KUALA LUMPUR (Feb 22): Karex Bhd saw its net profit grow 27 times to RM2.79 million in the second quarter ended Dec 31, 2020, from RM102,000 a year earlier, thanks to strong condom sales and noteworthy personal lubricant sales.

Revenue rose 6.1% to a record high of RM115.75 million, from RM109.09 million previously, the group's bourse filing showed.

"In spite of the disruptions caused by the Covid-19 pandemic, condom sales volumes to both the tender and commercial markets continued to expand," said Karex.

On a quarter-on-quarter basis, however, the second-quarter net profit was 37.5% lower compared with RM4.46 million in the first quarter, despite a 13.8% increase in revenue from RM101.73 million.

This, the group said, was due to a less favourable sales mix coupled with higher Covid-19-related costs and one-off corporate exercise expenses.

For the cumulative six-month period ended Dec 31, 2020, Karex reported a net profit of RM7.24 million, versus a net loss of RM65,000 in the previous corresponding period due to a more favourable sales mix.

Revenue for the period grew 6.18% to RM217.48 million from RM204.82 million, on the back of stronger condom sales in the commercial market, particularly in the Asia and Americas regions.

On prospects, the group remains confident that it is uniquely poised to overcome the operational hurdles, arising from the ongoing Covid-19 pandemic, in order to take advantage of potential opportunities presented by the renewed global emphasis on hygiene and disease prevention.

Karex noted that condoms remain an essential tool for family planning as well as preventing the spread of HIV and other sexually transmitted infections.

"Our manufacturing experience, cost competitiveness and breath of offerings are compelling competitive advantages that will allow us to capture orders within the condom space that has been shifting from a government subsidised model to one that is more commercial in nature during recent times," said Karex.

It added that its branded segment is also expected to expand into new regions during the year, enabling Karex to continue to capture a greater share of the value within the industry.

Karex's shares closed half a sen or 0.66% lower at 75 sen today, valuing the group at RM790.1 million. Over the past year, the counter has grown 66.7% from 45 sen.