KUALA LUMPUR: Karex Bhd
expects the global condom market to outpace global economic growth, driven by rising sexual health awareness and a shift to private sector models.
“This paradigm shift has resulted in a rapid consolidation of the industry over the last few years and favoured larger manufacturers that have invested in modernisation and innovation. The adoption of e-commerce is also another important factor that has accelerated the ability of brands to deliver awareness on product differentiation and
gain market share in the process,” Karex said in the notes accompanying its financial results.
The group expects to continue to capture more high-value orders of both condoms and personal lubricants by leveraging on its proven reputation within the industry.
“Although the dynamic shift between the tender and commercial markets will result in a disruption to traditional condom sales channels in the short term, the group is confident that this will result in growth opportunities in the medium term,” Karex said.
In the first quarter ended Sept 30, Karex’s net profit tumbled 73.4% to RM1.4mil, compared with RM5.3mil, translating into earnings per share of 0.13 sen, down from 0.50 sen previously.
The lower profit was mainly due to unfavourable foreign exchange movements during the quarter.
Revenue for the quarter rose 4.2% to RM135mil from RM129.5mil a year ago due to an increase in the sales of condoms and personal lubricants.
