KUALA LUMPUR (Jan 11): Atlan Holdings Bhd’s net profit plunged 90% to RM1.61 million for its third quarter ended Nov 30, 2017 (3QFY18), from RM16.68 million in the previous year, due to foreign exchange loss.

Earnings per share shrank to 0.63 sen per share from 6.58 sen per share last year.

The operator of the 'Zon' duty free outlets said the unfavourable result for the quarter was mainly due to a net loss in foreign exchange amounting to RM7.3 million compared to net gain amounting to RM9.5 million in the previous corresponding quarter, the group said in a filing today.

Revenue grew 2.5% to RM186.07 million from RM181.62 million a year ago.

In a Bursa filing today, the group said that its ‘Zon’ duty free segment recorded a slight increase in revenue in the financial  quarter under review mainly due to an increase in demand for certain products and sales mix.

Revenue in its automotive segment was also higher in the quarter, but the property and hospitality segment recorded lower revenue as a result of lower occupancy rates.

Despite the lower earnings, Atlan declared a third interim single dividend of 10 sen per share, bringing the total dividend to 21 sen so far. The interim dividend is payable on March 15, 2018.

For its cumulative nine-month period (9MFY17), net profit declined 46% to RM22.68 million from RM41.94 million a year ago. Cumulative revenue fell slightly by 2% to RM602.73 million from RM613.02 million a year ago.

In view of the prevailing economic conditions, with the volatile ringgit against the US dollar coupled with the competitive business environment, the industries in which the group operates are expected to remain challenging, it said.

“The group will continue its efforts to strengthen operational efficiencies and cost control measures in order to remain competitive and profitable in the remaining quarter of the financial year ending February 28, 2018,” it said.

Atlan shares closed up two sen or 0.47% to RM4.28, bringing it a market capitalisation of RM1.08 billion.