Jewelry major PNJ's 24K gold bar revenue skyrockets

Revenue from 24K gold bars at Vietnam’s Phu Nhuan Jewelry JSC (PNJ) in the first five months of 2024 soared more than 90% year-on-year to VND8.48 trillion ($333.14 million), accounting for 43.4% of its total revenue.

PNJ reported its five-month net revenue at VND19.55 trillion ($768 million), a year-on-year increase of 37% and equivalent to 53% of its yearly target.

Its retail channel revenue reached VND9.36 trillion ($367.7 million), up 12.8% compared to the same period last year and accounting for 48% of its total revenue. The wholesale segment also grew by 16.4% to VND1.54 trillion ($60.5 million).

However, the average gross profit margin in the period reached 16.5%, down from 19% in the same period in 2023, due to changes in the revenue structure of each business segment.

A PNJ representative explained that although 24K gold bar revenue has increased sharply, the profit margin was very low, meaning PNJ did not consider it a major business segment.

The retail segment recorded double-digit revenue growth thanks to flexible business strategies and efforts to launch new collections that suit customer tastes, the representative said.

At the same time, PNJ has successfully implemented effective marketing campaigns and sales programs, drawing new customers and increasing the return rate of existing customers, he added.

As a result, PNJ’s after-tax profit reached VND1.05 trillion ($41.25 million), an increase of 8.5% over the same period last year and 50.3% of the year target.

As of the end of May 2024, PNJ owned 405 stores nationwide, five more than at the end of last year.

In its business orientation, the company said it will maximize stores’ revenue and open new stores in more remote areas, the representative said, adding the firm also plans to develop different store models for new brands in its ecosystem to reach different customer groups.

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.

On the stock market, PNJ closed Friday at VND97,700 ($3.84) per share.