Phú Nhuận Jewellery JSC (PNJ) has just reported an impressive business performance for the first four months of the year, thanks to a remarkable surge in revenue from their 24K gold sales.

 

The company achieved a net revenue of over VNĐ16 trillion (US$630 million), marking outstanding growth of 33 per cent year-on-year. 

 

Its profit after tax rose 6.5 per cent from the record-high level of the same period in 2023 to VNĐ915 billion.

 

With these remarkable results, PNJ has already accomplished 43.2 per cent of its annual net revenue target and 43.8 per cent of its profit target within just four months.

 

According to the company, its retail jewellery revenue for the first four months of this year experienced a gain of 12.4 per cent over last year. 

 

This significant growth can be attributed primarily to the successful launch of numerous new collections that suit customer preferences, the effective implementation of marketing campaigns and the execution of efficient sales programmes.

 

As a result, PNJ has successfully attracted a multitude of new customers and strengthened customer retention, said the company’s representative.

 

Wholesale jewellery revenue has experienced a notable 9.3 per cent increase compared to the previous year. Particularly impressive is the nearly 80 per cent surge in revenue from 24K gold at PNJ driven by the dynamic gold market.

 

However, the average gross profit margin for the first four months has slightly declined to 17 per cent, down from the 19.1 per cent recorded during the same period in 2023. 

 

The company attributes this to changes in its retail sales channel and revenue structure as well as fluctuations in raw material prices and other input factors.

 

At the recent Annual General Meeting held in April, Cao Thị Ngọc Dung, Chairwoman of the Board of Directors at PNJ, explained how the company achieved higher revenue with lower profits. She said that domestic gold prices have stimulated consumer demand for gold bars, particularly 24K gold, resulting in a surge in the company's revenue.

 

However, the lower profit margins associated with gold bars, including 24K gold, affected the overall decline in profitability. 

 

Additionally, in 2023, the company had already implemented significant cost-cutting measures, leaving limited room for further reductions.

 

Meanwhile the upward trend in gold prices has posed challenges to ensuring an adequate supply of raw materials for production.

 

The chairwoman also expressed concerns about surging gold prices, particularly in managing inventory. 

 

On Friday, PNJ listed SJC gold at VNĐ87.5 million for sellers and VNĐ89.4 million for buyers. 

 

According to Dung, the cost of goods for PNJ fluctuates with the price of raw materials, which accounts for approximately 50 per cent of the total cost. 

 

The company adjusts prices when there is a fluctuation of more than 5 per cent. This means that it must closely manage every detail to ensure effective business operations.

 

As of the end of April 2023, PNJ had a total of 403 stores nationwide, including 394 PNJ stores, five Style by PNJ retail outlets, three CAO Fine Jewellery business locations and one wholesale trading centre.

 

On the stock market, PNJ shares were traded at VNĐ95,100 per share on Friday, down nearly 3.1 per cent from the previous session. — VNS