Jewellery firm (PNJ) loses as stores close for virus fight

Phu Nhuan Jewellery JSC (PNJ) has reported its revenue in April dropped 47 per cent on-year to VND501 billion (US$21.5 million).

 

The company recorded a loss of VND89 billion in April. PNJ made a profit of VND52 billion in April 2019.

In the first three months of the year, PNJ earned VND5 trillion worth of revenue and VND511.7 billion worth of profit.

Q1 revenue was up 4.5 per cent on-year but profit slid 5.8 per cent compared to the first quarter of 2019.

According to the jewellery retailer, stores were closed in the first half of April on the restriction rules by the Government to prevent the spread of coronavirus.

Revenue of selling jewellery products fell 62 per cent on-year, the most among PNJ’s sale activities. Meanwhile, gold sales were up 42 per cent on-year as investors and buyers sought safe havens in gold amid the virus outbreak.

Wholesale, institutional sales, and exports were heavily affected by COVID-19. The company reported its gross profit margin in April lost 16.2 percentage points to 8.4 per cent from 24.6 per cent in April 2020.

Since Viet Nam re-opened the economy after two weeks of social distancing, PNJ has seen its sales activity improve.

At the end of April, PNJ had a total of 292 PNJ Gold stores, 53 PNJ Silver stores and 33 PNJ Watch stores. In the first four months, the company opened 16 jewellery and watch stores while closing five jewellery stores.

The company shares (HoSE: PNJ) slipped 1.2 per cent to trade at VND63,200 apiece on Thursday.

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