Star Sanitaryware expects export boost

The company racked up a net profit of Bt5.05 million in the third quarter, up sharply from Bt380,000 in the second quarter, on higher export volumes due to the resumption of orders from Europe.

President Somchai Wongaroon said yesterday that exports carry a plumper gross profit margin than local sales.

"The third-quarter performance proved that the European economy is back on track. The fall in fuel costs and the economies of scale from producing new products also support gross profit margins," he said.

"We believe orders from overseas will increase in line with the improvement in the global economy and the recovery of the European economy," he said.

Even though the outlook for the export market is brighter, the company is not neglecting the local market.

After heavy marketing, local consumers now see the Star brand as catering to the middle to high-end consumers

The company will launch four to five collections next year to tap the mid-to-high market to reinforce the Star brand image.

The new collections are expected to receive good feedback from customers as much as the previous collection because the price range is not high, he said.

Star's plant is running at 75 per cent of capacity, so there is room to serve the reviving demand from Europe and the expected launch of collections for the local market next year.

The company targets revenue this year to grow 10-15 per cent from Bt230 million last year, he added.