Ansell is considering a sale of its condom business as it posts a 15% drop in full year profit to $159.1 million on a weak global economy and currency fluctuations.
Revenue was down 4.4% to $US1.57 billion. However, the result was within guidance and the company increased full year dividends by 1.2% to US43.5 cents.
A short time ago, the Australian condom maker’s shares were up by almost 15% to $A22.61.
The company indicated it may look at the sale of its sexual wellness business, which includes its condoms. Goldman Sachs has been retained to review options.
“We continually review our existing portfolio in a disciplined way,” Ansell says.
“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.”
Ansell says it’s SKYN condom brand grew 12% on the success of its “Feel everything” marketing campaign. Sales to China are up 28% and 11% in India.
In May, Ansell announced the sale of its footwear-protection business, Onguard, for $41.5 million.
“Success with growth brands, new products and the ongoing strength of our market positions gives us confidence that over the next 2 to 3 years we will realise our medium term goal of organic revenue growth in the low to mid single digits
even in a low growth economic environment,” says CEO Magnus Nicolin.
“Our continued investment in productivity while leveraging Ansell’s global scale should drive profit growth in the mid to high single digits supporting continued strong cash generation and improvement in returns on capital for the base business.”