Facing the "double storm", PNJ sets a target of after-tax profit of 1,960 billion VND

Gold prices increase, jewelry purchasing power is unlikely to decline

On the morning of April 26, Phu Nhuan Jewelry Joint Stock Company (PNJ) held the 2025 Annual General Meeting of Shareholders to discuss, comprehensively evaluate and decide on many important contents such as: 2024 Business Results Report; 2025 Business Plan; Profit Distribution Plan, Fund Provisions; Share Repurchase Plan to protect the rights and interests of shareholders...

Speaking at the Congress, Mr. Le Tri Thong, Vice Chairman of the Board of Directors and General Director of PNJ, said that overcoming market fluctuations and completing the 2024 target is a great milestone, because this is a particularly stressful year for the gold, silver, gemstone and jewelry industry when facing a "double storm" of supply and demand. On the input side, there is a shortage of raw gold supply due to record high prices and tightening market control activities. On the output side, consumer purchasing power has decreased sharply, especially for luxury goods, leading to many businesses continuing to reduce their scale of operations or even closing down.

In the context of general difficulties, according to Mr. Thong, PNJ continuously innovates itself and proactively responds to unexpected market fluctuations. Thanks to that, the company maintains strong growth momentum with revenue reaching VND37,823 billion and after-tax profit reaching VND2,113 billion, up 14.1% and 7.2% respectively compared to the peak set last year.

PNJ Annual General Meeting of Shareholders on the morning of April 26.

The jewelry retail segment contributed more than 58% to PNJ's total revenue last year, increasing by 14.4% - higher than the company's overall growth rate. To achieve impressive results in harsh business conditions, PNJ has steadfastly pursued many strategies such as expanding its store network, upgrading retail and marketing capabilities, optimizing operations and strictly controlling costs.

Specifically, PNJ identifies market expansion and customer approach as key priorities and needs to be implemented in both depth (product portfolio) and breadth (geographic area).

The company applies new technology in the process of implementing marketing and communication activities to maintain connection, proactive interaction and create a different shopping experience for customers. In addition, in 2024, the company will open 41 new stores in markets with much room for development, bringing the total number to 429 stores in 58/63 provinces and cities. The combination of these factors has helped PNJ increase the number of new customers as well as improve the rate of returning old customers, thereby firmly holding the number one position in the jewelry retail market share.

“It is under harsh pressure that the steadfast warrior spirit and flexibility of thousands of PNJ employees are once again demonstrated, helping the company “steadily steer” to continue moving forward, conquering new heights,” Mr. Le Tri Thong added.

Cautious business goals, long-term investment

Forecasting that the "double storm" will not end soon, PNJ's Board of Directors has submitted to the General Meeting of Shareholders a plan to achieve revenue of VND 31,607 billion and after-tax profit of VND 1,960 billion this year.

At the end of the first quarter of this year, PNJ's net revenue reached VND9,635 billion, down 23.5% over the same period last year. Profit after tax decreased by more than 8% compared to the first quarter of 2024 to VND678 billion. Thus, after the first 3 months of the year, the Company has completed 35% of the profit plan set for the whole year.

Regarding the business performance of each channel, retail jewelry revenue increased by 6% over the same period, wholesale jewelry revenue increased by 22.8% over the same period and accounted for 12% of the company's total revenue structure, equivalent to VND 1,156 billion. In contrast, 24K gold revenue decreased by nearly 66% over the same period.

Explaining the business plan built on the principle of prudence, Ms. Cao Thi Ngoc Dung, Chairwoman of PNJ's Board of Directors, said that consumers are tending to spend more cautiously, leading to a decline in purchasing power in the retail industry in general and luxury goods in particular.

Consumer purchasing power is expected to recover through the Government 's stimulus policies to achieve the GDP growth target of over 8%, but the jewelry and luxury industry often lags behind. In a positive scenario, purchasing power may begin to recover in the second half of this year. PNJ considers supply difficulties to be a major challenge for business operations this year.

The company is making efforts to prepare raw gold to meet the demand for jewelry production, but many purchases are more difficult than before due to strong price fluctuations and scarce supply. In addition, PNJ's caution in setting out this year's business plan stems from the perception that "in danger there is opportunity".

Therefore, instead of focusing on immediate profits, PNJ will devote long-term investment resources to continue increasing market share, enhancing the company's competitive position in the jewelry industry and expanding into new product lines in line with its strategic vision to 2030. PNJ's operations this year will revolve around the strategy: expanding the store system, increasing factory capacity, exploiting the jewelry retail market and consolidating the supply chain.

Specifically, PNJ plans to take advantage of the market gap this year to open 12-25 new stores to increase its presence in potential markets. This is an important part of the distribution network expansion strategy, helping the company quickly reach its goal of 500 stores nationwide before 2030.

At the same time, the Company increased the capacity of its jewelry factory from 4 million to 5 million products per year, ready to meet consumer demand when the market recovers. In addition, PNJ will continue to exploit the jewelry retail market more deeply by promoting the strategy of launching the Mancode by PNJ brand for men. This is considered a fertile land that has not been fully exploited.

With the results achieved in 2024, PNJ's Board of Directors proposed to pay dividends according to the plan of 20% in cash. Of which, the Company has provisionally paid 6%, so it will pay an additional 14% in the coming time, equivalent to 473 billion VND. Regarding profit distribution, PNJ wants to allocate 40% of profits to the development investment fund, 5% to the welfare reward fund. The dividend target is maintained at 20% in cash.

Regarding the issuance of shares under the employee stock option program (ESOP), the Company plans to issue at a rate of 0.96% of the total outstanding shares, equivalent to 3.24 million shares. The preferential price is VND 20,000/share, much lower than the current level of over VND 70,000. The subjects are members of the Board of Directors, executive board, senior advisors, managers, experts and key personnel.

Source: https://baodautu.vn/doi-dien-con-bao-kep-pnj-dat-muc-tieu-lai-sau-thue-1960-ty-dong-d273506.html