Phu Nhuan Jewelry’s 2Q after-tax profit falls to 5-year-low

After-tax profit fell 81 percent from a year ago while second quarter revenue dropped 7.3 percent to VND2.74 trillion ($117.7 million), fulfilling 53.5 percent and 53 percent of the revenue and profit target respectively.

In April, the jewelry retailer had to close most of its stores temporarily following the instruction of the government to prevent the spread of coronavirus. Sales dropped sharply in the month. However, business recovered in May and June, when when the pandemic was controlled in the country.

In the quarter, the company's retail channel sales decreased by nearly 9 percent, wholesale channels decreased by 24 percent while 24K gold sales increased by 10 percent. Selling expenses increased slightly by nearly 1 percent to VND289 billion.

The jeweler retailer recorded VND440 billion ($19 million) after-tax profit in the first half of this year, down 26 percent from 2019 while remained unchanged at VND7,746 billion ($333 million).

The company expects 2020 revenue to fall 15 percent to VND14,486 billion and VND832 billion profit, down 30%. As of end-June, the company with 394 stores reported total assets at VND8,157 billion ($350.4 million).