Lower earnings for Karex in FY17

KUALA LUMPUR: The world's largest condom maker Karex Bhd 's earnings fell more than half for the financial year ended June 30, 2017 due to lower gross profit margin and other one-off expenses in relation to corporate exercises. 

It announced on Tuesday the FY17 earnings fell 58% to RM27.94mil from RM66.68mil a year ago. Its revenue rose 5.2% to RM361.45mil from RM343.62mil. Its administrative expenses rose to RM38.87mil from RM28.49mil. 

However, for the fourth quarter ended June 30, its earnings slumped 76% to RM2.90mil from RM12.11mil a year ago. Its earnings per share were 0.29 sen compared with 1.21 sen.

Karex said revenue rose 10.8% or RM8.9mil to RM91.63mil from RM82.72mil due to additional sales contributed by the sexual wellness segment.

Result from operating activities fell due to higher distribution and administrative expenses. Correspondingly, profit before tax and profit after tax were lower as compared to the corresponding quarter in the previous year.

In the quarter, administrative expenses more than doubled to RM10.68mil from RM4.37mil.

On the prospects, Karex said the group continued to focus on developing its new products, expansion into new markets and own brand business. 

“The group remains optimistic about the progress in FYE 2018 and the prospects for growth within the condom industry overall,” it said.

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