Ansell became one of the hottest companies in Australia when the pandemic hit, but now its revenue has fallen over 17% for the past six months.
👉 Background: Ansell is an Australian company that manufactures industrial and medical gloves, founded way back in 1929. And yes, it previously manufactured condoms too but it sold that division in 2017
👉 What happened: During the pandemic, when hygiene was critical and everyone was hyper-vigilant, Ansell became one of the hottest companies in Australia. Because of the huge demand for its products and delays in global logistics, Ansell ordered BIG.
👉 What else: Now it’s come to bite them in their rubbery-backside because its revenue has fallen over 17% for the past six months. And net profit also dropped over 17%. Sadly, it looks like Ansell didn’t quite read the room when the rubber hit the road.
💡The pandemic hangover is real and some companies are still nursing a sore head. Early in the pandemic, we had big retailers like Myer, David Jones, Bunnings and Coles struggle to secure enough stock to fill their shelves.
💡To keep up with the demand, many companies, including Ansell had to lift their capacity. We’re talking a lift of anywhere between 30 - 100 per cent in the early stages of the pandemic.
💡As the pandemic subsided and the “normalisation” began, these companies were facing a rude reality. An oversupply of stock that crashed the profit-margin-party.
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