KUALA LUMPUR (Nov 24): Karex Bhd saw its net profit in the first quarter ended on Sept 30, 2023 (1QFY2024) more than double to RM5.26 million, or up by 129.22% from RM2.29 million a year ago, on favourable sales mix, continued normalisation of raw materials and freight rates.

Consequently, earnings per share rose to 0.50 sen from 0.22 sen.

In a Bursa Malaysia filing on Friday, the condom manufacturer said its quarterly revenue fell 10.7% to RM129.51 million from RM145.03 million on the back of slight delay in shipment.

Meanwhile, the group also declared an interim dividend of 0.5 sen per share.

On a quarterly basis, the group’s net profit came in higher from RM3.94 million registered in the immediate preceding quarter (4QFY2023) while revenue fell from RM134.87 million.

On its outlook, further pressure on businesses due to uncertainty in the global economy contributed to the closure of several condom manufacturers worldwide.

“This coincides with a period when global humanitarian aid efforts are re-shifting their focus on the fight against HIV/AIDS to make up ground on the targets set out by the Joint United Nations Programme.

“In combination, these factors have resulted in an unprecedented demand for condoms and lubricants with a decreasing number of qualified manufacturers,” it said.

Shares in Karex finished 0.5 sen or 0.74% lower to 67 sen, giving it a market capitalisation of RM700.63 million.

Year to date, the stock has fallen by 8.22%.