Those uncertainties, including the baht's fluctuation, caused the Saha Group to miss last year's overall sales target by 3 per cent, chairman Boonsithi Chokwatana said yesterday.

The group, which includes more than 300 subsidiaries, achieved total sales of Bt130 billion last year, up only 7 per cent from 2005 and 3 per cent short of the 10-per-cent target set at the beginning of the year.

"Many negative factors affected our sales in the second half of last year," said Boonsithi.

He said the group enjoyed sales growth of 15 per cent in the first six months, while second-half sales growth had been reduced to less than 10 per cent.

"This year, the local economic situation is growing worse, with many uncontrolled factors like the strong appreciation of the baht. They are severely hurting the group's export business," said Boonsithi.

He said some of the group's products available in neighbouring markets like Laos were facing stiff competition from Chinese and Vietnamese products, which were slashing their price to be more competitive.

"There are many other uncontrolled factors this year, including the current political situation, which will be a factor in our business considerations and month-by-month planning. Anyway, as part of the private sector, we would like the government to have a clear policy for the country," said Boonsithi. He added that the group was quite confident the economic situation would improve in the next couple of months. The group has also set itself an optimistic target of 12-per-cent sales growth for the year.

Slimming-centre operator the Body Shape Corp Group yesterday lowered its sales target for the year, from 25 per cent to 15 per cent.

The company also delayed expansion plans for new branches. The firm earlier planned to open five new centres this year, which would cost about Bt15 million each. The Bt100-million marketing budget for this year has also been suspended.

Managing Director Pranee Suebwonglee said the New Year's Eve blasts in Bangkok had had a big impact on the political and economic situation in Thailand. As a result, the company needs to revise its sales target, which was set since late last year, to cope with the situation.

She said the company currently had 25 Body Shape slimming centres and 50 Kristy France branches. It intends to wait until the local political and economic situation is more clear, or at least by the end of this quarter, to review its investment and marketing budget.

Pranee said the political and economic uncertainties had also slowed down its plan to promote its new business, Body Shape for Men, which was launched last year.

In addition to the domestic market, the company will start exporting Body Shape products, starting with Indonesia next month.

Nitida Asawanipont

The Nation