Ansell full-year profit drops

The news: Ansell has posted a drop in full-year profit and sales amid softening demand for protective clothing products in the healthcare sector.

The numbers: Net profit for the year to 30 June was down 6.6% to USD148.3 million ($228 million) with adjusted earnings per share down 17% to 115.3 US cents. Revenue for the period slid 15.2% to USD1.66 billion. Ansell will pay an unfranked final dividend of 25.80 US cents a share.

The context: Ansell last month warned it was slowing production amid an oversupply of protective gear in the market, in a reversal to its fortunes during the pandemic when demand soared for its products. On Monday, the company said it expects FY24 adjusted earnings per share to be lower in the range of 92 US cents-112 US cent, with first half sales to be affected by lower volumes and price cuts.

What they said: “With pandemic-related supply chain risks subsiding, channel partners and end users took decisions to reduce inventory which materially affected sales in our Healthcare GBU. We also saw softening in certain industrial end markets towards the end of the year as global interest rate rises began to weigh on manufacturing activity.” Ansell Chief executive Neil Salmon said.