Key Highlights

  • The healthcare wholesaler, distributor and manufacturer lodged its FY26 Annual Report alongside an audited results release on 23 September 2026.
  • According to the release, total assets, total liabilities, total equity, earnings per share, net tangible Assets and net gearing ratios are all unchanged from the preliminary report.
  • After finalising the notes to the financial statements, the company made some minor Balance Sheet reclassifications and updated several disclosures.
  • On the balance sheet, $4,276,000 of other assets was reclassified from current to non-current assets, and $1,027,000 of vendor conditional payments moved from non-current to current liabilities.

Paragon Care Limited (ASX:PGC) has released its audited financial statements for the year ended 30 June 2026, confirming that its bottom-line result is unchanged from the preliminary figures it reported to the market in August. The healthcare wholesaler, distributor and manufacturer lodged its FY26 annual report alongside an audited results release on 23 September 2026.

The company, which trades as ParagonCare, said profit after income tax and total comprehensive income attributable to shareholders remained the same as in its Appendix 4E preliminary final report lodged on 26 August 2026. For FY26, that means Revenue of about $3.7 billion, underlying EBITDA of $97.2 million and a statutory net loss after tax of $16.0 million, largely due to a provision against debts owed by the Infinity Pharmacy Group.

What changed between preliminary and audited accounts

According to the release, total assets, total liabilities, total equity, earnings per share, net tangible assets and net gearing ratios are all unchanged from the preliminary report. After finalising the notes to the financial statements, the company made some minor balance sheet reclassifications and updated several disclosures.

On the balance sheet, $4,276,000 of other assets was reclassified from current to non-current assets, and $1,027,000 of vendor conditional payments moved from non-current to current liabilities. In the notes, the undrawn finance Facility limit was revised to $138.7 million and bank guarantees utilised at 30 June 2026 were revised to $11,345,350. Disclosures relating to Business combinations, including the pro-forma revenue contribution from Pacific Medical (Hong Kong), were also updated.

The company's independent auditor issued an unqualified (unmodified) audit opinion on the FY26 financial report, and the directors prepared the report on a Going Concern basis.

The key FY26 numbers

The directors' report shows revenue of $3,680.5 million, up 1.8% from $3,613.9 million in FY25. Gross Margin rose 7.2% to $347.5 million, while underlying EBITDA increased 2.1% to $97.2 million from $95.2 million. The company attributed the underlying growth to organic and acquisition-driven expansion in its Asia segment.

The statutory picture was weaker. Reported EBITDA fell 42.6% to $50.8 million, the group recorded a loss before tax of $21.7 million compared with a profit of $25.5 million a year earlier, and the net loss after tax was $16.0 million, compared with a net profit of $20.6 million in FY25. No Dividend was declared for FY26, consistent with FY25.

The difference between statutory and underlying EBITDA was mainly the Infinity provision of about $34.9 million, net of GST recoverable, along with $4.7 million of mergers and acquisitions costs, $6.4 million of restructuring and integration costs and $1.9 million of share-based payments, partly offset by a $1.6 million foreign exchange gain.

The Infinity Pharmacy Group hit

The Infinity Pharmacy Group, a retail pharmacy customer group, entered voluntary administration in December 2025 and January 2026, with receivers separately appointed to many of its entities. ParagonCare had ceased Supply to the group in March 2025. Gross amounts owed to the company totalled $48.5 million.

ParagonCare fully provided for the balance at 31 December 2025, but later reversed $9.3 million after administrators issued an updated estimated outcome analysis on 7 August 2026. That analysis indicated a possible recovery to ParagonCare of roughly $9 million to $13 million, and the directors estimated the recoverable amount at $9.3 million, about 19% of the gross amount owing. The company described this as a significant area of estimation uncertainty, noting that actual recovery could differ materially.

"The Infinity Pharmacy Group has been a disappointment for us," Chairman Peter Lacaze and Managing Director and CEO Carmen Riley wrote in the annual report, adding that the company is continuing to work with the administrators.

Integration completed, acquisitions added

FY26 marked the end of ParagonCare's 3-2-1 integration program, launched after the June 2024 Merger of ParagonCare, Clifford Hallam Healthcare and Oborne Health Supplies. The company moved most Australian businesses onto a single enterprise resource planning platform and commissioned an automated Brisbane distribution centre, which opened in January 2026 and was fully live by June 2026.

The group also completed six acquisitions during the year: AHP Dental & Medical, Fisher Biotec and Presidental in Australia, and Somnotec, Haju Medical and Pacific Medical across Asia. It now operates in 11 countries and has established an Asian regional head office in Singapore.

By division, Wholesale generated revenue of $2.83 billion. Total Wholesale revenue declined 5.2%, which the company attributed to the Infinity and Ramsay exits, but the company said normalised growth was 1.5%. Medical Technology revenue rose 21.4% to $329.0 million, helped by acquisitions and organic growth in Asia. Contract Logistics was described as a strong performer with double-digit growth.

Capital management and outlook

After year end, ParagonCare announced on 16 September 2026 an on-market buy-back of up to 82,765,269 shares, along with an instruction for its employee share trust to acquire 23,900,401 shares on market to satisfy future employee incentive vesting.

For FY27, the directors expect a focus on organic growth, integration of the six acquired businesses and further efficiency gains. The company highlighted full-year contributions from acquisitions, full commencement of an Australian Defence Force supply contract that began in July 2026, and normalised Capital expenditure following completion of the Brisbane distribution centre. It also plans to take its Wholesale offering into New Zealand in FY27.

Risks to consider

Management flagged ongoing cost pressures from inflation, wages, freight and fuel, as well as healthcare funding constraints and foreign exchange volatility. The annual report also cites supply chain disruption and fuel price instability linked to conflict in the Middle East. The eventual Infinity recovery depends on matters outside the company's control, including completion of pharmacy sales and resolution of disputed creditor claims. For investors tracking ASX shares in healthcare distribution, those factors, together with integration of the new acquisitions, remain central to the FY27 picture.

Conclusion

ParagonCare's audited FY26 accounts, released in September 2026, confirm the preliminary result without changes to profit, assets or earnings per share, and carry a clean audit opinion. The numbers show modest underlying growth overshadowed by a statutory loss tied to the Infinity collapse, with management now shifting its attention from integration to growth.