Paragon Care Ltd. reported a statutory net loss of $16.0 million for the year ended June 30, 2026, despite underlying revenue growth of 6.7% and a 7.4% increase in normalized EBITDA, as a $38 million provision overshadowed operational performance.
The ASX-listed healthcare distributor posted total revenue of $3.7 billion, up 1.8% on a reported basis, while underlying EBITDA reached $97.2 million, reflecting a 2.1% year-over-year gain. Statutory EBITDA fell 42.6% to $50.8 million, and statutory net profit declined 13.6% to $26.0 million. The company attributed the divergence to a $34.9 million provision for the Infinity Group debt, net of GST recovered, alongside $4.7 million in M&A costs and $6.4 million in restructuring expenses.
Cash flow improved significantly, with operating cash flow rising 89.4% to $65.8 million and net cash from operating activities increasing 317% to $29.1 million. Net debt expanded 31.3% to $284.1 million, representing 2.5 times underlying EBITDA on a proforma basis. Total debt facilities totaled $307.7 million, primarily through a $281.0 million facility with ScotPac.
Segment performance showed mixed results. Australia & New Zealand revenue grew 6.1% on a normalized basis to $3.52 billion, driven by a 47% increase in contract logistics revenue to $493.5 million. Medical technology revenue remained flat at $168.9 million, while wholesale revenue declined 5.2% to $2.83 billion. The Asia segment surged 58% to $160.1 million, with organic growth of 13.2%.
The company completed six acquisitions during the year, totaling $51.4 million, as part of its 3-2-1 integration strategy. CEO Carmen Riley highlighted the delivery of committed synergies and the recent Australian Defence Force contract win, while CFO Brendon Pentland noted the 6.7% normalized revenue growth as a positive indicator. Looking ahead, Paragon Care plans to launch a share buyback program in FY2027 and review its dividend policy.
