Karex' 2Q profit jumps 56% as it sees higher condom sales

by **Cals** Thu 25 Feb 2016, 01:41

Karex' 2Q profit jumps 56% as it sees higher condom sales

By Kamarul Anwar / theedgemarkets.com | February 24, 2016 : 7:15 PM MYT

KUALA LUMPUR (Feb 24): Karex Bhd reported a 55.7% jump in its net earnings for the second quarter ending June 30, 2016 (2QFY16) to RM22.65 million or 3.39 sen per share, thanks to sale of higher margin product, lower latex price and a one-off gain from a bargain purchase amounting to RM4.7 million.

It recorded a net profit of RM14.55 million or 2.39 sen per share in 2QFY15, its bourse filing today showed.

The world’s largest condom manufacturer also posted a 25.43% revenue growth in the quarter to RM96.58 million, which came mainly from higher condom sales from the group’s tender segment, a statement from the company showed.

“We are pleased with our second quarter financial performance and maintaining momentum across the group. Our focus remains on identifying innovative ideas to distinguish ourselves from other manufacturers in the condom industry and to enable us to offer greater value to our customers,” said Karex chief executive officer Goh Miah Kiat, in the same statement.

“At the same time, we are determined to remain competitive by continuously pursuing opportunities to improve cost efficiencies, such as incorporating greater degrees of automation in our manufacturing processes,” he added.

Karex’ net profit for the six months ended Dec 31, 2015 (1HFY16) was RM44.94 million or 6.72 sen a share, up 64.13% from the previous year’s RM27.38 million or 4.51 sen per share.

Its revenue was up by 17.36% to RM172.67 million, from the previous corresponding period’s RM147.13 million.

As demand for its products continue to be strong, Karex said it is optimistic of its prospect for the remainder of FY16.

Karex’ counter rose by 11 sen or 2.78% to close at RM4.06 today, valuing the company at RM2.7 billion.