Karex improves cash conversion cycle via credit control, standardised payment terms

Karex CEO Goh Miah Kiat

KUALA LUMPUR: Karex Bhd has managed to improve its cash conversion cycle amid the challenges posed in managing inventories during initial stages of the COVID-19 pandemic due to improvements to credit controls and standardising payment terms.

The condom manufacturer said this helped it continue to preserve agility on its balance sheet with a sustainable cash balance of RM46.3 million and shareholders’ funds totaling RM480.1 million, translating into a gearing ratio of 0.11 times for the financial year (FY) ended June 30, 2020.