PNJ targets higher revenue and profit this year

08:00 | 18/04/2021
Despite COVID-19 reducing turnover in the last two years, Phu Nhuan Jewelry JSC (PNJ) has set targets of more than VND21 trillion ($913 million) of revenue and net profit of VND1.23 trillion ($53.5 million) this year.

According to PNJ chairwoman Cao Thi Ngoc Dung, these targets mean a 20 and 15 per cent increase in revenue and net profit against last year.

At its annual general meeting of shareholders on April 17 in Ho Chi Minh City, Dung said that 2020 was a remarkable year for PNJ with stronger business recovery after a long time of being suppressed by COVID-19.

“While many companies are forced to reduce their business, PNJ is on a path of steady development and growth,” Dung said.

pnj targets higher revenue and profit this year
PNJ targets higher revenue and expanded to the international market this year

The digital transformation in manufacturing and marketing and promotion activities has helped PNJ maintain stable growth.

Dung said that many investors had shown doubts about PNJ's targets, but the company’s management board confirmed that business prospects this year are much brighter as the pandemic is easing up and the economy has been recovered step by step.

“We have been carefully preparing for the next step of development in the next two years, then we do believe that we can reach that target,” Dung said.

In order to cope with the market turmoil, PNJ has actively restructured its retail outlets. In 2020, the company opened 29 new outlets but closed 36 ones in order to have better rental and locations. This year, PNJ plans to open 40-45 new outlets and invest more in production technologies and product design.

“When global logistics broke down, we have refreshed our entire network. When the first social distancing order from the government was sounded, we have right away implemented online and digital marketing and promotion. These timely reactions have helped maintain our business."

At the meeting, shareholders also approved plans for 2021, including a private placement of 15 million shares - equivalent to 6.6 per cent of its outstanding shares, to raise its charter capital from VND2.276 trillion ($98.96 million) to VND2.426 trillion ($105.5 million).

The funds raised will be used to strengthen jewellery production, improve production technologies and product designs, expand the retail network, and speed up digital transformation.

It also approved the issuance of more than 3.4 million shares at VND10,000 per share to employees who have made outstanding contributions.

By Bich Ngoc

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