A store of Phu Nhuan Jewellery JSC in HCM City. This year, PNJ targets revenue growth and profit growth of 12 per cent and 13 per cent, respectively. — Photo pnj.com.vn

Phu Nhuan Jewellery JSC (PNJ), the largest jewellery retailer in Viet Nam, reports revenue up 5 per cent but profit down 4 per cent in the first quarter of this year.

The company earned revenue of VND5 trillion (US$213 million) and post-tax profit of VND411 billion in Q1.

This year, PNJ targets to achieve revenue of more than VND19 trillion and post-tax profit of VND1.35 trillion. Thus in Q1, the company completed 26% of the revenue target and 30% of the profit target.

Particularly in March, despite difficulties due to the COVID-19 pandemic, PNJ's monthly revenue still recorded a growth rate of 6 per cent over the same period last year, mainly thanks to the growth of 75 per cent of revenues from the sale of gold pieces.

During the month, retail sales decreased by 10 per cent due to temporary closures and social distancing orders under the Government's directives to prevent and combat the COVID-19 pandemic.

PNJ has closed 85 per cent of its stores since the last week of March. Of those, all stores in HCM City and Ha Noi, which contributes 55 per cent of total revenue, have been closed. This greatly affects PNJ's profit, as 90 per cent of the company's gross profit comes from the jewellery retail segment.

Although revenue from online sales in Q1 increased by 173 per cent against last year, the proportion of online sales was still very small, accounting for only 1 per cent of total revenue.

This year, PNJ targets revenue growth and profit growth of 12 per cent and 13 per cent, respectively.

However, Rong Viet Securities JSC (VDSC) said the current situation could make the plan infeasible.

"COVID-19 is greatly affecting PNJ's business results. The jewellery retail segment is suffering heavily from social distancing orders and temporary closures," VDSC said. — VNS