Phú Nhuận Jewellery sees revenue up but profit down in Q1

HÀ NỘI — Phú Nhuận Jewellery JSC (PNJ), the largest jewellery retailer in Việt Nam, reports revenue up  五 per cent but profit down  四 per cent in the first quarter of this year.

The company earned revenue of VNĐ 五 trillion (US$ 二 一 三 million) and post-tax profit of VNĐ 四 一 一 billion in Q 一.

This year, PNJ targets to achieve revenue of more than VNĐ 一 九 trillion and post-tax profit of VNĐ 一. 三 五 trillion. Thus in Q 一, the company completed  二 六% of the revenue target and  三0% of the profit target.

Particularly in March, despite difficulties due to the COVID- 一 九 pandemic, PNJ's monthly revenue still recorded a growth rate of  六 per cent over the same period last year, mainly thanks to the growth of  七 五 per cent of revenues from the sale of gold pieces.

During the month, retail sales decreased by  一0 per cent due to temporary closures and social distancing orders under the Government's directives to prevent and combat the COVID- 一 九 pandemic.

PNJ has closed  八 五 per cent of its stores since the last week of March. Of those, all stores in HCM City and Hà Nội, which contributes  五 五 per cent of total revenue, have been closed. This greatly affects PNJ's profit, as  九0 per cent of the company's gross profit comes from the jewellery retail segment.

Although revenue from online sales in Q 一 increased by  一 七 三 per cent against last year, the proportion of online sales was still very small, accounting for only  一 per cent of total revenue.

This year, PNJ targets revenue growth and profit growth of  一 二 per cent and  一 三 per cent, respectively.

However, Rồng Việt Securities JSC (VDSC) said the current situation could make the plan infeasible.

"COVID- 一 九 is greatly affecting PNJ's business results. The jewellery retail segment is suffering heavily from social distancing orders and temporary closures,"大众VDSC said. — VNS