PNJ recorded 1,218 billion VND in profit after tax

Phu Nhuan Jewelry Joint Stock Company (PNJ) announced its business results for the first 7 months of 2024 with net revenue reaching VND 24,621 billion and profit after tax reaching VND 1,218 billion.

According to the recently released report, business results for the first 7 months of 2024 were positive with both revenue and profit growing.

Specifically, after 7 months, net revenue and profit after tax reached VND 24,621 billion (up 30.8% over the same period) and VND 1,218 billion (up 4% over the same period), respectively. This means that PNJ has completed 66.3% of the net revenue plan for the whole year of 2024.

PNJ's business activities have grown steadily in all channels. Accumulated retail jewelry revenue in the first 7 months of 2024 increased by 14.6% over the same period, thanks to the diversification of new collections, in line with market trends and meeting the increasing needs of customers. Creative marketing campaigns and attractive promotions have contributed to boosting sales and increasing customer love for the brand.

PNJ recorded more than 24,000 billion VND in revenue after 7 months.

Wholesale jewelry revenue in the first 7 months of 2024 increased by 24.7% year-on-year thanks to the expansion of the customer network. PNJ's average gross profit margin decreased slightly to 16.4% (down from 18.7% in the same period of 2023) due to changes in the revenue structure of each business segment. In addition to stable profit margins of retail and wholesale channels, PNJ continues to implement measures to optimize resources and improve operational capacity to maintain a positive average gross profit margin.

In fact, the increase in gold prices also changes consumer behavior. The economic context is not stable, bank interest rates are low, other investment channels such as stocks are still shaky, real estate has not thawed. Therefore, gold - which is highly safe, is considered a potential and attractive channel, when the price skyrockets in a short time. Currently, people prefer to buy 24K gold for defense and investment purposes. This demand is much higher than in previous years when customers came to PNJ mainly to buy jewelry and choose products that focus on fashion.

Meanwhile, the profit margin of 24K gold products is very low, less than 1%. This is also not PNJ's main business segment. Vietnam's economy in 2024 faces many challenges as an economy with a large openness. In consumer retail, general purchasing power may not recover as expected.

In this challenging context, with the spirit of "Upgrading, regenerating, breaking through to reach new heights", PNJ said it is determined to accelerate, develop strategic capacity, new investment strategies, perfect the apparatus and mechanisms, to maintain its position as the No. 1 jewelry retail company in the Vietnamese market, reaching out to the world in line with the 2023 - 2027 orientation of the Board of Directors, ready to respond to potential challenges to reach new heights for PNJ in 2024 and the following years.

In the medium and long term, the gold jewelry retail market is considered to have great potential, due to the combination of many factors, such as consumer stimulus policies, online shopping habits, people's needs, and the rapid transformation of businesses in the industry. In Vietnam, PNJ has continuously grown, capturing market share and expanding its retail network nationwide.

As of the end of July 2024, PNJ has 409 stores nationwide. Including 400 PNJ stores , 5 Style by PNJ stores , 3 CAO Fine Jewellery stores and 1 wholesale center.

Source: https://baodautu.vn/pnj-ghi-nhan-1218-ty-dong-loi-nhuan-sau-thue-d223373.html