KAREX 5247 Share Price

The revenue for the financial year under review (“FY2024”) of RM507.8 million represents a decrease of approximately 4.6% in comparison to the corresponding period from the previous year due to slower sales from the condom market owing to shifts away from large institutional tender buying trends as well as increased competition for medical products. Despite the provision of an impairment to our glove operations, profit after tax increased to RM23.4 million, representing an increase of over 123.7% in comparison to the previous financial year. Moving Forward, 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. The Group continues to offer a unique proposition of a portfolio containing an unparalleled variety of products and packaging as well as possessing the regulatory expertise to export its products to the most extensive range of markets amongst manufacturers.

Revenue recorded a record revenue total of RM 122.7 million which was an increase of approximately 23.3% in comparison to the immediately preceding quarter. This is mainly driven by an increase in condom sales across all markets as well as an increase in the sale of personal lubricants. Several shipments to Asia and Americas regions that were previously delayed by vessel shortages were successfully shipped in 4Q2022. Despite record sales, high raw material prices and the implementation of a new minimum wage led to a RM3.4 million loss after tax.

Revenue totals grew by approximately 7.9% to RM 103.5 million in comparison to the immediately preceding quarter driven by higher condom sales volume from the tender market in particular. However, the less favourable sales mix coupled with higher raw material costs impacted our profitability margins compared to the previous quarter resulting in a loss after tax of RM 2.8 million for the quarter.

The Group recording a loss before tax of RM 7.8 million for the quarter in spite of the improvement in terms of sales from the previous quarter as a result of the unavoidable operational expenses and elevated logistic costs.

Revenue in 1QFY2021 recovered by 11.7% to RM 101.2 million as compared to the preceding quarter, which was characterised by disruptions to operations from the MCO. As manufacturing operations begin to return to the new normals and logistic networks continued to reopen, condom sales lead to a recovery in revenue from the previous quarter. The heightened emphasis on hygiene also resulted in an increased demand for medical products such as probe covers and catheters during the quarter. Profit before tax for the quarter improved by 84.3% to RM 7.0 million in comparison to the immediate preceding quarter.

Revenue in 3QFY2020 scaled back by 9.1% to RM 99.2 million as compared to the preceding quarter of RM109.1 million due to limited operating capacity during the Movement Control Order, which had an impact on both production volume as well as export capabilities. The lower condom sales volume coupled with additional operational expenses incurred have resulted a lower profit before tax of RM 32,000 and loss after tax of RM 353,000.