Closing most stores for pandemic, PNJ reports big losses in April
Despite closing a lot of stores due to the pandemic, PNJ reported a decrease in both revenue and profit for the first four months, with some losses in April.
PNJ reported its first losing month since last August
Phu Nhuan Jewelry JSC (code: PNJ) has just announced its business results of April 2020, which reported a 47 per cent decrease to VND501 billion ($21.8 million). After-tax profit in April reported VND89 billion ($3.87 million) in loss, while in the same period last year it gained VND53 billion ($2.3 million). This is the first time PNJ lost since the company started announcing its monthly business results in last August.
Accordingly, PNJ has closed most of its stores to honour social distancing during the pandemic, so they were open for only half of April, which meant reduced revenue and negative profit.
In April, PNJ's retail revenue dropped by 62 per cent, while gold sales increased by 42 per cent on-year. The wholesale, B2B, and export segments also reported poor performance due to the health crisis gripping Vietnam and the world.
The profit margin in April declined sharply to 8.4 per cent from 24.6 per cent, due to the small margin of the gold segment.
Throughout the first four months of 2020, PNJ gained VND5.502 trillion ($239.2 million) in revenue, and VND320 billion ($13.9 million) in after-tax profit, down 4 and 34 per cent on-year. Profit margin in this period was 19.8 per cent, lower than the 22.4 per cent last year. As a result, PNJ has accomplished 29 per cent of its yearly revenue plan and 24 per cent of its yearly profit target.
At the end of April, PNJ operated 349 stores, including 292 PNJ Gold, 53 PNJ Silver, 4 CAO Fine Jewellery, and 33 PNJ Watch stores. During the month, the company opened two new Gold stores, closed three jewellery stores, and opened six watch stores.