Despite a 27% drop in wholesale sales, PNJ still posted a profit of nearly 1 trillion VND.

According to the business report for the first five months of 2023 of Phu Nhuan Jewelry Joint Stock Company (PNJ), in May alone, the company recorded net revenue of VND 2,223 billion and after-tax profit of VND 111 billion, approximately the same as in April 2023.

At the end of the first five months of the year, PNJ's net revenue reached VND 14,281 billion, and after-tax profit reached VND 970 billion. Thus, PNJ has completed 50.1% of its annual profit plan amidst the current difficulties in the jewelry market.

PNJ earned a profit of 970 billion VND in the first five months of the year, despite headwinds in the jewelry market. (Photo: Dai Viet)

According to a PNJ representative, due to the overall decline in market purchasing power, the company's retail jewelry sales in the first five months of the year decreased by 8.7% compared to the same period in 2022. However, by continuously implementing new business strategies and market approaches, PNJ has maintained its market share and kept the decline lower than the overall market average.

Furthermore, due to a decline in domestic jewelry purchasing power and corporate orders, PNJ's wholesale revenue in the first five months of the year decreased by 27% compared to the same period in 2022. However, a positive point is that PNJ continues to grow in the number of new customers. Revenue from 24K gold in the first five months of the year only decreased slightly by 1.4% compared to the same period.

Furthermore, the average gross profit margin for the first five months of 2023 reached 19%, compared to 17.8% in the same period last year, thanks to a change in the sales structure. Total operating expenses for the past five months increased by 2.1% year-on-year, and the operating expense/gross profit ratio increased from 51.7% (in 2022) to 54.1% due to higher prices caused by inflation.

As of the end of May 2023, the PNJ system had 376 independent stores, including 355 PNJ Gold stores, 7 PNJ Silver stores, 3 CAO Fine Jewellery stores, and 5 Style by PNJ stores...

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Source: https://vtc.vn/doanh-thu-ban-si-giam-27-pnj-van-lai-gan-1-000-ty-dong-ar801047.html