SVI eyes return to growth
SVI expects its sales of electronic components will return to the normal growth rate of 25-30 per cent next year, as it has already recovered from the blow from the flood last year.
Chief executive officer Pongsal Lothongkam said yesterday that the growth forecast did not yet include its plan to take over businesses in Europe. Those deals could double its business, as it would be able to acquire new customers and markets.
No moves will be made this year, however, as the company is waiting for Bt300 million to Bt400 million in flood compensation from insurance companies. It should receive the funds this quarter or next month. It will use the funds for loan repayment before starting to think about the takeover plan.
SVI expects to realise a net profit this year versus the loss last year. Sales should hit US$280 million (Bt8.8 billion) this year, almost the same as last year. First-half sales were $120 million.
The company will ramp up production to 100 per cent of capacity in the first quarter of next year from 80 per cent at present, Pongsal said.
A budget of Bt300 million has been set aside for next year to purchase machinery, down from Bt550 million this year. It will spend Bt160 million in the second half of this year on machinery procurement and plant expansion.
