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REPORTING SEASON: Ansell Limited (ANN)

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Figure 1: Ansell Limited 12 month chart

 

Ansell Limited (ANN) – Outlook statement clouds result

– Ansell (ANN) has reported an increase in underlying Net Profit After Tax (NPAT) of almost 20% to $US188 million. The underlying result excludes a one off restructuring cost of $US123 million. Factors driving the result included an encouraging performance from the emerging market business, which makes up 24% of total sales. Sales for this segment rose by only 2.4%, however by excluding the contribution of Russia and Brazil, sales rose by 12.4% (challenging economic conditions in the latter jurisdictions saw sales fall by 37% in Russia and by 7% in Brazil).

– In broad terms the results was shy of consensus expectations in terms of revenue although the biggest impact on the share price, was the outlook offered by ANN. The group was cautious in its outlook due to the influence of volatile currency markets and the impact of higher rates of taxation.

– ANN indicated that if currency markets maintain levels seen towards the end 2015, Earnings Per Share (EPS) will be negatively impacted by as much as 20 cents p/share. At the same time the underlying tax rate is seen rising to as much as 21%. However positive contributions to the performance of the core business are expected to include the continued delivery of restructuring benefits, contributions from completed acquisitions and price increases which will partially offset the impact of currency movements. Together these elements are predicted to have a positive influence of between 10-20 cents per share which will see FY16 EPS in the range of $US1.05- $1.20 compared to $1.225 in FY15.

– ANN declared a final dividend of 23 cents p/share for a full-year payout of 43 cents. The final payment has a record date of 17 August 2015 which will be made on 10 September 2015.

 

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Tom Piotrowski, Market Analyst,