Pranda Jewellery Plc says it is sticking to its 20% revenue growth target this year even though sales in the first quarter contracted as terror attacks in Europe hit demand.
Chief executive Pranee Khunprasert said Pranda posted lacklustre results in the first quarter because of two bombing incidents in Europe, a major market for the SET-listed jewellery manufacturer and exporter.
"These incidents affected our customers' confidence significantly," said Mrs Pranee.
She said Pranda's customers in the US also held back on orders, reflecting weaker demand.
Pranda posted revenue of 603 million baht in the first quarter, down 11% year-on-year. As a result, it had a net loss of 143 million baht.
In 2015, Pranda posted revenue of 2.9 billion baht, with a net loss of 56 million baht.
Late last year, the company started expanding its customer base in its two major markets -- the US and Europe -- with the expectation of generating more revenue, said Mrs Pranee.
She said the company had approached a numbers of customers, mostly global jewellery companies, which place large orders.
"These customers will help drive the company's revenue to reach our target of 20% growth, which will be the first rise in sales in three years," said Mrs Pranee.
Revenue from these customers is expected to be realised in the second quarter, with substantial rises expected in the third and fourth quarters -- the high season for the business.
Executive director and chairman of the finance and risk management committee Chanat Sorakraikitikul said the company will also expand its retail business under the brand "Prima Gold" and "Prima Diamond" in Asean and the Middle East.
Pranda has 160 shops under its own brands in Thailand, Vietnam, Indonesia, Malaysia, the Philippines, the United Arab Emirates and Oman.
"Despite the poor performance of our wholesale business over the past few years, our retail business keeps growing," said Mr Chanat. The company plans to increasing the percentage of its products for retail to 50%, up from 30%.
PRANDA shares closed on the SET yesterday at four baht, up two satang, in trade worth 241,000 baht.