KUALA LUMPUR: Karex Bhd
returned to the black in the fourth quarter ended June 30, 2026 (4Q26), posting a net profit of RM3.8mil compared with a net loss of RM9.5mil a year earlier.
Revenue fell 16.2% to RM101.2mil from RM120.8mil in the previous corresponding quarter, while earnings per share stood at 0.36 sen compared with a loss per share of 0.90 sen previously.
“This was due to a decline in sales of condoms and personal lubricants particularly in the tender market in combination with less favourable foreign exchange rates in comparison to the preceding financial year.
“Notwithstanding the decrease in revenue, the receipt of the refunds from the tariffs imposed by the International Emergency Economic Powers Act (IEEPA Tariffs) on imports into the US and the rollout of successful price increases with customers improved profit margins during the quarter,” Karex said in the notes accompanying its financial results.
It noted that the absence of any substantial impairment provisions during the 4Q26 in comparison to the preceding financial year, also contributed positively, resulting in a profit after tax of RM3.8mil for the quarter.
For the full financial year, Karex recorded a marginally higher net profit of RM291,000 compared with RM208,000 in FY25, while revenue declined 7.2% to RM462.4mil from RM498.4mil.
The group attributed the weaker revenue to a challenging operating environment, including steep declines in humanitarian aid funding that affected tender market sales, less favourable exchange rates and logistics disruptions stemming from geopolitical tensions in the Middle East.
Karex declared a dividend of 0.5 sen per share for the quarter, bringing its total dividend for FY26 to one sen per share, unchanged from the previous financial year.
Looking ahead, the group expects the operating environment to remain challenging over the next 12 months amid geopolitical uncertainty, volatile foreign exchange rates and elevated raw material and logistics costs.
It said it would manage these pressures through improvements in operational efficiency, higher selling prices and supply chain diversification.
“Despite these near-term headwinds, the rationalisation of global manufacturing capacity present opportunities for established manufacturers with scale, technological capabilities and a proven record of quality and reliability.
“The group expects demand from the commercial segment to remain resilient while the institutional segment gradually adjusts to changes in humanitarian funding,” Karex said.
The group said its priorities for the coming year include scaling up its synthetic condom business, optimising its manufacturing footprint, deepening partnerships with global customers and improving margins as pricing adjustments and operational initiatives take effect.
