Karex expects revenue contribution from Europe to double in FY17

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KUALA LUMPUR (Nov 28): World biggest condom maker Karex Bhd expects revenue contribution from the Europe market to double in its financial year ending June 30, 2017 (FY17), thanks to its newly-acquired UK subsidiary, Pasante Healthcare Ltd.

Its chief executive officer Goh Miah Kiat said the slowdown in Europe will also help boost Karex's sales, as consumers there are more likely to opt for affordable products.

"We completed the (Pasente) acquisition in July 1 this year, so its sales were not consolidated into our FY16 account," he told a press conference, after the group's annual general meeting today.

"With Brexit and the financial crisis in the European region, more people will lose their jobs and consumption will skew towards more affordable products — that is an opportunity for players like us to tap into the market there, because in the past, [the] European market was predominantly occupied by major brands," said Goh.

In FY16, the Europe market contributed 10% of Karex's total revenue, said Goh, adding that this figure could "easily" double in FY17.

As at 3.21 p.m., Karex shares were down 2 sen or 0.78% at RM2.54, with 58,300 shares traded. Its market capitalisation stood at RM2.54 billion.