The SET-listed Siam Global House, a retailer of building materials and home improvement items, expects 2014 sales to grow by at least 20% — a modest projection compared with past years.
Siam Global's 2013 sales rose by 33% to 14.34 billion baht. Since listing on the exchange, the company has grown consistently by an average of 30% a year.
"Usually the first quarter of the year is when sales of construction materials jump, but it's not the case this year," said Siam Global chief executive Witoon Suriyawanakul.
He said rice growers, a large buyer group, have liquidity problems this year because the government has failed to pay some farmers under the rice pledging scheme.
Though Siam Global's sales have slowed, overall construction materials are still in demand but at a slower pace.
Mr Witoon said the situation would most likely return to normal by early next year.
Siam Global's net profit rose to 885 million baht last year from 609 million baht in 2012.
This year's forecast calls for net profit to remain at the same level.
"Net profit last year rose because our interest payments have been reduced, as we have used the proceeds received from SCG to pay off our long-term loans," said Mr Witoon.
In 2012, SCG Distribution, a wholly owned subsidiary of Siam Cement Group, bought a 33.4% stake in Siam Global.
The deal made SCG the second-largest shareholder of Siam Global after the Suriyawanakul family.
Mr Witoon said Siam Global has benefited from the partnership with SCG and its vast logistics network.
The company plans to open 12 new stores this year, with two already up and running.
Most sales are made in the provinces, but Siam Global hopes to open two new stores and a distribution centre in Bangkok during the fourth quarter.
Management's goal is to have 80 stores overall within the next five years.
Siam Global recently issued three-year debt worth 3 billion baht at 3.85% interest to raise funds for the expansion.
Shares of GLOBAL closed yesterday on the Stock Exchange of Thailand at 16.90 baht, up 80 satang, in trade worth 292 million baht.