Karex aims to turn around Medical-Latex by end-2016
Published on: Tuesday, December 01, 2015
SHAH ALAM: Karex Bhd, the world's largest condom manufacturer, aims to turn its recently-acquired Medical-Latex (Dua) Sdn Bhd to profitability by end-2016.Karex Chief Executive Officer, Goh Miah Kiat, said after the acquisition, Karex had been increasing Medical-Latex's capacity utilisation to 70-75 per cent from 30 per cent earlier."We are very strong in manufacturing, so we think it would not be very difficult for us to turn around the loss-making Medical-Latex.
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"We have started to pass on some orders (manufacturing) to them. Our orders are big and Karex is already running at full capacity," he told reporters after Karex annual general meeting here, Monday.He said Karex had always kept its utilisation rate at 70-75 per cent as it wanted to remain flexible, in terms of delivering the products to customers. Moving forward, he said the group was looking to acquire more brands in order to create more value to its business, as well as widen its market and growing the capacity."In some countries, getting into their markets is quite difficult, so we might enter through existing brands. We are looking at a few (brands) currently, which could boost Karex's value. "We are now reaching our five billion capacity as compared to only three billion when we launched our initial public offering back in 2013. We want to expand it to six billion next year and seven billion in 2017," he added.Stay up-to-date by following Daily Express’s Telegram channel.
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The higher revenue was due to higher volume from condom commercial sales segment, as well as improved operating activities by 57.3 per cent attributable to gain on foreign exchange, higher profit margin products and lower raw material prices, it said in a filling to Bursa Malaysia Monday. – Bernama
