KUALA LUMPUR (May 30): Karex Bhd sold more condoms but its net profit shrank 28.3% in the third quarter ended March 31, 2017 (3QFY17), dragged down by higher distribution expenses.

The world's largest condom maker posted net profit of RM6.9 million or 0.69 sen per share compared with RM9.63 million or 0.96 sen per share in the previous corresponding quarter.

Quarterly revenue, however, grew 4.53% to RM92.22 million from RM88.22 million a year ago due to additional sales contributed by the sexual wellness segment, Karex said in a filing on Bursa Malaysia this evening.

For the cumulative nine-month period ended March 31, 2017 (9MFY17), revenue increased by 3.4% to RM269.8 million from RM260.9 million a year ago. However, its net profit contracted 54% to RM25.05 million from RM54.57 million in the previous corresponding period.

The earnings for the nine-month period had been pulled down by one-off expenses related to corporate exercises as well as trademark and registration related expenses, the group explained.

"Efforts have been focused on developing the group's own brand business and continued expansion into new markets. (We) remain optimistic about the progress to date and the prospects for growth within the condom industry overall," Karex said.

Shares in Karex closed unchanged at a month-low RM2.05, with a market capitalisation of RM2.06 billion.