PNJ’s profit and revenue plummet in Q2
According to PNJ, due to the COVID-19 outbreak, the company had to temporarily close 85 per cent of its stores in April.
Phu Nhuan Jewelry JSC (PNJ) recorded revenue and post-tax profit of VND2.7 trillion (US$116.8 million) and VND31.7 billion in the second quarter of this year, down 7 per cent and 81 per cent year-on-year, respectively.
According to PNJ, due to the COVID-19 outbreak, the company had to temporarily close 85 per cent of its stores in April.
Although jewellery sales recovered in the remaining two months of the quarter, PNJ’s revenue was still significantly affected.
In the first six months of this year, PNJ’s revenue hit VND7.75 trillion, equivalent to the first half of 2019. However, the increase in the cost of goods sold caused pre-tax profit to decrease by nearly 10 per cent.
Loan interest expenses doubled in the same period, resulting in a slump of 26 per cent in post-tax profit in the first half, reaching VND440 billion.
By the end of the second quarter, total assets of PNJ decreased by VND446 billion from the beginning of the year to VND8.2 trillion.
According to PNJ leaders, the company plans to open 31 more stores and invest in facilities and machinery for the factory No. 2–PNJP this year.
In the future, PNJ will focus on wholesale activities, competing with portable products on the market. The company has registered additional occupations to supplement e-commerce and instalment sales. — VNS
