Phu Nhuan Jewelry Joint Stock Company (PNJ) reported that its net revenue for the first five months of 2024 amounted to 19,546 billion VND, with a profit after tax of 1,051 billion VND. The company shared its business performance for the period ending May 2024 on June 20, revealing a 36.9% increase in net revenue and an 8.5% rise in profits compared to the same period the previous year. PNJ attributed this growth to synchronized business activities across its different channels.
Retail jewelry revenue saw a 12.8% increase during the first five months of 2024, driven by a flexible strategy and the continuous introduction of new collections tailored to customer preferences. The company also successfully executed various marketing campaigns and sales programs that attracted new customers and increased the rate of return customers. Additionally, wholesale jewelry revenue for the same period experienced a 16.4% growth compared to 2023.
Despite the strong performance, PNJ noted that the average gross profit margin decreased to 16.5% in the first five months of 2024, down from 19% in the same period in 2023, mainly due to changes in the revenue structure across business segments. The company highlighted the growth in 24K gold bar revenue, driven by heightened gold purchases for saving and investment, although the profit margin for 24K gold remains low and is not the primary focus of the company.
In response to these challenges, PNJ emphasized optimizing resources and enhancing operational efficiency to maintain positive average gross profit margins. The company remains focused on increasing the number of new customers and cultivating loyalty among existing customers. As of May 2024, PNJ operated 405 stores nationwide, including various brand concepts such as PNJ branches, Style by PNJ, CAO Fine Jewelery, and a wholesale business center.
On a significant note, Fortune magazine included PNJ in its list of the top 500 largest companies in Southeast Asia based on revenue in fiscal year 2023, marking the first appearance of the company on this prestigious ranking.