KUALA LUMPUR: Karex Bhd, the world’s largest condom maker by capacity, wants to increase its share of the global condom market to 18% next year from 13% now, underpinned by new product launches.

Its chief executive officer Goh Miah Kiat said the group is launching a new brand of polyisoprene condoms, a newly-developed alternative to natural latex. “We are now getting the relevant approvals from the authorities and are hopeful to launch this new product by the first half of 2015,” he told reporters after Karex’s annual general meeting (AGM) yesterday.

Goh said the product will first be launched in the United States and European markets, followed by Brazil and Russia which are big markets for condoms. “Subsequently, the product will be introduced to other regions such as Southeast Asia,” he said.

Another key factor contributing to the growth of Karex’s market share next year is the increasing global demand for condoms, which is projected to grow by 9% per year. “In line with this, we will increase our capacity to five billion pieces in 2015 to meet the market needs,” said Goh.

On its earnings outlook for the current financial year ending June 30, 2015 (FY15), Goh said it expects to maintain double-digit growth.

Karex recorded 12.5% and 16% growth in net profit for FY13 and FY14 respectively. This is on the back of an average 23% growth in revenue for the past three financial years. “Historically, we have been recording double-digit growth over the past three financial years,” said Goh.

On the weakening of rubber prices, he said while it will definitely be credit positive for the group, the effect will not be significant.

Earlier at the AGM, Karex shareholders approved a payment of a first and final dividend of 2.5 sen per share totalling RM10.1 million for FY14, payable on Dec 22. This represents a dividend payout of 29% of its FY14 net profit.

This article first appeared in The Edge Financial Daily, on November 28, 2014.