Pelikan International is aiming to increase its profit after tax (PAT) margin of 8 to 10% within three years, compared with about 4% last year, said CEO Loo Hooi Keat.
An 8% margin would translate into 80 million euros net profit from a targeted one billion euros sales for the financial year ending Dec 31, 2013.
“The growth will be supported by organic growth, improved volume, better cost structure, merger and acquisition activities as well as contribution from the on-going merger with Herlitz AG,” said Loo after the company AGM.
Loo added that Herlitz, 70%-owned by Pelikan, would start to contribute to the group from the second quarter of this year. He also said Pelikan would continue to look for M&A opportunities and intended to acquire strong brands in the industry. “We are not in talks with anyone now but there are different parties, including from the US and Europe, approaching us,” he said.