Karex Berhad Full Year 2024 Earnings: EPS Misses Expectations

Karex Berhad (KLSE:KAREX) Full Year 2024 Results

Key Financial Results

• Revenue: RM507.8m (down 4.6% from FY 2023).
• Net income: RM23.4m (up 124% from FY 2023).
• Profit margin: 4.6% (up from 2.0% in FY 2023). The increase in margin was driven by lower expenses.
• EPS: RM0.022 (up from RM0.01 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Karex Berhad EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 7.1%.

The primary driver behind last 12 months revenue was the Sexual Wellness segment contributing a total revenue of RM463.3m (91% of total revenue). Notably, cost of sales worth RM336.6m amounted to 66% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to RM70.7m (48% of total expenses). Explore how KAREX's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.3% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Personal Products industry in Asia.

Performance of the market in Malaysia.

The company's share price is broadly unchanged from a week ago.

Balance Sheet Analysis

Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We have a graphic representation of Karex Berhad's balance sheet and an in-depth analysis of the company's financial position.

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