Bloomberg — The world’s largest producer of condoms said it expects the demand for its products to increase as the widening vaccine coverage prompts governments to ease social-distancing rules.
“As vaccination rates ramp up around the world, more economies continue to relax restrictions and societies begin to adapt to post-pandemic life,” Malaysia’s Karex Bhd. said in a note accompanying its earnings on Monday.
Karex, which makes one of out of every five condoms worldwide, reported a loss of 2.8 million ringgit ($670,000) in the December quarter, versus 2.8 million ringgit profit a year earlier, because of higher costs of raw materials and Covid-induced disruptions in supply chains. Revenue declined about 11%, the maker of Durex condoms said.
“The exceptional measures that governments and health authorities around the world implemented during the pandemic drastically impacted the sexual health and medical devices industries,” the company said.
The use of company’s products slumped as much as 40% in the last two years, Nikkei Asia reported last month, citing Chief Executive Officer Goh Miah Kiat. The closure of hotels and non-essential clinics such as sexual wellness centers during the pandemic, along with various governments suspending condom handout programs, contributed to the drop in Karex’s condoms sales, according to the report.