Key Highlights

  • Statutory Revenue increased 1.8% to $3.7 billion, but statutory EBITDA fell 42.6% and the Company recorded a statutory NPAT loss of $16.0 million, a decline of 177.9% on FY25.
  • The statutory loss includes a $38.0 million expected Credit loss expense linked to the administration of the Infinity Pharmacy Group, with a $9.3 million Debt recovery representing approximately 19% recovery.
  • Underlying EBITDA increased 2.1% to $97.2 million and normalised revenue growth was 6.7%, while underlying NPAT declined 13.6% to $26.0 million.
  • Operating cash generation increased 317% to $29.1 million, and the Company completed its two-year 3-2-1 Merger integration during the year, with no Dividend declared for FY26.

Paragon Care Limited (ASX:PGC), trading at $0.13 and down 7.14% on the day, has released its financial results for the year ended 30 June 2026 (FY26), reporting revenue growth alongside a statutory net loss driven by a credit loss provision related to the administration of a former customer, the Infinity Pharmacy Group.

Statutory and Underlying Results

On a statutory basis, revenue increased 1.8% to $3.7 billion, while statutory EBITDA fell 42.6% to $50.8 million and the Company recorded a statutory NPAT loss of $16.0 million, a decline of 177.9% compared with FY25. The statutory result includes an expense to recognise the estimated credit loss of debt owed by the Infinity Group, comprising a $38.0 million charge, or $34.9 million net of recoverable GST, for FY26, in addition to a $1.2 million provision recorded in FY25. The Company noted a subsequent debt recovery from the Infinity Group valued at $9.3 million, representing an approximate 19% recovery excluding GST.

On an underlying basis, which excludes items including the Infinity Group provision, integration and restructuring costs, and non-cash items, revenue growth normalised for the loss of Infinity Group and exited Ramsay Group contract revenue was 6.7%. Underlying EBITDA increased 2.1% to $97.2 million, or 7.4% on a like-for-like currency basis, while underlying NPAT declined 13.6% to $26.0 million. Net gearing stood at 2.5 times underlying EBITDA, including the last twelve months of EBITDA from acquired businesses.

Segment Performance

In the ANZ segment, revenue growth excluding the Infinity Group loss and Ramsay Group contract exit was 6.1%, with segment Margin holding steady at 8.0%. Within ANZ, Wholesale revenue was broadly flat against the prior year despite the loss of these accounts, with margin improving to 6.3% from 6.0% due to the exit of lower-margin business. Medical Technology results were described as mixed, with results in medical devices offset by challenges in orthopaedics and vision as suppliers shifted to direct sales models, while Contract Logistics and Clinical Manufacturing both delivered revenue growth, the latter aided by the Acquisition of Fisher Biotec.

In the Asia segment, revenue grew $58.8 million on the prior year, comprising $45.4 million from acquisitions and $13.3 million of organic growth, representing 13.2% organic growth. Segment margin contribution increased 43.4% in dollar terms, though the margin percentage declined to 42.1%, from 46.4% previously, reflecting Diversification of products and geographies as the Company expanded its regional footprint and shared services function.

Strategy, Balance Sheet and Outlook

The Company completed its two-year 3-2-1 merger integration activity during FY26, realising cost base rationalisation through Business unit restructuring and IT system harmonisation, which it says has enabled reinvestment in growth functions including increased Advertising and Marketing spend, particularly in Asia. Operating cash generation improved 317% to $29.1 million, while net Working Capital reduced by $31.9 million against the prior comparative period.

No dividend was declared for FY26, and no Dividend reinvestment plan is in operation, with the Company stating it considers it prudent to confirm the quantum and timing of the Infinity Group debt recovery before making a dividend determination, with the position to be reviewed at the FY27 half-year results. Management said it is not providing FY27 revenue guidance given economic instability, though it expects to remain at mid-single-digit revenue growth, and outlined plans including a share buyback program to commence in FY27, expansion into new markets and categories, and continued pursuit of legal avenues to recover the balance of the Infinity Group shortfall.

Conclusion

Paragon Care's FY26 results show underlying revenue and EBITDA growth continuing despite the exit of two significant contracts, while the statutory result was affected by a substantial credit loss provision linked to the Infinity Group's administration, resulting in a net loss for the year. With the 3-2-1 integration program now complete and underlying cash generation improved, the Company's FY27 outlook will depend on organic growth initiatives, further recovery of the Infinity Group debt, and the review of its dividend position at the half-year.