Although the profit in May grew, when accumulated in the first 5 months of 2020, PNJ’s business results still went down due to the negative impact of COVID-19.
PNJ’s booth at a trade center. Photo: Song Ngoc.
Phu Nhuan Jewelry Joint Stock Company (Code: PNJ) has just released an operation report in May showing net sales of VND 1,019 billion, up 20% over the same period last year; profit after tax of 47 billion, up 22%.
The retail segment had the largest contribution to the revenue last month with the proportion of 57.5%, the wholesaling channel contributed 25.6%, the rest were gold bars, B2B and exports.
PNJ said that after the social gap, retail channel revenue in May increased by 20% compared to the same period in 2019, sales of gold bars and wholesale channel increased by 42% and 18% respectively.
The business results in May have improved significantly compared to April when PNJ posted a loss of 89 billion dong, the revenue also dropped by nearly half compared to April 2019.
Business results in May 2020 of PNJ. Source: pnj.com.vn
In the first 5 months, PNJ recorded a net revenue of 6,521 billion dong, down by 1% YoY, after tax profit was 364 billion dong, down by 30%. After 5 months, PNJ has implemented 45% of the revenue plan and 44% of the profit plan for the whole 2020.
At the end of May, PNJ had 350 stores, including 294 PNJ Gold stores, 52 PNJ Silver and 4 CAO stores. The company also has 44 outlets selling watches in the aforementioned stores (shop-in-shop).
Particularly in May, PNJ opened 4 new and upgraded 2 PNJ Gold stores, closed 4 Gold stores and 1 Silver store. The company also opened 11 new shop-in-shop watches.
Accumulated in the first 5 months of the year, PNJ opened 12 new and upgraded 2 jewelry stores, closed 5 stores, opened 19 new watch selling points.
In a recent analysis, Rong Viet Securities Joint Stock Company (VDSC) said the COVID-19 pandemic has raised many concerns about PNJ’s growth prospects because the main motivation for profit is the gold jewelry retail segment is suffering badly. In 2019, gold jewelry retail contributes nearly 90% of PNJ’s gross profit.
Even after the pandemic ends, the negative impact on consumer disposable income will continue to affect retail sales. VDSC believes that PNJ can overcome the above challenges thanks to a healthy balance sheet and improved performance thanks to the Enterprise Resource Planning (ERP) system launched last year.
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