GOLD
Forex blues hit Prima
Rungnapa Ngowngam-ratana presents the new Prima Gold collection yesterday as part of the company’s plan to boost sales this year.
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Jeweller may raise export prices after missing 2006 forecast
Prima Gold International, an affiliate of Pranda Jewellery, is considering increasing export prices 5-10 per cent in the second half of the year, due to the baht's appreciation. Managing director Rungnapa Ngowngamratana said net profit from exports fell Bt10 million short of the forecast last year after the baht strengthened from 40 to the greenback to 38. The strengthening trend has continued, and the currency is now trading at nearly 34.50 to the US dollar. Last year, company revenues rose 10 per cent year on year to Bt700 million. About 25 per cent of its total sales are derived from exports. The Middle East accounts for up to half of total exports, South and Southeast Asia account for 25 per cent and Japan and the US the rest. "Our sales growth last year was only 10 per cent from 2005, which saw 20-per-cent growth from 2004," Rungnapa said. She pointed to several negative factors, including political uncertainty, slowing growth and the unpredictable price of gold, which rose 30 per cent last year. The gold and jewellery business faced a rough start to the year, due to the New Year's Eve Bangkok bombs. Prima Gold International's sales fell as much as 10 per cent year on year in the period. Rungnapa said there had been a rebound in demand for jewellery and ornaments this month and that the company expected to meet its sales-growth forecast of 15 per cent, or Bt800 million, this year. The company will spend Bt20 million on marketing this year, she said. It will spend up to Bt65 million to open 13 new branches this year: five Century Gold stores, five Prima Diamond stores and three Prima Gold branches. Prima Gold International also sells the Prima Art brand of designer gold jewellery and ornaments. It has one Prima Art outlet. There are 41 Prima Gold branches and 21 sales counters, 21 Prima Diamond branches and 10 Century Gold branches. More than half of total sales are derived from Prima Gold, and Prima Diamond accounts for about 20 per cent.
Somluck Srimalee The Nation
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