Pranda Jewelry Public Company Limited or “PDJ” is a manufacturer, distributor and retailer of fine jewelry with leading position in exporting Thai gemstone jewelry for the world class jewelry brands as well as its own brands into the international market revealed the operating profit in Q4/2022 at Baht 64 million, decreased by 23%, compared with previous year. Due to Pranda Group has selling and administration expense increased which mostly come from repair and maintenance utility which postpone in previous quarter as well as selling and administration expense increased align with sales growth in India that grow continuously throughout entire year and start local production line to supply the growing demand in India market. In this regard, Pranda Group has sales revenue increased by 24% compared to the previous year.
Mr. Chanat Sorakraikitikul, Chairman of Finance & Risk Management Committee of Pranda Jewelry Public Company Limited revealed that Q4/2022 has revenue of Baht 955 million, which decreased by 6%, compared to the same period of previous year. The mainly factor come from sale from production business which account for 72% of total revenue, decreased by 8% compared with same period of previous year due to balance order throughout the year. While revenue in Omni-channel business, which account for 28% of total revenue, decreased by 2% compared with same period of previous year mainly due to Thailand market spending recovery since late 2021 resulted in sales in Q4/2021 higher than Q4/2022.
As a result of overall in 2022, the increase in revenue is mainly due to sale from production business, which account for 75% of total revenue, increased by 25% compared with the previous year as key customer’s economy in Europe and USA grow significantly resulted in achieved sales order. While revenue in Omni-channel business, which account for 25% of total revenue, increased by 22% compared with the previous year mainly due to Thailand market spending recovery. During the year especially on distribution channel in India start local production line to supply the growing demand in India market.
An implementation plan in 2023, the company has set strategy in the production business, which focused on building strategic customer base by cooperating with clients in form of strategic partners through long-term planning with key clients together with more effective production cost control to create trust and long-term positive relationships. In 2023, the company has set the sales target at Baht 2,600 million, and estimated that in Q1/2023 will have the sales revenue at Baht 505 million. The company expected that in 2023 will be keeping on the sales revenue level from the production business similar in 2022. However, the target in THB will highly depend on the exchange rate volatility, as majority of Production business are conducted in USD.
In part of Omni-channel Distribution, which operations of its ownbrands through retail points of sales & online channels such as PRIMA Thailand. In 2023, the company has set the strategy to maintain customer base, focused on customer relationship management or CRM strengthening, expanded the customer base on young generation, and expanded business into online channel efficiently. For Gemondo brand, has developed the website in order to drive the marketing efficiency, also new products development in order to expand to the new customer base continuously. As a result, in 2023 the company has set the sales target for Omni-channel Distribution at Baht 1,235 million, and expected that the sales revenue in Q1/2023 will reach Baht 241 million, which is lower than target by 13% as Vietnam and UK operations still face challenges in the market.