Jewelry major PNJ aims for $81 mln after-tax profit in 2024

Vietnam’s Phu Nhuan Jewelry JSC has targeted VND2.09 trillion ($80.65 million) in after-tax profit this year, up 6% from 2023 and a new record for the firm, according to its leadership.

The company’s revenue is expected to reach VND37.15 trillion ($1.5 billion), up 12% year-on-year.

Phu Nhuan Jewelry, listed on the Ho Chi Minh Stock Exchange as PNJ, said it will continue to implement five orientations, including steady growth, capacity development, resource enrichment, future preparation and development of new businesses.

The company will focus on maximizing revenue at stores, refreshing customer experiences, and optimizing operating costs; investing in technology and digital transformation, piloting modern customer access models; and promoting ESG (environmental, social and governance).

Stores on the rise

In 2023, amid economic difficulties and falling purchasing power, PNJ recorded a 2.2% decrease in revenue to VND33.14 trillion ($1.34 billion), failing to complete the yearly plan.

However, thanks to shifting the structure of jewelry lines and optimizing operations and production, its profit margins improved, leading to an after-tax profit growth of nearly 9% to VND1.97 trillion ($79.45 million), surpassing the yearly target and setting a new record.

Last year, the company opened 48 more stores, bringing the total number to 400 by the end of 2023. In the first two months of this year, two others were inaugurated.

In addition, PNJ developed different store models for new brands in the ecosystem to fully tap customer groups. It transformed three independent PNJ Watch stores and two PNJ Art stores into SiS stores.

Its leadership realized that the Vietnamese jewelry market still has great growth potential and ample room for development in certain areas.

According to the World Gold Council 2023 report, on average a Vietnamese person buys 0.15 grams of gold jewelry per year, much lower than some other countries such as the UAE (4.2 grams), Singapore (1.2 grams), China (0.47 grams), India (0.39 grams) and Malaysia (0.33 grams).

With excellent business results last year, the board of directors presented to shareholders a plan to pay cash dividends at a rate of 20%, equivalent to VND669 billion ($26.97 million). The company has completed the first payment at a rate of 6%.

In addition, PNJ will issue 3.3 million shares, or 1% of the floating shares, to employees with outstanding contributions to the 2023 business performance, at a price of VND20,000 ($0.8) per share.

In the stock market, PNJ closed the Wednesday session at VND97,500 ($3.9) per share.