Karex active, falls 5.81% as 2Q earnings slide

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KUALA LUMPUR (Feb 26): Shares in Karex Bhd, the world's largest condom maker, fell 5.81% in active trade this morning after its net profit halved to RM1.4 million in its second quarter ended Dec 31, 2018, from RM3.17 million a year ago, due to a less favourable sales mix.

At 9.25am, Karex fell 2.5 sen to 40.5 sen with 5.50 million shares traded.

This was as the 2.7% rise in revenue — to RM113.55 million from RM110.52 million on higher sales from its sexual wellness segment due to more tender orders being shipped out — was more than offset by a stronger rise in cost of goods sold.

For the first half of FY19, Karex’s net profit fell 54.3% to RM3.37 million from RM7.38 million a year ago, while revenue retreated 5.7% to RM205.71 million from RM218.11 million.