PNJ expects double-digit revenue drop, says many gold industry businesses are facing difficulties and closing down

trang sức - Ảnh 1. — Customers shop for jewelry at PNJ store - Photo: PNJ

Phu Nhuan Jewelry Joint Stock Company (PNJ) has just announced documents to be presented to shareholders at the 2025 Annual General Meeting of Shareholders, scheduled to take place on April 26.

2025 is the first year in the 2021-2025 period that this enterprise plans negative growth for both revenue and profit.

Bonus 50 billion if profit increases 7.8%

PNJ's Board of Directors presented shareholders with a consolidated revenue plan this year of about VND 31,600 billion, down 17.3% compared to the 2024 results. Profit after tax is expected to decrease by 7.3%.

From 2021 to 2024, this enterprise has set a target of positive growth, with the highest revenue plan reaching over 32% in 2022 and the lowest being 5% in 2023.

In addition, according to the 2025 profit distribution plan, the board of directors and key leaders of PNJ will receive a bonus of VND 35 billion if they lead the company to complete or exceed the after-tax profit target of VND 1,959 billion this year.

In case net profit increases by 7.8% to VND2,112 billion, the bonus will increase to VND50 billion.

According to an analysis report by Saigon - Hanoi Securities Joint Stock Company (SHS Research), PNJ's net revenue will grow steadily during the period 2009 - 2024.

The compound annual growth rate (CAGR) over the past five years was over 21%, while the CAGR over the past 10 years was 15.2%.

"Revenue growth faster than profit shows pressure on profit margins. Gross profit margin maintained a flat trend around 18%, due to reasons such as rising raw gold prices, scarce supply and fierce competition," according to SHS Research.

In a meeting with analysts in February 2025, PNJ revealed that it is expanding its business into non-jewelry products. The company has signed contracts with related parties and will announce them in the second quarter of this year.

Industry-wide challenges

PNJ's Board of Directors assessed that last year, the jewelry industry faced unprecedented difficulties from a "double storm" coming from both supply and demand.

Specifically, raw materials are scarce due to rising gold prices while purchasing power has not recovered and the growth of the luxury retail industry has declined. Many gold businesses have closed, operated at a standstill, and changed industries.

PNJ is currently the only listed jewelry company in Vietnam, with more than 1,000 goldsmiths, two factories and a production capacity of about four million products/year.

According to SHS Research, the Vietnamese jewelry retail market has tens of thousands of establishments, but only about 10 famous brands. DOJI and SJC are competitors of PNJ. Of which, DOJI leads the market in revenue but has "thin" profits, while PNJ has the second highest revenue but leads in profitability.

In 2024, PNJ's net revenue will reach more than VND 37,800 billion and net profit will be over VND 2,110 billion. The decline in gross profit margin last year (to only 17.6%) came from changes in the revenue structure of the jewelry segment and the impact of the raw material market.

In the revenue structure, the retail segment (jewelry and 24k gold) contributes nearly 90% of PNJ's total revenue.

Organizationally, by the end of 2024, this enterprise will have nearly 9,000 employees, an increase of nearly 17% compared to the beginning of the year.

HONG PHUC

Source: https://tuoitre.vn/pnj-du-tinh-doanh-thu-giam-hai-con-so-noi-nhieu-doanh-nghiep-nganh-vang-kho-khan-dong-cua-20250405231225207.htm