Gold price increased dramatically, PNJ company had unexpected profit

(NLDO) – PNJ Company unexpectedly reported a decrease in after-tax profit in the first quarter of 2025 in the context of the shocking continuous increase in the price of SJC gold bars and gold rings.

At the end of April 22, Phu Nhuan Jewelry Joint Stock Company (PNJ) announced its business results for the first quarter of 2025 with net revenue reaching VND9,635 billion and profit after tax reaching VND678 billion. Notably, PNJ's net revenue and profit after tax decreased by 23.5% and 8.1% respectively compared to the same period last year.

According to PNJ, business results declined amid weakening jewelry market purchasing power due to high gold prices and slowing overall retail market demand in March.

In fact, the price of SJC gold bars and 99.99 plain gold rings has increased dramatically in recent times. If calculated in the first quarter of 2025, the price of SJC gold bars and gold rings has increased by about 17 million VND/tael, an increase of about 20%.

The price of SJC gold bars and gold rings increased sharply, but revenue from this segment of PNJ company decreased.

However, PNJ's 24K gold revenue dropped sharply by 65.8% compared to the same period. Difficulties in raw material sources and limited supply of SJC gold bars and plain gold rings from the end of 2024 caused revenue in this segment to drop sharply. Although demand for SJC gold and gold rings remains high, the company prioritizes resources for the jewelry segment - its core business.

In the context of raw material scarcity, PNJ Company has managed to invest in researching new products to increase market share and optimize production capacity.

PNJ's retail jewelry revenue in the first quarter of 2025 increased by 6.1% thanks to network expansion, market-appropriate product strategy and improved service quality. At the same time, wholesale jewelry revenue in the first quarter of 2025 increased by 22.8% over the same period, thanks to the advantage of being a reputable manufacturer, in a market context that increasingly emphasizes transparency and product traceability.

At the end of the day, the price of SJC gold bars was listed by businesses at 122 million VND/tael for buying and 124 million VND/tael for selling. Meanwhile, the price of plain gold rings was traded around 117 million VND/tael for buying and 120 million VND/tael for selling.

Source: https://nld.com.vn/gia-vang-tang-soc-cong-ty-pnj-co-muc-loi-nhuan-bat-ngo-196250422201615542.htm