KUALA LUMPUR (Feb 23): The world's biggest condom maker Karex Bhd’s net profit jumped three-fold to RM7.32 million for the second quarter ended Dec 31, 2023 (2QFY2024) from RM2.03 million a year earlier, lifting earnings per share to 0.7 sen from 0.19 sen, as it sold more high margin products.

This is despite quarterly revenue dipping 0.89% to RM127.37 million from RM128.51 million, the group's bourse filing on Monday showed.

For the six months ended Dec 31, 2023 (1HFY2024), Karex's net profit more than doubled to RM12.58 million from RM4.32 million in 1HFY2023, though revenue slipped 6.09% to RM256.88 million from RM273.54 million.

“This decrease [in revenue] was primarily attributed to slower condom sales in the tender market but was also partially offset by strong personal lubricants sales, which performed particularly well during this period,” the company said.  

“Slower tender market sales also meant that the sales during the period were more heavily weighted towards higher margin products, which led to an improvement in overall profitability during this period,” it added.

Going forward, Karex said it expects revenue growth on the back of continued strong demand for condoms and lubricants, as well as the group’s continued new product releases.

“An improvement in group profitability will however be predicated on the success of managing costs stemming from the global uncertainty that resulted in supply chain disruptions and inflationary pressures,” it added.

Shares in Karex ended 2.5 sen or 2.99% higher at 86 sen on Monday, giving the company a market capitalisation of RM900.58 million.