Karex posts 27% rise in 1Q net profit

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KUALA LUMPUR (Nov 28): Karex Bhd posted a net profit of RM12.83 million for the first quarter ended Sept 30, 2014 (1QFY15) — up 26.7% from RM10.13 million a year ago, while revenue grew by 7.2% to RM70.1 million in 1QFY14.

The 1QFY14 net profit and revenue numbers were based on Karex estimates on its consolidated results, which did not account for the financial performance of its recently acquired subsidiaries.

“The higher revenue and profit before tax reported was attributed to higher volume of condom sales, achieved as a result of the installation of additional manufacturing capacity and sales of higher profit margin products,” said the condom manufacturer.

Favourable currency exchange rates and raw material prices also contributed to its financial performance.

Karex expects the consumption of condom to rise in tandem with population growth and awareness of the importance of its use, foreseeing “good prospect” for FY15, as it continues to secure new orders on the back of rising demand.

“With the completion of the acquisition of Global Protection Corp on Oct 3, the group further foresees additional positive contributions to the group, from 2QFY15 onwards,” it added.    

Karex share price closed unchanged at RM3.04, giving it a market capitalisation of RM1.24 billion.