Full Year 2024 Ansell Ltd Earnings Call Transcript
Key Points
- Ansell Ltd (ANSLF) reported strong cash flow results, with operating cash flow at just under $168 million, the second-highest in the last decade.
- The company achieved a record EBIT margin of 16.5% in its industrial segment, driven by sales growth, cost favorability, and APIP savings.
- Ansell Ltd (ANSLF) successfully reduced inventory by $68 million, improving cash conversion to 131% while maintaining customer service levels.
- The acquisition of Kimberly-Clark Professional PPE (KBU) is on track, with initial integration showing strong cultural fit and positive customer feedback.
- The company received recognition for its sustainability efforts, achieving a gold medal with EcoVadis and a top rating from Morningstar Sustainalytics.
- Ansell Ltd (ANSLF) experienced a tick up in recordable injury rates due to the consolidation of Careplus, now Ansell Seremban, which has a higher injury rate than the company average.
- The company faced challenges in reducing water withdrawals and has extended its target to FY27.
- Healthcare segment sales were down 8% due to customer destocking and lower production levels, impacting EBIT margins.
- The Red Sea shipping disruptions caused delays in fulfilling surgical orders, deferring some revenue to FY25.
- Raw material costs, particularly nitrile and natural rubber latex, are expected to increase in FY25, potentially impacting margins.
Thank you for standing by, and welcome to the Ansell Limited FY24 full year results. (Operator Instructions).
I would now like to hand the conference over to Mr. Neil Salmon, Managing Director and Chief Executive Officer. Please go ahead.
Thank you. Good morning to you in Australia. Good morning to people around the world all. Good all times a day to people joining from around the world and listening in to our presentation of our fiscal year '24 results. And I thank you for your time and your interest in Ansell.
I will begin as usual with our summary of our safety and sustainability highlights you could move to page 5. So overall, this page summarizes a lot of progress. And it's also a reminder that the goals we've set out under these headlines are challenging. They require a lot of success to get right and our progress will not always be in a straight line.
And so I'm going to begin with a couple of examples of this. Firstly, for the first time
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