Jeweler PNJ’s July Revenue Exceeds $100 Million

PNJ’s business results report for the first seven months of 2024 shows that in July alone, the company recorded 2,508 billion VND in net revenue, a 6% increase compared to July 2023, but profit after tax decreased by 42%, to 51 billion VND.

Source: PNJ

For the first seven months of 2024, PNJ achieved 24,621 billion VND in net revenue, a 31% increase compared to the same period last year, and 1,218 billion VND in profit after tax, a slight 4% increase.

Compared to the 2024 plan to achieve 37,148 billion VND in net revenue and 2,089 billion VND in profit after tax, PNJ has completed more than 66% of the revenue target and 58% of the profit target after seven months.

Source: PNJ

In terms of PNJ’s revenue structure, all segments showed growth. Specifically, retail revenue in the first seven months of 2024 increased by 15% compared to the same period last year, contributing 52% of total revenue. PNJ attributed this result to its efforts in launching new collections that cater to customer preferences, effective marketing campaigns, and sales programs that successfully attract new customers and increase the rate of returning customers. Meanwhile, wholesale jewelry revenue for the same period also increased by 25% year-on-year.

The average gross profit margin for the first seven months was 16.4%, slightly lower than the 18.7% recorded in the previous year. This change is due to the variation in the revenue structure of each business segment. In the context of a vibrant gold market, PNJ’s gold bar revenue increased by 67% year-on-year, leading to a higher contribution of 24K gold revenue (with a lower profit margin) at 39% of total revenue, up from 30.4% in the previous year.

Although the overall profit margin dipped slightly, the gross profit margins of the other business segments remained stable as PNJ implemented measures to optimize resources and enhance operational capabilities, thus maintaining a positive average gross profit margin.

In July, PNJ opened 17 new stores and closed 8, bringing the total number of physical stores nationwide to 400 as of the end of July 2024. These include 391 PNJ stores, 5 Style by PNJ stores, 3 CAO Fine Jewellery stores, and 1 Wholesale Business Center.

The past trading week was likely an unforgettable period for PNJ shareholders, as after a long accumulation period, the PNJ stock price suddenly accelerated, soaring from 96,900 VND/share to a historic high of 109,300 VND/share. At the close of the week on August 23, 2024, PNJ’s stock price retreated slightly to 108,900 VND/share but still reflected a remarkable increase of over 27% since the beginning of the year.

Khang Di