Phu Nhuan Jewellery JSC, Vietnam's largest jewelry retailer, reported an after-tax profit of VND1.17 trillion ($49.2 million) in the first seven months of 2023, up 0.3% year-on-year.
The company's (PNJ) net revenue reached VND18.82 trillion ($790.3 million) during the period, down 9.2% over the same period last year, according to its report.
After the first seven months, PNJ had fullfilled 60.4% of its year profit target.
PNJ said that retail jewelry revenue in the seven-month period decreased by 9.9% compared to the same period last year due to challenging market factors.
However, thanks to the introduction of effective business strategies and market approaches, PNJ managed to limit falling sales compared to the decline of the general market, it added.
The firm's wholesale jewelry revenue in the first seven months of the year dropped by 31.3% year-on-year due to a decline in domestic purchasing power and falling corporate orders. However, the wholesale channel continued to grow in terms of new customers. 24K gold sales in the first seven months of 2023 increased by 1.2%.
The average gross profit margin during Jan-July reached 18.7%, higher than the 17.4% posted in the same period in 2022 and within the profit margin outlined in its business plan.
In July, the company achieved net revenue of VND2.36 trillion ($99.3 million), down 5.8 year-on-year. Its after-tax profit reached VND85 billion ($3.5 million), up 6.7%.
As of the end of July 2023, PNJ had 384 independent stores, including 371 PNJ Gold stores, three CH CAO Fine Jewelery stores, five PNJ Style stores, two PNJ Watch stores, and three PNJ Art stores.