Founded in the 1890s Ansell Limited (ASX: ANN) is one of Australia’s oldest (and some might say most successful) manufacturing companies. Over its journey, it has manufactured everything from car tyres, gas masks, condoms and weather balloons.
Ansell is a global business with sales operations in over 50 countries and end-users in many more. According to its Annual Report, Ansell estimates that over 90% of revenue is sourced offshore with developed markets generating most of the takings. Importantly, a large majority of their future sales is expected to come from emerging markets which will only grow as global socio-economic prospects improve.
Ansell is a market leader in the manufacturing of several safely products for the healthcare industry, some of these products include the examination and surgical gloves and heavy-duty protective gloves for chemical handling (leveraging a strong presence in the industrial sector). Their competitive position is further strengthened by the fact most of their products are patented and must comply with stringent standards.
An important flow-on effect is their ability to push any generated profits in research and development (R&D) activities. This will ensure their product line is constantly evolving and pivoting to meet consumer demands. In my opinion, this is a fundamental aspect of any manufacturing process and can further solidify their market-leading position.
Management & Shareholder Alignment
Magnus Nicolin has been with Ansell since 2010 and, I think, is one of the reasons for the company’s continued growth and international expansion. Most importantly he is aligned to shareholders with his equity and performance rights.
Like all manufacturers Ansell is not immune to an increase in the cost of raw materials, this is compounded by the fact they are also subject to volatile commodity prices. In addition, operating in international markets opens the company up to currency volatility.
Ansell is a global leader in its field and much like CSL Limited (ASX: CSL) Ansell is the envy of its global peers –- something every Australian should be proud of. With a growing market share and a long track record of success, I plan to keep holding Ansell shares for years to come.
ACCESS OUR NEW SMALL CAPS INVESTING REPORT!
After searching through a market with over 2,000 shares, our lead expert investment analyst has narrowed it down to just 2 of his favourite small-cap pocket rocket share ideas in a FREE report to Rask Media readers.
Over the past five years, these two shares have gone from being 'tiny caps' to being serious contenders for the ASX 300.
Access the free report by clicking here now or enter your email below! Absolutely no credit card or payment details required.
Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Anthony owns shares in all companies mentioned.