials price hikes

Wednesday, 22 April 2026

Ebos Group has downgraded its pre-tax earnings for the year to take account of price hikes it is not entirely able to mitigate.

One of New Zealand’s largest listed companies has today warned the market that the increase in costs for fuel and other materials used by it have “exceeded previous assumptions”, and have reduced its forecast earnings in the year as a result.

Founded in Christchurch, Ebos Group is Australasia’s largest marketer, wholesaler, and distributor of healthcare, medical, and pharmaceutical products and employs more than 5700 people. With a market capitalisation of $4.6 billion, the company distributes medicines and healthcare products, medical consumables, surgical equipment, pet food and vet medicine and a vast array of other things.

Being one of the NZX and the ASX’ largest companies, Ebos is a common holding in Kiwisaver accounts and frequently included in “New Zealand Share” or “Australasian Equity” allocations by major Kiwisaver providers.

Ebos told the NZX this morning that not only had fuel prices increased materially in recent months, but there was a lesser impact also on the price of hydrocarbon related consumable products, for example plastic wrapping and polystyrene foam.

“This has resulted in higher direct transport, consumables and logistics costs across the group’s operations, particularly within our distribution intensive businesses. While underlying demand across the group remains stable, the pace and extent of fuel and consumables cost increases during the second half of [the 2026 financial year] have exceeded the group’s previous assumptions.”

While it had “pricing and operational levers” to mitigate these higher costs, which totalled between A$5 million - $10m - they would not be “addressable” or able to be mitigated in the current year, given the company’s role in the healthcare supply chain where there were arrangements with Government such as the Community Service Obligation (CSO) that did not allow for passing through additional costs.

Therefore, the company expected current financial year pre-tax earnings, minus non-recurring items, of approximately A$610m–$620m, compared with prior guidance of A$615–$635 million.

“The estimated impact assumes fuel supply and pricing conditions remain broadly consistent with current levels for the remainder of [the 2026 financial year], and there are no material changes as a result of fuel and input cost recovery mechanisms or to broader economic trading conditions,” the company said.

Ebos shares have lost almost a third of their value on the NZX and ASX over the year, attributed to the ongoing impact of losing a $1.9 billion contract to supply the Chemist Warehouse from 2024, and pressure on its margins.

Its shares were trading today at $22.14 apiece, down 0.49% after the guidance downgrade.