Modernform Group Plc (MODERN), the SET-listed furniture manufacturer, expects revenue growth of 15% this year after missing last year's target due to product delivery delays stemming from developers not finishing construction on schedule.
Chief executive Thaksa Busayapoka said the company expects last year's revenue to come in at 3.2 billion baht, representing less than 10% growth and falling short of the expected 3.5 billion.
Furniture could not be delivered to projects that were behind schedule for completion, he said.
"Condo projects currently are facing construction problems, not sales problems," said Mr Thaksa.
"Many projects cannot be completed on time due to the labour shortage."
With 300 million baht worth of pent-up orders carried over from last year, Modernform's sales backlog rose to 1.8 to 2 billion baht, 70% of which will be booked this year.
With the booming economy, the company expects the overall furniture market to grow by 15%, higher than the usual 10%, to 40-50 billion baht.
But thanks to the growing economy, the office furniture segment, of which the company commands a 30% share, is valued at 4-5 billion baht or 10% of the overall furniture market.
It will boost spending on marketing, advertising and campaigns by about 30% this year, to 100 million baht.
Some 80% of sales are from projects and the rest from retail sales.
Of the retail sales, 25-30% are from its subsidiaries including healthcare furniture and design services.
Mr Thaksa said the group's Modernform Healthcare subsidiary enjoyed strong sales growth of 40-50% last year to 200-300 million baht thanks to an expansion of government hospitals.
The group will introduce medical equipment for cancer treatment this year.
Yesterday, it debuted an office chair that comes with a built-in mobile phone charger and USB port.
Shares of MODERN closed yesterday on the SET at 8.25 baht, up 5 satang, in light trade worth 168,000 baht.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter