Ansell shares lift on improving outlook
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More news: Shares in Ansell are up more than 5% to $28.76 after the protective clothing products maker signalled its healthcare end market conditions are normalising after the business suffered lower volumes and price cuts over the last year.
While the company expects market conditions to be broadly neutral in FY25, it expects the reduction of destocking effects and success with new products to support sales growth in both Industrial and Healthcare Segments.
Ansell CEO Neil Salmon said the post-pandemic market disruptions were largely behind, with the business returning to organic growth in FY25.
Ansell trims dividend as full-year profit drops
The news: Softening demand for protective clothing products in the healthcare sector has weighed on Ansell’s full-year profit and sales.
The numbers: Net profit for the year to 30 June slumped 48.4% to USD76.5 million ($113.6 million), below analyst expectations. Revenue for the period slipped 2.2% to USD1.62 billion, while adjusted earnings per share (EPS) dropped 8.5% to 105.5 US cents, but was within its guidance range. Ansell will pay an unfranked final dividend of 21.90 US cents a share, down from 25.80 US cents a year ago.
The context: Ansell said sales at its healthcare unit were down 8% on a constant currency basis, more than offsetting growth in its industrial unit. The company had suffered lower volumes and price cuts over the last year after slowing production amid an oversupply of protective gear in the market — a reversal to its fortunes during the pandemic when demand soared for its products.
The company expects market conditions to be broadly neutral in FY25, with demand growth in more cyclical verticals muted by some macroeconomic weakness. It expects the reduction of destocking effects and success with new products to support organic constant currency sales growth in both its industrial and healthcare segments, and has outlined adjusted EPS guidance in the range of 107 US cents to 127 US cents.
What they said: “We exit FY24 with good momentum and with post-pandemic market disruptions largely behind us we look forward to returning the business to organic growth in FY25,” CEO Neil Salmon said.
The source: ASX announcement
