11:08 (GMT +7) - Saturday 25/11/2017

BUSINESS SPOTLIGHT

PNJ's Q1 profit doubled, up by 105%

Released at: 08:00, 08/05/2017 BUSINESS SPOTLIGHT

PNJ's Q1 profit doubled, up by 105%

Photo: PNJ

Jewelry giant's AGM hears of impressive business results in Q1 2017 and 2016 as a whole, as well as strategy for future development.

by Tue Lam

The Phu Nhuan Jewelry Joint Stock Company (PNJ) recorded impressive business results in the first quarter of this year, with pre-tax profit of VND308 billion ($13.5 million), up 105 per cent year-on-year and representing 41 per cent of the full-year target.

Q1 achievements

Total revenue stood at VND3.1 trillion ($136.4 million), up by 34 per cent year-on-year and representing 41 per cent of the pretax profit target.

Gold jewelry retail sales increased 42 per cent year-on-year while PNJSilver’s retail jewelry sales rose 49 per cent. 

PNJ opened new outlets during the first quarter, affirming the superiority of its retail network nationwide. Five outlets were opened, bringing the total to 225 in 40 cities and provinces nationwide.

Most outlets are located in prime locations and have a variety of jewelry on sale with high quality and suitability for each region’s tastes. At the same time, sales staff are dynamic and enthusiastic, earning the confidence of customers in each locality. The Net Promoter Score (NPS) has risen to 8.56.

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Absolute confidence from PNJ’s shareholders

PNJ held its annual general meeting (AGM) at the White Palace Convention Center in Ho Chi Minh City on April 27. In addition to a report on its first quarter business results, the AGM also heard of the company’s performance in 2016 and the first stage of its ten-year development strategy for 2012-2022 (2012-2016). Future operations were also introduced.

2017 is a pivotal year in PNJ’s ten-year development strategy for 2012-2022, according to its Board of Directors. The company plans to increase total revenue this year to over VND10.2 trillion ($448.8 million), of which retail sales will total VND5.35 trillion ($235.4 million) and profit VND751 billion ($33 million).

The dividend payment plan will remain at 18 per cent, in cash. In the next five-year plan, PNJ has set a target of growing every year in the three segments of jewelry sales, gross profit, and after-tax profit, by at least 20 per cent, continuing to be among Vietnam’s Top 10 enterprises with sustainable development, advanced operating procedures, and high information technology application markets of potential, and have 300 outlets by 2018, when it celebrates its 30th anniversary.

In order to mobilize capital for its retail expansion, PNJ has approved the issuance of more than 9.8 million shares, raising its total charter capital to VND1.08 trillion ($47.5 million), which will be used for investing and supplementing working capital for 40 new outlets.

In addition to restructuring its jewelry manufacturing facilities, PNJ will also invest and improve its information technology strategy and thoroughly apply information technology into production and business activities. It is also constantly striving to build a corporate culture, in particular a culture of continual learning, creativity, and community and social responsibility.

Shareholders also approved a resolution electing a new Board of Directors for the 2017-2022 term, including Ms. Cao Thi Ngoc Dung as Chairwoman, Mr. Le Tri Thong as Vice Chairman, and Mr. Le Quang Phuc, Mr. Le Huu Hanh, Mr. Nguyen Vu Phan, Ms. Nguyen Thi Cuc, Ms. Pham Thi My Hanh, and Ms. Pham Vu Thanh Giang as Members of the Board of Directors.

To reach these targets, in addition to adding senior personnel, PNJ will also undergo in-depth development in its core business, continue to maximize its distribution network, especially in the potential markets.

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