Ansell announces ‘biggest sales increase in eight years’

Ansell, the Australian manufacturer of medical protective products, has reported the largest increase in sales seen for eight years in its full year results.

However, the company noted that there was “substantial pressure” in earnings due to the increasing wholesale costs of natural products like latex, used to produce medical gloves.

Ansell highlighted the acquisition of Chinese condom manufacturer, Jibbson, which as a ten per cent share in the “fast growing” Chinese condom market. This represents the first Ansell acquisition in six years and the company said it would look for similar growth opportunities across the world.

Doug Tough, Ansell’s chief executive officer, commented: “The earnings before income tax impact of a 73 per cent increase in natural rubber latex prices in 2006 which occurred in the second half, could not be recouped with price increases, manufacturing productivity improvements and overhead cost controls.”

“More than 50 per cent of our products contain no latex and so we were able to withstand relatively well, the unprecedented cost impacts on our latex-containing products,” he added.

In July, the company said it had been forced to increase the cost of its natural rubber latex gloves due to the fact that natural rubber prices had increased by 120 per cent during the last 18 months.

Ansell said it would do its best to avoid passing on the costs to its customers.

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