• August 23, 2021

Markets Live, Tuesday, August 24, 2021

Personal protective equipment maker Ansell’s earnings rose close to 50 percent in constant currency terms as the $ 5 billion firm continued to ride the wave of strong demand due to COVID-19.

Outgoing CEO Magnus Nicolin told investors this morning that the company posted sales of $ 2.03 billion for 2021, with gains of 48.5 percent in constant currency at $ 246.7 million.

Earnings per share came in at 192.2c, within the company’s updated guidance range, while Ansell shareholders will receive a final dividend of US43.6c, payable on September 16.

However, the company warned that new waves of coronavirus and rising transportation costs could affect the figures over the next year.

Ansell warned that COVID-related supply and logistics issues could affect its operations this mid-December.

“The increase in COVID-19 cases in Southeast Asia in recent months may disrupt supply. Several Ansell factories and suppliers in the region have had short-term closures or reduced operations. This may affect sales during the first half of fiscal 22. Increased freight costs and shipping delays are also expected to persist through fiscal 22, ”Ansell management said in outlining future direction.

The price of the key ingredient in disposable gloves, nitrile, has risen dramatically during the pandemic due to booming demand, but Nicolin said the company had prepared well for this by negotiating long-term supply agreements with flexible prices in cost case. go down in the future.

Nicolin told investors in a call this morning that the company was well placed to fight increasing competition from new single-use glove manufacturers.

“Not all single-use gloves are the same,” Nicolin said, arguing that many emerging suppliers were using lower-cost nitrile that could cause products to break.

“You get what you pay for.”

Nicolin will step down as CEO of Ansell next week and hand over the reins to Neil Salmon, who was president of the company’s industrial business unit.

The shares closed at $ 40.50 on Monday.

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