The price of gloves, protective clothing and condoms is set to rise after manufacturer Ansell flagged price hikes to offset higher raw material costs.
Ansell - best known for its extensive condom product range - said the "significant increase" in market prices for its key raw materials, such as natural rubber and synthetic latex, over the past few months will hurt its second-half earnings per share by US4 cents, compared to the first half ended December 31.
Still, the company reaffirmed its annual EPS guidance of between $US1.00 to $US1.12 ($A1.30 - $A1.46), excluding the costs of its portfolio review. Ansell's sales and earnings margin are traditionally stronger in the second half of the financial year than the first half.
The portfolio review cost Ansell $US2.5 million, or US1.2 cents per share, in the first half.
Ansell's price hikes and cost cutting will come into effect at the end of June, with the benefit to flow through next financial year.
Morningstar healthcare equities analyst Chris Kallos said the underlying profit margin performance of Ansell's numerous divisions, with the exception of medical, was decent given their divestments last year and difficult macroeconomic challenges.
"They did have a surprisingly good outcome in sexual wellness, buoyed by China and Brazil," Mr Kallos told AAP.
Sexual wellness - the group's oldest and smallest division - booked a near 39 per cent jump in earnings before interest and tax (EBIT) to $US19.7 million ($A25.7 million) - which "strengthens their bargaining power" if they decide to sell it, he said.
The condom business could be sold for between $US300 to $US400 million ($A391 to $A521 million), Mr Kallos said.
Chief executive Magnus Nicolin said the review of sexual wellness was progressing with "strong interest from multiple parties".
"It is taking a little bit of time and is primarily related to the fact that we need to extract the business from core Ansell.
"The sexual wellness business is the oldest business in the Ansell portfolio, going back 120 years, so needless to say a lot of our systems are built on the sexual wellness platforms so that's part of the reason," Mr Nicolin said during the group's interim earnings briefing.
At 1423 AEDT, Ansell shares were down 48 cents, or 2.2 per cent, to $21.64.
Mr Nicolin said the company remains on the lookout for more acquisitions just weeks after buying UK-based healthcare goods firm Nitritex for $94.2 million.
First-half EBIT jumped 5.3 per cent to $US104.6 million ($A136.3 million), while net profit rose fractionally due to a fall in revenue and higher tax costs.
Revenue fell 1.1 per cent, hurt by adverse currency fluctuations and divestments, including the sale of its footwear protection business Onguard to Dunlop for an undisclosed sum.
ANSELL POSTS FLAT FIRST-HALF NET PROFIT
*Net profit rose 0.3pct to $US69.8m ($A91.0 m)
*Revenue fell 1.1pct to $US775.8m ($A1.0 billion)
*Interim dividend rose 0.25 cents to 20.25 US cents a share, unfranked
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