What can you expect in Ansell’s (ASX:ANN) 1H21 results?

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What can you expect in Ansell’s (ASX:ANN) 1H21 results?

 What can you expect in Ansell’s (ASX:ANN) 1H21 results?

Summary

  • Ansell Limited (ASX:ANN) has provided a trading update ahead of its first-half FY21 results due on 16 February 2021.
  • Ansell is witnessing high demand for its products across Exam/SU, Life Sciences and Chemical Protective Clothing, along with substantial market share gains in the Mechanical and Surgical segments.
  • For 1H21, Ansell expects organic growth north of 20% and unaudited EPS ranging between 81¢ - 84¢.

Another exciting Reporting Season has finally arrived for ASX-listed companies, while economic revival on the back of global vaccine developments, and emerging breakthrough trends remain on cards.

Investors across the globe are again examining ASX-listed companies releasing their results and outlook. Adding flavour to the season, medical glove and protective equipment maker Ansell Limited (ASX:ANN) issued an earnings upgrade on 20 January 2021. Consequently, on the day, the stock traded up over 3 per cent at $ 36.67.

Ansell’s 1H21 earnings upgrade

The world leader providing superior health and safety protection solutions, Ansell will release its half-year results on 16 February 2021. Notably, Ansell has successfully managed to pass through the fluid environment in this period.

For 1H21, the Company anticipates-

  • Delivering organic growth north of over 20 per cent
  • Unaudited EPS in the range of 81¢ - 84¢. Notably, this represents a 62 per cent to 68 per cent growth on 1H20 EPS of 50.1¢.
  • The Company now anticipates exceeding the FY21 EPS guidance range of 135¢ - 145¢, provided on 30 October 2020.
  • It anticipates a higher demand for its products to continue for the remainder of FY21.

Ansell’s long-term outlook

The Company acknowledges that there could be significant uncertainties owing to the COVID-19 pandemic. Ansell’s manufacturing operations and supply chain are most impacted. Issues like temporary shutdowns, regular and unpredictable infection cells, local confinements, and ocean freight delays persist and may continue to in the long-term too.

Consequently, Ansell believes that the H221 EPS is unlikely to be stronger than 1H21’s, as has been the typical scenario in prior years.

More information can be expected when the revised FY21 EPS guidance is provided as part of next month’s results.

What’s working in Ansell’s favour?

The world’s need for better protection never stops. Ansell abides by this notion which stands right in the ongoing testing times. The Company’s primal strength is its offering- health and safety protection solutions that aim to enhance human well-being.

The Company continues to see high demand for several products across Life Sciences, Chemical Protective Clothing and Exam/SU. Besides, substantial market share gains in the Mechanical and Surgical segments has also been noticed.

RELATED READ: Lens through success story of Ansell (ASX:ANN) in 2020

Ansell has been able to meet higher demand in the industry when others are still struggling to do so. For instance, the Company has implemented efficiencies to boost output and is investing in increased production capacity at its plants.

Besides, Ansell has passed-through price increases effectively to offset higher costs from raw material (specifically in Exam/SU and labor costs).

In the early hours of trading on 21 January 2021, ANN shares are trading at $ 36.67, with a market capitalisation of $ 4.71 billion.

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