Protective gloves and condom maker Ansell expects acquisitions and changes to its business to start showing benefits this financial year.
Ansell has flagged a solid lift in underlying earnings after a 70 per cent slide in full year profit for 2013/14 due to costs from a major restructure of its operations.
Ansell's net profit fell 70 per cent to $US41.8 million ($A45.23 million) in the year to June 30, down from $US139.2 million ($A150.61 million) a year ago.
Excluding restructuring costs and asset impairments, underlying net profit rose 12.7 per cent to $US156.9 million ($A169.76 million).
Chief executive Magnus Nicolin said 2014 had been a transformative year for Ansell, and the group was now looking to get greater growth from its existing businesses.
"We believe that we now stand ready to reap some of the benefits from all of this good work, and that's what we're really expecting in FY15 (the 2014/15 financial year) to be all about," he said on Monday.
Mr Nicolin said earnings per share in fiscal 2015 were expected to grow by seven to 15 per cent.
Mr Nicolin said there was a general move around the world to upgrade to better, more protective products, in both the industrial and medical sectors.
In the medical sector, events such as the outbreak of the deadly Ebola virus in West Africa, and other infectious diseases, would likely contribute to growth in product demand in some emerging markets.
In June, Ansell announced $124.7 million in restructuring costs as it sought to become more efficient and make savings.
It reorganised business units, closed some manufacturing facilities, exited its US military gloves business, discontinued non-core brands, and cut staff and costs.
Ansell had said it would seek to boost organic growth, slow down the number of new product launches and work to improve its condoms business.
It also expected greater benefits in fiscal 2015 from the $US615 million acquisition of North American single-use glove supplier Barriersafe Solutions International.
Most major markets showed signs of improvement, but conditions in Australia, New Zealand, Russia and Turkey were weak.
Morningstar analyst Chris Kallos said Ansell's businesses under the new structure - except sexual wellness - were looking very strong, and sales had come in more or less within market expectations.
Mr Kallos said Ansell's product development pipeline looked robust and recent acquisitions looked okay.
Shares in Ansell were 61 cents higher at $19.60 at 1513 AEDT.
ANSELL PROFIT PULLED BACK BY RESTRUCTURING COSTS
* Net profit of $US41.8m, down 70 pct from $US139.2m in 2012/13
* Revenue of $US1.59b, up 15.8 pct from $US1.37b
* Unfranked final dividend of 22 US cents a share, vs 22 Australian cents
Share
