2023 Annual General Meeting Unveils Ansells FY23 Performance and FY24 Guidance

Amidst Challenging External Environment, Ansell Limited (ASX: ANN)  Delivers Resilient Performance. The 2023 Annual General Meeting held by Ansell provided valuable insights into the company's performance for FY23 and their outlook for FY24. The meeting discussed various aspects, including financials, sustainability, and strategic investments.

FY23 Performance Overview

• Sales: Ansell reported FY23 sales of AU$1,655.1 million, reflecting an 11.0% decrease, primarily due to the external business environment.
• Gross Profit After Distribution Expenses (GPADE): GPADE stood at AU$511.6 million, marking a 2.3% decline.
• Margin: Ansell maintained a strong margin of 30.9%, demonstrating resilience despite challenges.
• EBIT: Earnings Before Interest and Taxes (EBIT) for FY23 amounted to AU$206.3 million, down 6.7% from the previous year.
• Adjusted EPS: The company's Adjusted Earnings Per Share (EPS) for FY23 was 115.3 US cents, while Statutory EPS stood at 117.5 US cents.
• Dividends: Ansell declared a dividend per share (DPS) of 45.90 US cents.

Performance Highlights

The company acknowledged the external challenges they faced, such as customer destocking in the healthcare sector and unfavorable foreign exchange rates. However, they still managed to achieve a 4.3% organic revenue growth in the Industrial segment, driven by mechanical products and emerging markets.

Progress Against Objectives

Ansell highlighted its strategic priorities for H2, which included achieving organic revenue growth and margin improvements. They also provided updates on their strategic investments, including the successful integration of Careplus and advancements in supply chain metrics.

Sustainability Initiatives

Ansell discussed its sustainability achievements in FY23, particularly in areas related to environmental conservation. They reported progress towards their goal of achieving net-zero emissions and reducing water withdrawals. All Ansell plants have now achieved zero waste to landfill.

Safety and People

The company emphasized the importance of safety and highlighted improvements in leading indicators for safety, resulting in a net reduction in injury rates. Ansell also shared progress in addressing labor-related issues in their operations and supply chain.

Accelerated Productivity Investment Program

Ansell unveiled a productivity investment program aimed at driving growth and returns. This program focuses on simplifying the organizational structure, improving manufacturing productivity, and accelerating digital investments. The company expects to fund these initiatives through inventory reductions.

New Executive Leadership Team Structure

The meeting introduced the restructured Executive Leadership Team, aimed at enhancing the company's customer-centric approach and cost-efficiency.

FY24 Guidance

Ansell's guidance for FY24 included an update on market conditions, the ongoing impact of destocking in certain segments, and the progress of their productivity investment program. They maintained their FY24 adjusted and statutory EPS guidance, with slight weighting toward H2.

Amidst external challenges, Ansell's commitment to sustainability, safety, and strategic investments positions the company for continued growth and resilience in the coming fiscal year.

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