Jewelry major PNJ records $36 mln net profit in first four months

Vietnam’s Phu Nhuan Jewelry JSC (PNJ) posted VND915 billion ($35.9 million) in after-tax profit in the first four months of this year, up 6.5% year-on-year and equivalent to 44% of its year plan.

The company’s four-month revenue reached VND16 trillion ($628.4 million), soaring 33.1% year-on-year and equal to 43% of the target set for this year.

The firm earned more than VND130 billion ($5.1 million) per day from selling gold and silver jewelry, compared to the average of VND90 billion in the same period in 2022 and 2023.

PNJ's revenue has increased sharply in the context of skyrocketing gold prices since the beginning of the year, breaking previous records. As of May 21, the price of SJC-branded gold bullion had reached VND91 million ($3,574) per tael, an increase of about 20% from the outset of the year.

Its business activities grew steadily across all channels. Of which, retail expanded 12.4%, wholesale 9.3%, and gold bars 80%. Revenue from the jewelry segment accounted for 56.8% of the total, while the respective figures for retail and wholesale were 49.2% and 7.6%.

Explaining revenue growth greater than profit expansion, at the 2024 AGM held in April, chairwoman Cao Thi Ngoc Dung said the company had cut a lot of costs in 2023, but would not be able to this year. Rising gold prices have seen increased purchases of gold bars and 24K gold, resulting in surging sales but falling profit margins.

PNJ, listed on the Ho Chi Minh Stock Exchange (HoSE) as PNJ, is targeting VND37.15 trillion ($1.46 billion) in revenue and VND2.09 trillion ($82.33 million) in after-tax profit this year, up 12% and 6% from 2023.

By the end of April, the company had a network of 403 stores in 57 out of 63 provinces and cities nationwide. In April, it opened seven new stores and closed four.

On the stock market, PNJ closed Tuesday at VND98,000 ($3.85) per share.