sales drop but brands boost panda's profit

"Although the company covered currency risks through natural hedging and forward contracts, it still experienced an exchange loss of Bt69 million. However, the company managed to achieve a Bt71-million net profit," president Prapee Sorakraikitikul said last week.

Pranda's sales during the period reached only Bt1.01 billion after the baht gained 9 per cent against the greenback and the US economy slumped from the sub-prime crisis.

However, its profit margin improved to 35 per cent from only 30 per cent last year.

The group has prepared a strategic plan to tackle all possible future risks. It will expand its domestic business while penetrating more countries.

It will invest with local partners to set up joint ventures in the European Union, China and India to help it distribute all its jewellery brands in those markets and widen its reputation.

Sales from all of the group's brands account for 17 per cent of the group's total sales but Pranda expects the brands to contribute up to 50 per cent within five years.