According to the January 2024 report from Phu Nhuan Jewelry Joint Stock Company (PNJ), the company’s net revenue reached VND 3,829 billion, a decrease of over 7% compared to the same period last year. Consequently, the post-tax profit decreased nearly 19% to VND 245 billion.
PNJ stated that consumer shopping behavior in Vietnam in January and February depends on the lunar calendar cycle, with major holidays such as Tet Nguyen Dan and the God of Wealth holiday. In the context of slow purchasing power recovery and the fact that Tet Nguyen Dan and the God of Wealth holiday fell in February this year, PNJ recorded a decrease in both net revenue and profit in the first month of 2024.
In terms of business activities by channel, retail jewelry revenue in January decreased by 6% compared to the same period, amounting to over VND 2,000 billion, due to the late arrival of Tet Nguyen Dan and continued declining purchasing power. Similarly, 24K gold revenue decreased by 16% compared to the same period last year due to the influence of Tet Nguyen Dan and the God of Wealth holiday.
On the contrary, wholesale jewelry revenue in January 2024 increased by 33% thanks to an increase in orders for Tet Nguyen Dan.
Looking at the revenue structure in the first month of the year, the retail sector contributed 52%, 24K gold (36%), wholesale (11%) and other (1%).
The average gross profit margin of PNJ in January 2024 reached 17.2%, a decrease from 18.2% in the same period of 2023 due to changes in the sales structure in the retail channel. Total operating costs decreased by nearly 4%. The operating cost/LCOE ratio in January increased from 47.5% to 52.1%.
As of January 31, 2024, PNJ had a total of 402 stores, an increase of 2 stores compared to the end of 2023, including 393 PNJ Gold stores, 3 CAO Fine Jewellery stores, 5 Style by PNJ stores, and 1 wholesale business center.
