Pelikan CEO Loo Hooi Keat
Swiss printer consumables supplier experiences decrease in sales in Europe for first half of 2012.OPI reports that a report released by Pelikan’s Swiss holding company indicated a 12 percent decline in sales for the company during the first six months of 2012, with figures falling to SFr109.4 million ($117 million/€90.4 million).
Pelikan’s largest decline in sales was suffered in Germany, with a fall of almost 20 percent to SFr44.8 million ($48 million/€37 million), followed by a 15 percent decline in Italy, the company’s next largest single market, to SFr7.1 million ($7.6 million/€6 million). European sales overall declined to SFr71.7 million ($76.5 million/€59 million) representing an 18.5 percent drop.
However, sales in Latin America were reported to have increased by just over 10 percent to SFr30.4 million ($32.4 million/€25 million).
Pelikan reportedly partly blamed the sales decline on its decision to stop distributing “presentation products and to streamline its printer consumables business”, and expects “the lower sales trends in Europe to continue”. The company is therefore reportedly planning to focus on developing other markets, including Latin America.
Pelikan’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the first half of the year were reported to have fallen 30 percent to SFr8.3 million ($8.8 million/€6.8 million), with operating profit dropping from SFr5.9 million ($6.3 million/€4.8 million) last year to SFr4 million ($4.3 million/€3.3 million) due to restructuring charges against Pelikan after it laid off nine percent of its workforce earlier this year.
The Recycler reported in May that Pelikan anticipated a “challenging quarter ahead”, particularly in Europe, and that it expected “weak business development” in printer supplies for 2012.
However, in June it was reported that Pelikan anticipates positive earnings for 2013 following its ongoing restructuring and cost saving efforts and improved economic conditions.