Ansell shares rocket on HY results, guidance upgrade
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More news: Ansell shares jumped more than 6% at the start of trading after the company's first-half result outstripped market estimates.
Ansell shares were up 6.3% to $37.12 by 10:30am AEDT, extending gains of more than 50% over the last 12 months.
The healthcare equipment manufacturer reported stronger-than-expected organic revenue growth, and said that newly acquired Kimberly-Clark's personal protective business was performing ahead of expectations.
The company also increased its adjusted earnings per share guidance for the second time this financial year.
What they said: "Given the strong result and upgrade to FY25 guidance we expect the stock to outperform today," said RBC Capital Markets analyst Craig Wong-Pan.
Ansell posts HY sales surge, hikes earnings guidance
The news: Personal protective equipment (PPE) manufacturer Ansell reported double-digit growth in first-half sales and EBIT, and increased its full-year adjusted earnings per share (EPS) guidance.
The numbers: Ansell posted first-half sales of USD1.02 billion ($1.63 billion), up 29.9% compared to the previous corresponding period.
EBIT increased 62.9% year on year to USD127.4 million. Adjusted EPS rose 35.5% to 55.7 US cents.
Ansell declared an interim dividend of 22.20 US cents per share, up from 16.50 US cents a year ago.
The company also increased its FY25 adjusted EPS guidance range for the second time, from between 110 US cents and 127 US cents, to between 118 US cents and 128 US cents.
The context: Ansell said that its industrial segment was supported by a "significant contribution" from new products, helping to overcome "muted demand conditions" in key manufacturing end markets.
The company also said its healthcare segment rebounded from the effects of distributor destocking in the prior period.
The first-half contribution from KBU, acquired from Kimberly-Clark Corporation in July last year, was "ahead of our acquisition business case", the company said.
Into the second half, Ansell expects to see continued sales growth despite "subdued industrial demand and uncertainty stemming from changing trade policies in various countries". The company said that "plans are in place to substantially offset tariff increases" on US imports of products from China, Mexico and Canada, with "limited cost impact" expected during the second half of FY25.
The sources: ASX announcement, RBC Capital Markets research
