(April 4): Shares in Ansell reversed course on Friday after having tumbled 25% from their February highs in the previous session, as the company unveiled plans to fully offset the tariff increases through pricing.

The Australia-listed company, known for its medical gloves and surgical gowns, gained 2.6% in early trade on Friday, after having plunged as much as 16.4% a day earlier, following the announcement of harsher-than-expected US levies that will reshape global trade flows.

Analysts had warned that Ansell is among the most exposed companies to the new tariff regime, given its extensive manufacturing footprint across affected countries.

However, Ansell said in a statement on Friday that it is maintaining its fiscal 2025 forecast for adjusted earnings per share in the range of 118 US cents to 128 US cents.

A White House annexure details the planned tariff hikes: 24% on imports from Malaysia, 37% on Thailand, 44% on Sri Lanka, and 27% on India — all countries where Ansell operates major production facilities.

It also manufactures in Vietnam, one of the worst-hit countries by the new duties, and maintains a production plant in China, alongside smaller facilities in Portugal, Lithuania and Brazil.

"We expect Ansell [to] reassess its outsourcing strategy, given the varying tariff rates across Southeast Asia, ranging from 46% in Vietnam to 24% in Malaysia," Jefferies' analysts noted.

Despite the immediate market reaction, Ansell has signalled confidence in its ability to mitigate the tariff impact.

During its half-year results, the company outlined plans to "substantially offset" the cost pressures through a combination of price increases, diversifying its production base and relocating some manufacturing outside China.

While these measures offer a roadmap to adaptation, analysts remain cautious. Craig Wong-Pan of RBC Capital Markets estimates that, without mitigation, the tariffs could pose a hit of A$220 million to A$230 million (US$139.46 million, or RM618.85 million) to Ansell's 2026 earnings.

Citi echoed concerns from its peers, describing Ansell as the medical equipment maker most negatively exposed to the tariff shifts.

With profits and margins recovering after a prolonged oversupply of products, the company now faces a fresh test — whether it can successfully navigate these geopolitical headwinds without derailing its rebound.

Uploaded by Jason Ng