Karex hit by forex loss in 3Q but remains bullish on prospects

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Karex hit by forex loss in 3Q but remains bullish on prospects

Post by Cals on Sun 29 May 2016, 23:55

Karex hit by forex loss in 3Q but remains bullish on prospects

By Gho Chee Yuan / theedgemarkets.com   | May 27, 2016 : 6:40 PM MYT 

KUALA LUMPUR (May 27): Karex Bhd's net profit fell 36.7% on year to RM9.63 million or 0.96 sen per share in its third quarter ended March 31, 2016 (3QFY16), from RM15.21 million or 1.63 sen per share previously, due to foreign exchange losses.

In a filing with Bursa Malaysia, the world's largest condom maker by capacity explained that the substantial drop on earnings was attributed to the foreign exchange (forex) loss of RM4.8 million in the 3QFY16, compared with forex gain of RM3.5 million in the previous corresponding quarter.  

Revenue, however, jumped 23.6% to RM88.22 million, from RM71.39 million, due to higher volume from condom commercial sales segment.

The board did declare dividend for the quarter under review.

For the cumulative nine months (9MFY16) ended March 31, its net profit grew 28% to RM54.57 million or 5.44 sen per share, from RM42.59 million or 4.64 sen per share in the previous corresponding period. Revenue rose 19.4% to RM260.89 million, from RM218.53 million a year earlier.

Notwithstanding lower earnings in 3QFY16, Karex remains optimistic on its prospects, following continuous strong demand for its products.

Share price of Karex closed unchanged at RM2.32 today, for a market value of RM2.33 billion.

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