Ansell trims guidance after half-year profit slide
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The news: Ansell has narrowed its full-year earnings guidance after posting a drop in first-half profit and sales amid softening demand for its protective clothing products.
The numbers: Net profit for the six months to December 2023 dropped 69.6% to USD19.4 million ($29.7 million), while revenue for the period was down 6% to USD784.9 million. Ansell will pay an unfranked interim dividend of 16.5 US cents a share, down from 20.1 US cents a year ago.
The context: Ansell said sales at its healthcare unit were down 15% on a constant currency basis, more than offsetting growth in its industrial unit. The company had previously warned of lower volumes and price cuts in the first half 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.
On Tuesday, Ansell said it expects full-year adjusted earnings per share to be in the range of 94 US cents to 110 US cents, slightly lower from its previous estimate of 92 US cents to 112 US cents.
What they said: “The sales and EBIT declines in our healthcare global business unit arose on sales and margin headwinds we had anticipated at the start of the year. As we begin the second half of the year, we see clear signs that these headwinds are moderating and expect performance in this business to improve” CEO Neil Salmon said.
The source: ASX announcement
