Ansell Limited’s annual earnings took a USD 17 million hit from its withdrawal from Russia and the protective-garment manufacturer is now monitoring for increased disruption to its operations in Sri Lanka.
Ansell, an Australian Company which manufactures protective industrial and medical gloves, on Tuesday (23) stated that the economic crisis in Sri Lanka, where it operates two surgical and mechanical manufacturing plants, had increased the cost of production and caused shortages of essentials including fuel.
Ansell stressed that there has been limited disruption to its plants and that the facilities had been running efficiently with record output and higher-than-usual yields. The Company noted it is supporting local workers and their families, including with transportation and allowances to supplement salaries.
“We are carefully monitoring the situation. The key operational considerations are related to energy and local suppliers,” Ansell added.
Ansell reported earnings before interest and tax for the 12 months through June of USD 228.1 million. That was down 33% on a year earlier and included the USD 17.0 million impact of disruption to its Russia operations and eventual exit from commercial and manufacturing operations in the country.
Excluding the impact, earnings fell 27.5% on year.
Russia’s invasion of Ukraine increased Ansell’s costs for energy and certain raw materials, which it is trying to offset through price increases. It eventually decided it was not viable to operate in the country.