Karex: World's Largest Condom Maker Says Sales Down By 40% Due To Lockdowns And Hotel Closures, Will Diversify To Rubber Gloves

by Swarajya Staff - Jan 3, 2022 05:56 PM +05:30 IST
Karex: World's Largest Condom Maker Says Sales Down By 40% Due To Lockdowns And Hotel Closures, Will Diversify To Rubber GlovesKarex
Snapshot
  • Karex, the world's largest condom manufacturer Karex, has said that use of its products declined as much as 40% in the last two years attributing it pandemic induced lockdowns, disruption caused to the hotel industry and suspension of contraception distribution programs by many countries across the world.

Goh Miah Kiat, CEO of the world's largest condom manufacturer Karex, has said that use of its products declined as much as 40% in the last two years attributing it pandemic induced lockdowns, disruption caused to the hotel industry and suspension of contraception distribution programs by many countries across the world.

In an interview to Nikkei, Goh said "[Hotel stays were] disrupted by the pandemic," , adding that the sex industry -- normally a major condom market -- has been far less a factor in the last two years.

In the interview, Goh explained that that in developing and less-developed countries, hotels and motels play important roles in providing secluded spaces for intimacy, given generally crowded homes where privacy is at a premium.

On an earlier occasion, Goh had pointed out that sexual health and medical devices industries was drastically impacted by measures that governments and health authorities around the world implemented during the COVID-19 pandemic, such as lockdowns, quarantines or reorganising health services.

Carex operates three factories in Malaysia. The company's Malaysian operations were disrupted during 2021 by a worsening of the COVID-19 situation in Malaysia that required the government to mandate lockdowns of varying degree.

While Karex supplies condoms to brands such as Durex, it also sells condoms directly to customers through its own brands such as Carex.

The group is expanding its product portfolio in terms of capacity as well as variety to offer products such as medical gloves in the near future. Currently 90% of company's revenues come from condoms. It also manufactures personal lubricant, catheters, and ultrasound probe covers.

Karex reported its first full-year net loss on record in FY 21, attributing it unavoidable operational expenses arising from the lockdown and higher distribution expenses.

While condom maker registered a revenue of RM419.8 million ($100.6 million) in FY 21, an improvement of more than 6% from the previous year, it posted a net loss of RM1.02 million for the financial year ended June 30, 2021 (FY21), compared with a net profit of RM228,000 in FY21.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.