Ansell (ANN) – Gloved up

Ansell manufactures hand and body personal protective equipment (PPE) and its global business operates through two divisions, i.e. healthcare and industrial. Ansell is headquartered in Richmond in Melbourne.

Ansell (ANN) reported FY25 EPS at the top end of company guidance and ahead of market estimates, as strong earnings from its industrial arm offset softer healthcare earnings. In Ord Minnett’s view, the result was an impressive performance from the personal protective equipment (PPE) manufacturer, given it had to manage the integration of Kimberly-Clark PPE business (KBU) acquisition and navigate the treacherous waters of American tariff policy in the second half of FY25. Ansell guided to FY26 EPS growth ahead of prior market expectations and also upgraded forecast savings from the KBU purchase, albeit those will come from FY27.

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The company is confident the specific requirements, such as elevated cut resistance, of its high-end customer base will prove strong enough to outweigh the impact on demand of the 7% price rise it imposed to counter the tariffs on imports to the US. More broadly, we do see a risk of a reduced industrial activity from the macroeconomic effects of the White House’s imposts in some of the countries in which Ansell operates. Ansell is a well-run business and the KBU acquisition has increased its exposure to higher-margin industry segments, while cost savings and improved reliability in its manufacturing plants in recent times adds to its investment appeal. That said, valuation means we maintain our Hold recommendation on Ansell, while our target price stays at $36.20.