Shares of the ASX-listed Ansell Limited (AU:ANN) soared nearly 9%, fueled by the company’s upbeat organic growth forecast for FY25. The company announced its FY24 annual results, noting that post-pandemic market disruptions are fading. It expressed confidence in achieving higher returns in FY25 and beyond. Consequently, Ansell expects its FY25 adjusted earnings per share (EPS) to be between $1.07 and $1.27, up from $1.055 in FY24.
Ansell is a manufacturing company that specializes in protective industrial equipment and medical gloves.
Ansell Slashes Dividend as Profit Falls
In FY24, Ansell’s revenue fell 2.2% to $1.62 billion, mainly due to inventory reduction by its healthcare customers. Among the company’s segments, Healthcare witnessed a 7.7% decline in its sales on a statutory basis. On the other hand, the Industrial segment’s sales grew 4.6% year-over-year. Meanwhile, Ansell reported a 48.8% year-over-year drop in its net profit to $76.5 million.
As a result, the company slashed its final dividend to 21.9 cents per share for FY24, from 25.8 cents a year ago.
In July, Ansell finalized its acquisition of the personal protective equipment division (renamed KBU) of Kimberly-Clark (KMB). This acquisition is set to strengthen Ansell’s portfolio, generate cost synergies, and provide tax benefits.
Looking ahead, Ansell expects EBIT (earnings before interest and tax) to increase in FY25, driven by higher sales, cost savings, and additional contributions from KBU.
Are Ansell Shares a Good Buy?
According to TipRanks’ consensus, ANN stock has been rated a Moderate Buy based on three Buys and one Sell recommendation. The Ansell share price forecast is AU$28.04, which is 5.17% below the current price level.
