CUSTOMERS of Ansell's surgical and industrial gloves are pulling back on new orders as they whittle down their bloated supplies, placing further earnings pressure on the manufacturer and forcing it to cut staff numbers and scale back production, The Australian has reported.
The "destocking" where customers use already purchased gloves rather than order new ones is expected to linger for a few more months, the chief executive of Ansell, Neil Salmon said, adding he did not expect a recovery until later this year.
For Ansell this would mean weaker earnings for 2023 as its profitability was hit by a range of costs flowing from efficiency programs and redundancies, IT investments and adverse foreign exchange movements.
The latest tale of woe from Ansell saw shares for the surgical and industrial gloves maker plummet as much as 16%, wiping $500m from the value of the company, after it announced it would be forced to temporarily slow production to "normalise" inventory.
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