Target revenue increase of 12%, profit after tax over 2,000 billion VND

PNJ Shareholders' Meeting: Target revenue increase of 12%, profit after tax over 2,000 billion VND

On April 16, PNJ held the 2024 General Meeting of Shareholders to present to shareholders a business plan with revenue of VND 37,147 billion, an increase of 12% compared to 2023. In particular, profit after tax is expected to increase by 6% to VND 2,089 billion.

Profit after tax increased by 6%, dividend payment 20%

These are all record numbers for this enterprise. Meanwhile, according to PNJ's assessment, the world's macro economy in 2024 is expected to continue to face many challenges from global geopolitical tensions and global trade has not yet recovered.

As a result, Vietnam's economy in 2024 will also face many challenges as an economy with a large degree of openness. Vietnam also faces many challenges as an economy with a large degree of openness, consumer retail activities, and general purchasing power may not recover as expected this year.

Previously, at the end of 2023, PNJ achieved VND 33,137 billion in net revenue in 2023, a slight decrease of 2% compared to the previous year. However, net profit reached more than VND 1,971 billion, an increase of 9% and exceeding the plan by 2%. This is also the highest profit in 35 years of operation of PNJ. With the above results, PNJ's Board of Directors submitted to the General Meeting of Shareholders for approval of the 2023 dividend rate of 20%, worth more than VND 669 billion.

In particular, PNJ will pay the first cash dividend of 2023 at 6% (nearly 201 billion VND) on April 12. Thus, PNJ shareholders will still receive the 2023 dividend at the remaining rate of 14%, equivalent to more than 468 billion VND. The expected dividend for 2024 continues to be 20% in cash.

PNJ targets 2024 revenue increase of 12%, after-tax profit of over 2,000 billion VND.

To achieve the above business results, PNJ has combined many important strategies: expanding market share and network; applying digital transformation... PNJ diversifies its product portfolio to meet the increasing needs of consumers.

PNJ strives to reduce cost of goods sold and optimize operating costs, helping the average gross profit margin in 2023 reach 18.3%; Focus on developing the capacity of the staff, enhancing professionalism in operations through training and implementing many meaningful community projects.

In addition, PNJ continues to grow in market share in the branded segment and expand its retail network to 55/63 provinces and cities, with 400 stores nationwide. PNJ's brand value is estimated at 428.43 million USD, up 17% compared to 2022 and up 44% compared to 2020 (Brand Finance announced).

During the period from 2018-2023, PNJ has made strong strategic developments with outstanding acceleration in business results. Total profit after tax reached VND 8,033 billion and market capitalization more than doubled, increasing by about VND 17,000 billion (excluding the private share issuance) during this period.

“PNJ strives to achieve and exceed its offensive goals instead of its defensive goals in the context of the 2023 market facing barriers and pressures. Many shareholders last year were also concerned when PNJ set challenging business targets in a very difficult market context, but with our strong internal strength, we have continuously innovated and attacked to overcome difficulties and rise, keep our promises and bring value to shareholders,” said Mr. Le Tri Thong, Vice Chairman of the Board of Directors and General Director of PNJ.

Issue ESOP shares, pay 20% dividend

At the same time, to attract and retain talent, PNJ's Board of Directors submitted to the General Meeting of Shareholders for approval a plan to issue shares under the employee stock option program (ESOP) in 2024.

In particular, PNJ plans to issue nearly 3.35 million ESOP shares (the number of shares can be adjusted according to the Company's charter capital at the time of issuance but still ensures that the issuance ratio is only 1% of the number of outstanding shares according to the plan approved by the General Meeting of Shareholders). The issuance price is VND 20,000/share. The specific issuance time will be decided by the Board of Directors in 2024.

The subjects purchasing ESOP shares include Board of Directors members, Executive Board members, key leaders, mid-level officers, key employees of PNJ and subsidiaries who have actively contributed to the over-fulfillment of the 2023 business plan. The specific selection criteria, list and number of shares purchased are approved by the Board of Directors of PNJ.

Regarding the transfer regulations, PNJ said that 100% of the shares will be restricted from transfer within 12 months, 70% of the shares will be restricted from transfer within 24 months and 40% of the shares will be restricted from transfer within 36 months from the date of completion of the issuance.

The entire number of additional shares issued by the Company to pay dividends in shares and/or bonus shares from equity/treasury shares that employees receive arising from the number of ESOP shares that are in the restricted transfer period will also be restricted from transfer at the rate and time corresponding to the number of ESOP shares that are restricted from transfer.

It is expected that after completing the issuance of ESOP shares, PNJ's charter capital will increase from VND 3,347 billion to VND 3,381 billion.

Source