Ansell increases guidance on back of earnings surge as KBU integration progresses ahead of schedule

Personal protective equipment manufacturer Ansell (ASX: ANN) has recorded double-digit growth at both its top and bottom line for the first six months of financial year 2025.

Ansell reported EBITDA of $127.4 million for the period on total sales of $1.02 billion, representing growth of 12.5% on an organic constant-currency basis.

The company has increased its earnings per share (EPS) guidance range to between US$1.18 and US$1.28 on the back of these results.

Kimberly-Clark acquisition

The sales total included organic constant-currency growth of 7.4% from Kimberly-Clark’s personal protective equipment business (KBU), which Ansell acquired in July for $635m.

Ansell has been operating KBU under a transitional agreement, with Kimberly-Clark continuing to provide essential commercial and business support services.

Cutovers to Ansell systems will occur in a phased manner during the second half of the year and the company expects the involvement of Kimberly-Clark to conclude by year-end.

Savings program

Ansell’s operating cash flow of $53.5m for the period was supported by cash conversion of 104% from strong working capital management.

The company’s accelerated productivity investment program (APIP) remains on track to deliver targeted annual savings of $45 million.

EPS sat at US55.7 cents, excluding significant items such as one-off costs associated with the APIP, as well as the KBU transaction and integration.

Strong growth

Chief executive officer Neil Salmon said Ansell had achieved strong growth and made good progress against key strategic objectives in the period.

“During the first half, we began to implement integrated organisational and go-to-market structures designed to leverage the best of KBU and Ansell’s positions in the attractive scientific vertical.”

“We expect to complete the integration of KBU and exit transitional service arrangements earlier than originally planned, potentially accelerating the achievement of our $10m net pre-tax cost synergies target.”

Second-half results

Mr Salmon said the second half of the year promised similarly strong results.

“Entering the second half, we see a path to continued organic constant-currency sales growth, despite subdued industrial demand and uncertainty stemming from changing trade policies in various countries,” he said.

“[This will be] underpinned by the opportunity and flexibility provided by Ansell’s balanced end-market exposure and diversified global supply chain.”