PETALING JAYA: LKL International Bhd reported a 26.3% drop in net profit to RM893,000 for the third quarter ended January 31, 2018 against RM1.21 million in the previous corresponding period, mainly due to increased operating costs associated with its new subsidiary.

However, its revenue rose 39.6% from RM7.34 million to RM10.25 million, driven by sales growth in the domestic and export markets.

For the first nine months of the year, LKL’s net profit plunged 90.3% from RM4.27 million to RM412,000, while revenue declined 20% from RM27.8 million to RM22.24 million.

The group said in a statement that it is actively seeking to distribute new medical peripherals, accessories and devices to broaden its existing product offerings to better meet customer needs.

“Of note, the group is eyeing distribution of higher value products to improve its product mix going forward.”

It is also constantly looking for opportunities to drive efficiency in manufacturing operations and may take measures that include business process reengineering and workforce training programmes to enhance the available resources.

LKL expects its performance to be challenging despite the improvements in local and overseas orders arising from the increase in capital expenditure by various clients to meet their expansion requirements.

Its share price closed down half a sen or 2.8% to 17.5 today on some 128,000 shares done.