Ansell Limited (ASX: $ANN) Half Year Financial Results

Ansell Limited (ASX: $ANN) has released its financial results for the half year ended 31 December 2023. The company reported sales growth and significant margin improvement in the Industrial segment, along with volume growth in Exam/SU. Ansell's Managing Director and CEO, Neil Salmon, expressed satisfaction with the cashflow delivery and the strong performance from the Industrial GBU. The company also successfully implemented the initial phases of its Accelerated Productivity Investment Program, leading to an increase in the annualised FY26 pre-tax savings target to $50m.

Executive Commentary on FY24 Half Year Results

We executed well as a business during the first half and delivered results consistent with our expectations. I was pleased with our cashflow delivery, the strong performance from our Industrial GBU and success in implementing the initial phases of our Accelerated Productivity Investment Program where we are now expecting annualised FY26 pre-tax savings of $50m versus our original estimate of $45m. The sales and EBIT declines in our Healthcare GBU arose on sales and margin headwinds we had anticipated at the start of the year. As we begin the second half of the year, we see clear signs that these headwinds are moderating and expect performance in this business to improve. We expect Industrial performance to remain strong and we are targeting approximately $20m in second half cost savings from Accelerated Productivity Investment Program initiatives, most of which have been already implemented. This supports our continued expectation of stronger second half earnings, and we are therefore narrowing our full year Adjusted EPS guidance to a range of US94c to US110c.

Summary of Ansell's FY24 Half Year Results

Ansell Limited (ASX: $ANN) reported sales growth in the Industrial segment and volume improvement in Exam/SU, offset by a reduction in Healthcare sales. The company successfully executed the initial phases of its Accelerated Productivity Investment Program, leading to an increase in the annualised FY26 pre-tax savings target to $50m. Ansell's outlook for the second half of FY24 includes expectations of improved performance in the Healthcare segment and continued strong performance in the Industrial segment. The company aims to demonstrate progress past the recent period of post-pandemic market disruption and to showcase the benefits of the work done to strengthen its business and execute its growth and productivity strategy.