PNJ reduces targets for this year due to pandemic
PNJ reduces targets for this year due to pandemic
Shareholders of Phu Nhuan Jewelry Joint Stock Company (PNJ) approved the company’s financial statements for last year, a number of targets for this year, profit distribution plans and other important proposals at its annual general meeting held in HCM City on Wednesday. 
Le Tri Thong, the company’s CEO, said PNJ achieved net revenues of VND17 trillion (US$733.4 million) last year, up 16.7 per cent from the previous year but nearly 7 per cent short of the target.
But thanks to the company’s optimisation of costs, profit after tax was 1 per cent above the target and 24.4 higher than the previous year at VND1.19 trillion ($51.3 million), he said.
The Covid-19 pandemic this year has greatly affected the market as well as consumers’ behaviour and demand, but PNJ has proactively adjusted its plans to cope, he said.
This has helped it to achieve positive growth in the first quarter, he added.
PNJ achieved a year-on-year increase of 5 per cent in net revenues and profits in the first quarter to VND5 trillion ($215.6 million) and VND408 billion ($17.6 million).
Chairwoman Cao Thi Ngoc Dung said the pandemic and trade wars would continue to badly affect many economies around the world, including Viet Nam’s, prompting consumers to cut unnecessary spending.
Jewellery wholesale and export activities have been stagnant, and so PNJ has cut its revenue and profit targets for 2020, she said.
It now targets net revenues of VND14.48 trillion (nearly $625 million) and profit before tax of VND1.047 trillion ($45.16 million), 15 per cent and 30 per cent down from 2019, she said.
The company plans to speed up digital transformation and establish a digital transformation centre, she said, explaining, “It is impossible to move forward in the changing environment after 2020 ... if we don’t invest in it."
She said PNJ would continue to focus on innovation and restructuring the product portfolio to introduce new lines, and developing new sales channels.
It plans to invest to increase its production capacity and become the leading jewellery production company in the region, enhance technological capabilities, and adopt modern retail management practices to ensure to maintain its leading position in the industry, she said.
PNJ plans open 31 more stores this year, raising its total number to 377.
Shareholders approved the issuance of more than 2.3 million shares at VND20,000 each to its key staffs who have made outstanding contributions.
The meeting also voted in three new members of the board of directors to replace three who resigned recently.
