* Q1 2025 results: 

- PNJ announced its Q1 2025 results with net revenue of VND9.6tn (USD377.8mn; -23% YoY) and NPAT of VND678bn (USD26.6mn; -8% YoY), fulfilling 28% and 29% of our respective full-year forecasts. 

- Net revenue trailed our forecasts due to weaker-than-expected retail sales, while wholesales and gold bar sales tracked ahead of our expectations. NPAT also fell short of our projection. We see potential downside risks to our 2025F forecasts, pending a more comprehensive review. 

* Segmental performance: 

- Retail sales (69.3% of total sales) growth slowed to only 6% YoY due to weak consumer spending for jewelry amid soft consumer spending and high gold prices, per PNJ. 

- Wholesales (12.0% of total sales) increased 23% YoY due to mom-and-pop shops increasingly purchasing jewelry from PNJ to ensure authentic origins. 

- Gold bar sales (18.1% of total sales) decreased 66% from a high base in Q1 2024. 

* Profitability: Blended GPM increased by 4.2 ppts YoY to 21.3% due to the contribution of retail sales increasing to 69.3% of total sales in Q1 2025 from 50.5% in Q1 2024. We estimate a slight 0.8 ppts YoY decline in retail GPM due to challenges in sourcing raw materials although PNJ has shifted its product portfolio toward higher-margin, lower gold content jewelry. Additionally, SG&A expenses/retail sales dropped by 1.0 ppts YoY to 17.8%, partly supporting NPM improving 1.2 ppts YoY to 7.0% in Q1 2025. 

* Store expansion: PNJ did not open any new stores in Q1 2025, maintaining its store count at 429 stores at the end of March. 

PNJ’s Q1 2025 results 

Source: PNJ, Vietcap (Segment revenue is gross revenue)