Karex 1Q net profit drops 63.5% to RM8.14m on lower forex gain, higher expenses

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KUALA LUMPUR (Nov 29): Karex Bhd reported a 63.5% fall in net profit to RM8.14 million or 81 sen a share for the first quarter ended Sept 30, 2016 (1QFY17), from RM22.28 million or RM2.22 a year ago, due to lower foreign exchange gain.

The lower profit was also attributed to higher operating, administration and one-off corporate exercise expenses with the consolidation of newly acquired Pasante Healthcare Ltd.

Revenue rose 5.2% to RM80.04 million from RM76.09 million largely due to the consolidation of sales from Pasante.

The group proposed a final single tier tax exempt dividend of two sen per share for FY16, payable on Dec 16.

“We have also broadened our business and expanded into new business segments in the United Kingdom through Pasante,” the company said.

Chief executive officer Goh Miah Kiat said the company is looking forward to integrating its new business in the UK as well as its recent acquisition of the Trustex brand in the United States.

“These new acquisitions will see ample cross-selling opportunities in months to come.  For our ONE brand, we are excited about the new launch of our custom-fit condoms as well as our new tie-up with a hypermarket chain of more than 5,000 stores across the US.

“In short, we are optimistic of our FY2017 performance,” said Goh

Karex shares closed unchanged at five sen each today, giving it a market capitalization of RM2.5 billion.