• Revenue up 28% to $1.85 billion
• Net profit after tax up 85.8% to $13.2 million
• Gross margin increased due to sales mix changes

Paragon Care Limited reported a strong financial performance for the half-year ended 31 December 2024. Revenue increased by 28% to $1.85 billion, driven by the acquisition of CH2 Holdings Pty Limited and its controlled entities in June 2024, as well as the acquisition of Oborne in March 2024. The company also saw ongoing market share gains in the retail pharmacy segment. Gross margin percentage increased to 111% due to the sales mix, with Oborne and Paragon Care contributing lower volume, higher margin sales compared to CH2 Holdings' high volume, low margin sales. Net profit after tax attributable to the owners of Paragon Care Limited increased by 85.8% to $13.2 million. The company has finalized the purchase price allocation for Oborne and updated the provisional purchase price allocation for Paragon Care, resulting in the recognition of $108.8 million in identifiable intangible assets and $253.3 million in goodwill. The borrowings balance and related finance costs have increased due to working capital requirements and business growth, but are expected to revert to historical levels in the second half of the current financial year.

Paragon Care Ltd expects revenue and profit to continue growing in the second half of the 2025 financial year, driven by the integration of recent acquisitions and ongoing market share gains.