1 June 2011
Thailand’s Pranda Jewellery Plc reported a 6 percent sales revenue drop to $2 million and a 43 percent fall in operating profit for the quarter ended March 31.
In a report to the Stock Exchange of Thailand (SET), company officials said the economic slowdown in the US and Europe, and volatile raw material prices "have led to an impact in terms of customer orders."
In addition, about 83 percent of the company’s revenue is derived from exports, making it sensitive to currency fluctuations. As the Thai baht strengthens against major currencies, exports slow.
Earlier this year, the company forecast a full year 2011 sales increase of 8 percent, despite the economic conditions in their main export markets, the US and Europe.
"The peak season for our sales normally starts in the second half,” Sunanta Tiasuwan, chair of the group finance committee, said in a Bangkok Post report.
In 2011, the company expects to increase sales points in China to 15 from 11. In India, plans are to double sales points from more than 2,000 currently across the country, according to the report.
