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PNJ more than doubles pre-tax profit

Released at: 11:52, 26/10/2016 BUSINESS SPOTLIGHT

PNJ more than doubles pre-tax profit

Photos: PNJ

Phu Nhuan Jewelry continues to set the industry standard in business results and store openings this year.

by Doanh Doanh

Phu Nhuan Jewelry (PNJ) has announced pre-tax profit of VND440 billion ($19.7 million) in the first nine months of this year, representing 96 per cent of this year’s target and 2.2 times higher than in the same period last year, when it reached VND198 billion ($8.8 million).

PNJ opens one new store every two weeks and holds the largest share in Vietnam’s jewelry market. Its figures for the first nine provide a solid base for it to reach its 2016 targets.

Gross profit in the first nine months was VND1.015 trillion ($45.4 million), an increase of 28 per cent year-on-year. Total revenue reached VND6.035 trillion ($270 million), up 6 per cent,with jewelry revenue rising 27 per cent.

According to leaders at PNJ the reason it has achieved such impressive business results is due to it adopting strategic steps for each stage of development. In particular, it’s focus on its core business activity - jewelry retail - has helped it record continuous profits in recent years.

After a reset to its business plan, the proportion of gold jewelry sales out of total sales increased from 21 per cent in 2011 to 80 per cent now, while the proportion of sales of gold bars fell from 50 per cent to less than 20 per cent.

Expanding networks and controlling market share

Having focused on strongly developing its distribution and retail networks, PNJ now boasts 212 stores in 47 cities and provinces throughout Vietnam.

It expects that over the final three months of the year it will open 12 more stores, bringing its total to 224.

With such positive business results, PNJ has again confirmed its development orientation and sound business strategy, maintaining its position as the leading jewelry company in Vietnam and almost guaranteeing its annual targets will be met.

In addition to marketing activities to build and promote its brand, PNJ has made a strong impression on the public, supporting Vietnam’s Next Top Model 2016 and again was the only jewelry brand involved in Vietnam International Fashion Week 2016 (VIFW) Autumn-Winter in Hanoi.It was also the exclusive sponsor of the Looking for Talented Designers Vietnam 2016 contest held within the framework of VIFW.

PNJ also signed an official brand cooperation agreement in September with Swarovski, the reputable Austrian group, affirming its prestige on the global stage and reaching a breakthrough in design.

Sustainable development

PNJ is always heavily involved in social activities that benefit communities, as its philosophy for sustainable development is “to combine customer benefits and social benefits with business benefits”.

The “PNJ Home” project has finished building 42 houses, bringing great joy to poor people all around the country. Other projects to protect and beautify the environment have been conducted nationwide through the program “Thank You for Not Littering”. Medical activities, caring for the poor, and education development, such as medical visits and treatment and scholarships, are also regularly provided by PNJ and have contributed to improving many lives in Vietnam. 

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