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BUSINESS SPOTLIGHT

PNJ see impressive 9M growth

Released at: 14:38, 19/10/2017 BUSINESS SPOTLIGHT

PNJ see impressive 9M growth

Photo: PNJ

Business results in first nine months puts the jewelry company firmly on track to meet its annual targets.

by Tue Lam

The Phu Nhuan Jewelry Joint Stock Company (PNJ) has announced its business results for the first nine months of the year, with profit reaching 84 per cent of the annual plan and growth expected to come in at 40 per cent year-on-year.

Positive results

Total revenue in the period was VND7.91 trillion ($348 million), up 34 per cent year-on-year and representing 77 per cent of the 2017 target. Gross profit was VND1.31 trillion, up 31 per cent year-on-year and 79 per cent of the annual plan, while pre-tax profit reached VND629 billion ($27.67 million), up 42 per cent and 84 per cent of the annual target.

With these results, PNJ affirms its position as a leading jewelry company in Asia with the largest jewelry retail network in Vietnam. It forecasts growth of 40 per cent this year.

PNJ has also expanded its retail network to nearly 250 stores nationwide so far, eleven of which were opened in the third quarter, and it will continue its network expansion in the fourth quarter as planned since the beginning of the year.

It has reaffirmed its strategy of focusing on its core business - jewelry trading - and rapidly increasing its market share to position itself as a leading regional jeweler with the largest retail network in Vietnam.

PNJ is constantly opening new stores, expanding its retail network nationwide

Understanding the effectiveness of its retail network, PNJ is striving to boost its expansion to 300 stores by 2018, which means 50 new openings.

According to Bao Viet Securities Company (BVSC), PNJ has likely to meet the targets set out by its Board of Directors (BOD), which will create a momentum for its jewelry business to grow faster over the 2018-2019 period.

BVSC also assessed that the strategy of rapid retail network expansion together with supply chain improvements will bring PNJ positive results not only in 2017 but also in the long run. Its recent success in mobilizing VND990 billion ($43.56 million) and putting pressure on the BOD is motivation to become more ambitious in long-term development strategies. The target of 300 retail stores by the first half of 2018 demonstrates a greater ambition for PNJ’s development orientation from the board.

Company leaders’ desire: Build PNJ into a continuously learning organization

2016 was an exciting year for PNJ, especially in gold jewelry retail sales. The achievements last year brought great pride and motivation to PNJ’s BOD and was a return on their effort.

According to Ms. Cao Thi Ngoc Dung, Chairman of the BOD, 2017 is the opening year of the second stage of the company’s ten-year development strategy from 2012-2022, focusing on three main activities: improving human resources quality, systemizing procedures, and computerizing management systems.

PNJ will also promote the effectiveness of its retail network by achieving the targeted 300 stores by 2018, increasing the number of standard stores, focusing on opening more stores in two channels - independent and in supermarkets or trade centers, and increasing its Net Promoter Score (NPS).

PNJ has been honored with an ASEAN Excellence in Enterprise award

Many people ask how PNJ has developed so strongly in recent times. According to its management, this is due to its retail network expansion, a more professional sales team, a customer-focused product strategy, and marketing innovation, with recent collections being emotionally promoted better and deeper into customer minds.

In addition to the continuous efforts of all PNJ staff, the close supervision and activeness of its BOD have contributed to implementing a comprehensive and effective operational strategy.

Thanks to adopting a proper organizational structure, careful network development planning, effective marketing strategies, and a wide range of training activities, PNJ has built a foundation for strong and sustainable development and for reaching its vision of “Becoming one of the leading jewelry designing and manufacturing companies in Asia and securing the leading position in the medium and high-class jewelry segment in Vietnam”.

As many new brands enter the jewelry market, PNJ always reviews its past activities to build a proper business strategy and improve its competitiveness by applying new technologies, developing its distribution network, and building a continuously learning company to promote innovation among human resources to affirm its leading position, PNJ leaders said.

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