Ansell (ASX:ANN) downgrades FY22 guidance

Company News

by Lauren Evans

Ansell (ASX:ANN) has downgraded its guidance for the 2022 financial year after a weaker than expected first half performance.

The global brand said margins were lower in the first half due to operational challenges from Covid-19, as well as softer demand. Ansell now anticipates FY22 earnings per share guidance to be in the range of 125 cents to 145 cents, compared with 175 cents to 195 cents provided on November 11 last year. 

Angel noted it had not factored in any impact of omicron beyond the impacts known to date.

The company said it expects to deliver FY22 first half sales of US$1,009 million, earnings before interest and taxes of US$111 million and earnings per share of US61 cents. 

Following imposed shutdowns on manufacturing early in the financial year, Ansell's recovery of lost output was slower than anticipated as reduced labour availability, partly from Covid-19 isolation requirements and continued logistics disruption lengthened the delivery time of getting product to its customers. 

Shares in Ansell (ASX:ANN) 14.5 per cent lower at $26.70. 

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