Picnic's new MD faces tough challenge
Recruiting a new managing director became a top priority at indebted Picnic Corp after Prasit Phetkhat resigned as of Wednesday.
The new MD should have experience in finance, as solving Picnic's financial crisis is an urgent issue, acting managing director Pongthep Lapvisuthisin said yesterday. Picnic is saddled with Bt2.5 billion in debts, of which about Bt2 billion are doubtful. Pongthep said Prasit had resigned as managing director to oversee Picnic's operations in Cambodia, Vietnam and Laos, while Nattachai Aramrasmewanich, who preceded Prasit, is now head of Picnic's business in Bangladesh and Singapore. Pongthep said he would focus on cutting the company's expenses - now Bt300 million - by 20 per cent per quarter, besides solving its debt problem. He said his firm's net loss would keep declining because each project is supervised by creditors. "From now on, Picnic's executives will change their management style by being more conservative and turning the company into a profit-maker again. I would like to operate my firm transparently with concern for shareholders' returns," he said. "I won't lay down a business plan that is long term but I will map it out on a yearly basis because both local and international situations are uncertain. This can be seen from the collapse of our recent attempt at recapitalisation." Picnic's third-quarter net loss improved from Bt1.42 billion last year to Bt252.1 million. Its nine-month net loss of Bt1.123 billion was down from the Bt1.32-billion net loss experienced in the same period last year. Pongthep ascribed the improved results to the change in the company's payment method - mainly to cash - and to the shortening of accounts receivable to three to five days. The company can now sell 60,000 tonnes of liquefied petroleum gas per month, so it will raise production to at least 70,000 tonnes per month next year. "My vision is to concentrate on management systems to standardise the company, and ensure overseas business expansion is aligned with our investment. We have to balance our revenues and expenses. We will normalise our financial structure to build up the confidence of shareholders, trade partners and customers," he said. Siriporn Chanjindamanee The Nation
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