PETALING JAYA: Karex Bhd is looking at rebranding and relaunching custom fit condoms, which will be “first-of-its-kind”, via e-commerce in August this year.

Karex CEO Goh Miah Kiat said Karex acquired the assets of US custom fit condom maker TheyFit LLC earlier this year and will be looking at rebranding the custom fit condoms under the ONE brand.

TheyFit condoms are the only custom fit condoms in the world today. It has a patented measurement kit, which allows consumers to customise their size of condoms. TheyFit raked in about RM1 million in revenue last year.

“We’re optimistic (about the profit of custom fit condoms). It’s a product that doesn’t go through distributors and retailers. Because it’s online, the cost of making is fairly low and the cost of selling it online is about US$1 (RM3.90) a piece. The profit margin is tremendous but the only thing is how to get volume out of this. An idea like this has never been leveraged on an established brand,” he told reporters after its EGM here yesterday.

Goh said ONE is the fourth most popular condom brand in the US and the company can build on its platform of social media users. The custom fit condoms will be launched by Karex’s 55%-owned Global Protection Corp in the US.

He added that condom use has been growing and that there is always demand for smaller size condoms or custom fit condoms as today’s younger generation is becoming sexually active at an early age.

“We’re looking at an industry that is growing 9% annually and double digit in the Africa region,” said Goh.

Karex is also hoping for more than one acquisition this year and is looking at distribution channel and brands to acquire within the condom business. The company has RM180 million cash.

“We’ve started to move from a manufacturer into the brand business and distribution. We still think there is a lot of value that can be generated from the condom industry and we don’t have to look at other businesses,” added Goh.

Meanwhile, Goh said the weakening ringgit poses a short term impact but is not too concerned, as the world’s largest condom manufacturer has hedging policies in placed.

“We will continue to monitor the situation. If the ringgit continues to slide, we have to revise prices with our clients.”

Goh said price revision is usually done once a year with clients and in extraordinary situations like currency movements, as any 5% or 10% swing is considered a big change in the market. He said latex price at about RM4-RM5 per kg would be a comfortable level for the company and that latex price will be more stable compared with currency fluctuations.

Karex has a production capacity of 5 billion pieces. Goh said it hopes to produce 6 billion pieces in early 2017 and 7 billion pieces in 2018.

Earlier at the EGM, shareholders approved its proposed bonus issue of 334.13 million new shares of 25 sen each on the basis of one bonus share for every two existing shares.