Ansell considers selling off its condom business

ANSELL is considering selling its “sexual wellness” division, which performed strongly in a tough year for the company.

ANSELL is considering selling its condom business as the company launches a review of its “sexual wellness” division.

The company, which manufactures medical gloves and protective clothing along with condoms, lubricant and related items, is considering its options after the division performed strongly in a tough year for the company.

“Is its value greater with Ansell or to someone else? We are testing that through the review process,” managing director Magnus Nicolin told investors during this morning’s full year results call.

“We are going to be exploring and investigating where this business can go, we haven’t decided to sell and will only do it if it’s the right thing to do for shareholders.”

Ansell’s fiscal 2016 full-year profit fell 15.1 per cent to $207.8 million ($US159.1 million), amid a continuing weak global economy and adverse currency fluctuations. On a constant currency basis, net profit fell 2.5 per cent.

Ansell said its sexual wellness business — which includes condoms, personal lubricant and other items — was its best performer on the back of strengthened management, new products, and strong growth in emerging markets, including China.

The company last year took rival Durex to court over an alleged breach of its patent on the material used to make Ansell’s “natural feeling” SKYN brand condoms, which are made from lightweight polyisoprene rather than latex.

Ansell’s medical gloves business generated lower sales due to supply constraints and weakness in emerging markets partly because of constrained spending on public healthcare.

Chief executive Magnus Nicolin said fiscal 2017 would see the company increase its focus on opportunities for portfolio optimisation.

“We continually review our existing portfolio in a disciplined way,” Mr Nicolin said.

“This will include consideration of options for the sexual wellness business and opportunities to enhance our positions in the industrial and medical businesses with value-enhancing acquisitions.

“Goldman Sachs has been retained to assist us in the review of options for the sexual wellness business.”

Shares in Ansell were up $2.09, or 10.63 per cent, at $21.76 at 10.20am.

ANSELL PROFIT DOWN 15 PER CENT

* Annual profit down 15.1 per cent to $US159.1 million

* Sales down 4.4 per cent to $US1.57 billion

* Final dividend up half a cent to an unfranked 23.5 US cents per share.