Ansell profit jumps as demand soars during pandemic
Personal protective equipment manufacturer Ansell will lift its dividend for the 17th year in a row after intense demand for its products in the face of COVID-19 pushed up its sales and net profit.
The ASX-listed manufacturer recorded sales of $US1.61 billion ($2.25 billion) for the 2019-20 financial year, up 7.7 per cent, and well ahead of market consensus of $US1.56 billion. Statutory net profit for the year rose 5.2 per cent to $158.7 million.
Ansell has recorded a solid full year result.
The company, which has manufacturing operations around the world, is a leading maker of chemical body suits and rubber gloves, and demand has soared for these products since the coronavirus pandemic worsened dramatically earlier this year.
The company declared a final dividend of US28.25 cents per share for a full year dividend of US50 cents. The full year dividend is up 7 per cent on last year.
Ansell delivered earnings per share of US121.8 cents, up 9.2 per cent on the previous year and at the top end of its guidance range. Ansell was an exception to the rule among ASX-listed companies in calendar 2020, given it did not ditch or downgrade its guidance. Instead, in late March, it reaffirmed earlier guidance that it expected to deliver earnings per share growth in the range of US112 cents to US122 cents for 2019-20.
Ansell chairman John Bevan said the company had delivered a high quality result with strong growth in sales and earnings despite the challenges caused by COVID-19.
"The company has delivered EPS at the top end of its guidance range. This demonstrates not only the successful execution of the company’s strategy but also resilience of the business, reflecting the breadth of its portfolio and the balance of products, end users and geographies.
Ansell shares closed on Monday up 1.9 per cent at $40.30. The stock started the year priced under $30.
More to come
Market Recap
A concise wrap of the day on the markets, breaking business news and expert opinion delivered to your inbox each afternoon. Sign up for the Herald's here and The Age's here.