PNJ doubles pre-tax profit
Phu Nhuan Jewelry Company (PNJ) achieved VND440 billion in pre-tax profit in the first nine months of 2016, 2.2 times higher than the same period last year and meeting 96% of the full-year target. The Vietnamese firm has been opening a new store in every two weeks to maintain its biggest local market share. This is an impressive performance given the current economic conditions, and a solid foundation for PNJ to obtain its goals for this year.
In the period PNJ posted total revenue of VND6,035 billion, up 6% year-on-year, and gross profit of VND1,015 billion, up 28%. Its jewelry revenue grew 27% while its pre-tax profit was VND440 billion.
According to PNJ leaders, this success is attributable to the company’s business strategy. The company always focuses on its core business: jewelry retail, which has brought steady profit growth in recent years. A shift in its business strategy has helped increase the proportion of jewelry in total sales from 21% in 2011 to 80% and scale down that of bullion from 50% to less than 20%.
Expanding sales network and maintaining market share
With a focus on expanding its distribution system, PNJ has opened 212 stores in 47 provinces in the country. In the final quarter of this year, PNJ will launch 12 more stores, bringing the total number of retail outlets to 224. PNJ has maintained its leading position in the local jewelry market, so it is expected to obtain positive results in the last quarter of the year.
Regarding marketing activities, PNJ has taken part in popular reality shows and programs such as Vietnam’s Next Top Model 2016 and the Vietnam International Fashion Week 2016 (VIFW) Autumn-Winter in Hanoi, where it was the exclusive sponsor of a design contest. In addition, PNJ has clinched an official brand cooperation agreement with Swarovski, strengthening its brand on the global market.
With the motto of “Harmonizing the benefits of the company, customers and society,” PNJ has always promoted the community spirit. The “PNJ Home” project has given 42 homes to the poor while the company has launched a “Thank you for not littering” campaign in many parts of the nation. PNJ staff have also joined hands in many activities such as free medical checkups and treatments, and granting of scholarships.