• Revenue of $1.85 billion up 13.1%
• EBITDA of $47.5 million up 10.5%
• NPAT and before PPA amortisation of $16.1 million up 13.3%

ParagonCare Limited (ASX:PGC) ('ParagonCare' or the 'Company'), a leading healthcare wholesaler, distributor, and manufacturer throughout the Asia Pacific region, is pleased to report its financial results for the half year ended 31 December 2024 ('HY25'). The HY25 revenue of $1.85 billion and EBITDA of $47.5 million reflects a solid result for the combined CH2, Oborne and ParagonCare businesses in its first six months of coming together. Revenue on a like for like basis was solid in both segments, with the Australian and New Zealand segment seeing growth in Pharmacy and Diagnostic, while the Orthopaedics and Capital & Service businesses faced challenges. The Asia segment continued its strong growth, with the Aesthetics business and Imaging business performing well, offsetting lower service revenue in the Philippines. Overall Gross Margin % was down on last year due to the revenue mix on a proforma basis. Expenses were well managed, although there were some challenges with higher professional services fees, insurance costs, and ongoing pressure with salary, wages, and freight expense. The integration plan is on track, with $650k of one-off costs associated with the integration in the first half. Net Debt was higher than June due to December being the peak period for the CH2 business, overall higher stock levels as the Company goes through the integration process, and debtors delaying payment in December, which is expected to normalize in the second half.

In FY25, the Company is focused on the continued execution of the integration plan for the merged entity and organic revenue & margin growth. Specific initiatives include continued execution on the integration plan, increasing cross-sell of expanded product range and bundled offerings, focusing on operational efficiency and cost rationalisation, strategic focus on 'One Team' way of doing business, actively reviewing customer, product, and agency partner pipeline to embed organic growth, and maintaining an acquisition pipeline for proactive searches in additional growth opportunities.