Ansell Limited (ANN)
SELL

Near the bottom

 24 Aug 2022
Sector: Health Care

FY22 RESULT

Need to know:

  • Final dividend US31.2cps unfranked, payment 15 September
  • FY22 EPS US125.2cps at low end of guidance
  • Exist from Russia $17m EBIT impact
  • FY23f EPS guidance US115c-US135c

Investment implications

ANN’s tough FY22 doesn’t get any easier in FY23f although guidance provided looks strong. Reported FY22 net profit of US$158.7 million was -36% on last year and includes the exit from Russia.

The result did deliver on 2H22 revised guidance set back in January. Guidance for FY23f EPS is now US115-135cps compared to consensus at US127cps. This suggests operating conditions are bottoming more quickly than expected.

ANN will exit its Russian operations with an EBIT impact of US$17 million in FY22. The Sri Lankan economy is in disarray and ANN has two plants in the country. The future of these plants is uncertain.

Sales expected to decline in FY23f due to Exam/SU (single use) price normalisation. Employee costs are rising. Mitigated by price increases and operating initiatives.

Our Sell recommendation is under review.

This commentary reflects our initial view. For detailed reports for companies under Sandstone Insights coverage, see our latest research notes for our investment view and specific risks associated with investing in these companies.

FIGURE 1: FY22 RESULT

View the latest Research Report

Stock overview

Share Price

Company overview

Ansell is a global manufacturer of protective industrial equipment and medical gloves.

Disclaimers and Disclosures

Issuer

The information and opinions contained within Sandstone Insights Research were prepared by MST Financial Services Pty Ltd (ABN 54 617 475 180, AFSL 500557) ("MST").

Reliance

Whilst MST make every effort to use reliable, comprehensive information in the construction of its reports, MST make no representation, warranty or undertaking of the accuracy, timeliness or completeness of information in this report. Save for any statutory liability that cannot be excluded, MST and MST employees, representative and agents shall not be liable (whether in negligence or otherwise) for any error or inaccuracy in, or omission from, this advice or any resulting loss suffered by the recipient or any other person.

General Advice

Any advice contained within Sandstone Insights Research is general advice only and has been prepared without taking into account any person’s objectives, financial situation or needs. Any person, before acting on any advice contained within Sandstone Insights Research, should first consider consulting with a financial adviser to assess whether that advice is appropriate for their objectives, financial situation and needs. 

General Disclosures

This report should be read in conjunction with MST Disclaimers and Disclosures and is published in accordance with MST Conflict Management Policy which are available on the MST website: https://www.sandstoneinsights.com.au. 

Currency of Research

The recommendations made in a Sandstone Insights Research report are current as of the publication date. If you are reading a report materially after publication, it is likely that circumstances will have changed and at least some aspects of the analysis may no longer hold.

Access and Use

Any access to or use of Sandstone Insights Research is subject to the Terms of Use. By accessing or using Sandstone Insights Research you hereby agree to be bound by our Terms and Conditions and hereby liable for any monies due in payment of accessing this service. In addition you consent to us collecting and using your personal data (including cookies) in accordance with MST Privacy Policy, including for the purpose of a) setting your preferences and b) collecting readership data so MST may deliver an improved and personalised service to you. If you do not agree to MST Terms of Use and/or if you do not wish to consent to MST use of your personal data, please do not access this service.

Equities Research Methodology

Please click here for information about MST equities research methodology.