Global protective products manufacturer Ansell has announced a 184% increase in half year net profit to US$55 million.
Ansell, whose products include gloves and other personal protective equipment, said sales grew 29.9% (12.5% on an organic constant currency basis) to $1,019.7 million in the six months to 31 December 2024.
The company said earnings before interest and tax (EBIT) surged 62.9% (20.9% constant currency) and adjusted earnings per share (EPS) jumped 35.5% to 55.7 cents.
EBIT growth was driven by higher sales, improved manufacturing utilisation and increased savings from the Accelerated Productivity Investment Program, but was partly offset by higher freight costs and higher raw material costs.
Managing Director and CEO Neil Salmon said he was encouraged by the momentum in Ansell’s underlying business and pleased it was on track to complete the complex integration of the Kimtech and KleenGuard Business Unit (KBU) within 12 months while continuing to deliver its productivity program objectives.
“We achieved strong growth in the first half and made good progress against our key strategic objectives,” Salmon said in an ASX announcement.
He said good top and bottom-line results in the Industrial Segment were supported by a significant contribution from new products, and the Healthcare Segment rebounded from the effects of distributor destocking in the prior period.
Ansell expected organic constant currency sales growth despite subdued industrial demand and uncertainty from changing trade policies, underpinned by the opportunity and flexibility provided by its balanced end market exposure and diversified supply chain.
“This outlook, combined with the strength of our first half performance, means we are now increasing our FY25 Adjusted EPS guidance range to US118¢ to US128¢,” Salmon said.
Directors declared an unfranked interim dividend of 22.2 cents, compared with 16.5 cents a year earlier, to be paid on 6 March to shareholders on record on 17 February.
Ansell shares closed on Friday at A$34.93, 16 cents (0.46%) higher at $5.10 billion.
