20 January 2021 – Ansell Limited (ASX:ANN), a global leader in personal protection safety solutions, provides a trading update ahead of the release of its first half financial year 2021 results (“F’21 H1”).
With an increasing number of COVID-19 cases worldwide and a greater focus on protection against transmission, Ansell continues to see elevated demand for a number of its products across Exam/SU, Life Sciences and Chemical Protective Clothing. The Company is also seeing strong market share gains in its Mechanical and Surgical segments. Furthermore, by implementing efficiencies to increase output and investing in increased production capacity at its own plants, Ansell has been able to successfully and safely meet higher demand where others in the industry have struggled. In addition to sizable volume increases, the Company has been able to effectively pass through price increases to offset higher costs from raw material, particularly in Exam/SU and labor costs.
“We acknowledge we have seen record sales and earnings growth in F’21 H1 in what has been an extraordinary period where we have seen better than expected performance across all of our strategic business units.
I would like to take the opportunity to thank our 13,500 employees who have continued to adapt and work tirelessly to get product to our customers despite the difficulties of operating in a COVID-19 environment” says Magnus Nicolin, Managing Director and Chief Executive Officer.
For F’21 H1, Ansell is expecting to deliver organic growth north of +20%1 and unaudited Earnings Per Share (“EPS”) in the range of 81¢ - 84¢1 (representing 62% - 68% growth on F’20 H1 EPS of 50.1¢). As a result, Ansell now anticipates to exceed F’21 EPS guidance range of 135¢ - 145¢ (provided on 30 October 2020). The Company has successfully managed to navigate the fluid environment in F’21 H1 and anticipates higher demand for its products to continue for the remainder of F’21. However, there remains significant uncertainties given that COVID-19 continues to impact the Company’s manufacturing operations and supply chain with frequent and unpredictable infection cells, temporary shutdowns, local confinements and ocean freight delays. Given these challenges and uncertainties, Ansell currently considers that F’21 H2 EPS is unlikely to be stronger than the first half as has been the case in prior years. The Company is working through the analysis of these matters and their potential impacts on the remainder of the year and expects to be in a position to announce revised F’21 EPS guidance when it releases its half year results on Tuesday 16 February 2021.
This announcement has been authorised for release by the Board of Directors of Ansell Limited.
1 These figures are preliminary, unaudited and subject to further review and finalisation.