KUALA LUMPUR (Nov 22): Pelikan International Corp Bhd’s net profit leaped 189% to RM4.89 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM1.69 million in the previous corresponding quarter, despite lower revenue.

The stationery maker attributed the improved earnings to measures taken on cost control and ceased loss-making subsidiaries

The company’s earnings per share grew to 0.83 sen per share in 3QFY19 to 0.31 sen per share a year ago.

Revenue, however, fell 5.52% to RM303.31 million versus RM321.02 million for 3QFY18 due to the weaker euro against ringgit and lower sales in the Colombia market as well as in Spain after it ceased operations in Spain, the company said in a filing with Bursa Malaysia.

For its nine-month period, net profit grew 20.42% to RM25.11 million from RM20.85 million. Revenue declined 7.08% to RM837.43 million from RM901.19 million.

On prospects, it said the uncertainty on the global front remains the key challenge for the group despite having clear target focus on having a good product mix, brand building, channel management activities and continuous cost measures.

Nevertheless, Pelikan is stepping up efforts to develop new innovative products and concentrate its efforts on untapped markets such as China and the ASEAN region which can compensate for short-term reductions and provide long-term sustained growth.

“The implementation of new stationery assortments for the China market has started and more activities have been planned to penetrate the brand and products in this market,” it added.

Pelikan’s shares dropped 1.5 sen or 4.55% to 31.5 sen, bringing it a market capitalisation of RM190.01 million.