Condom maker Karex release its fourth quarter and full year results with Q4 recording a revenue of RM123.9 million representing an 8.1% decrease from the same quarter in the previous financial year. The group said this was due to a decrease in the sales of condoms, in particular those sold through Tender market channels however it was offset by an increase in sales of personal lubricants that continued to surpass previous quarterly sales records.

With a sales mix comprising of less than 17% of tender market sales for the 4QFY2024, gross profit margins improved to 35.3% during the quarter. The group added that the overall profitability was however affected by the provision of an impairment to its glove operations which resulted in a reduction to profit before tax and profit after tax to RM5.3 million and RM4.8 million respectively.

As for the full year, the group's revenue for FY2024 was RM507.8 million representing a decrease of approximately 4.6% in
comparison to the corresponding period from the previous year. This it said was 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. Nevertheless, its profitability during the year improved with gross profit margins increasing to 33.7% from the previous financial year's total of 25.5%. Despite the provision of an impairment from the glove operations, profit after tax also increased to RM23.4 million, representing an increase of over 123.7% in comparison to the previous financial year.

The global condom market is expected to grow at a rate exceeding the global economy's over the next few years. This is
driven by increased sexual health awareness as well as a shift away from government procurement models in favor of private
sector models in many markets. This paradigm shift has resulted in a rapid consolidation of the industry over the last few
years and favored larger manufacturers that have invested in modernization and innovation. The adoption of e-commerce is
also another important factor that has accelerated the ability of brands to deliver awareness on product differentiation and
gain market share in the process

Looking ahead, 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. It 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.