Ansell is looking to ramp up its internal manufacturing of single use and exam gloves to have more control over operations, and Mr Salmon said the company would likely work with fewer suppliers moving forward.

“I would expect to move to a smaller network of suppliers who over time have shown a level of transparency, integrity and information sharing that is key for us to have full confidence that we know what’s happening in their facilities too - that will take time.”

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Demand for personal protective equipment has spiked throughout the pandemic and while the company expected prices to soften, COVID delays have left Ansell with inventory purchased when prices were higher than it must now offload for a lower fee.

Mr Salmon said he was confident this would balance out in coming months but noted labour costs would remain elevated as the company struggled to recruit reserve crews to cover shifts when workers got COVID.

“I think high rates of labour inflation are a feature of the industry.” he said.

The business will have to leverage other productivity initiatives to offset this.

“Some of those were delayed from the challenges with the pandemic. Our goal is to stay ahead of inflation with those and that’s achievable.”

Shares in the business jumped 1.6 per cent higher in the morning but dropped close to 1 per cent in the last hour of trade to $25.52. Analysts had already adjusted their forecasts in January after the company downgraded its guidance.

“While there are numerous issues at play, the majority are COVID-related, so we believe are more temporary than structural in nature,” Morgans analysts said.

Ansell declared an interim dividend of US24.5 cents, payable on March 9.

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