Phu Nhuan Jewelry JSC (PNJ), Vietnam's largest jewelry retailer, is projecting a net loss of 6.271 trillion dong ($255 million) for 2026. This stark reversal comes after an initial forecast of a 3.408 trillion dong profit. The significant loss is largely attributed to a 7.071 trillion dong ($286 million) provision for customer buybacks of diamonds and other products, a direct consequence of a diamond smuggling scandal at its subsidiary, P-Lab. The scandal, which saw a former director of P-Lab charged, has prompted PNJ to revise its business plan to reflect an anticipated 80% return rate on previously sold items.
The scandal has led to a substantial decline in PNJ's profitability. For the months of July and August 2026, the company reported a net loss of 61 billion dong ($2.5 million), a significant drop from a 325 billion dong profit in the same period of 2025. Gross profit margin also tightened considerably, falling from 19% to approximately 10%. Additionally, the second quarter of 2026 marked PNJ's first quarterly loss in 18 years, with a reported deficit of 283 billion dong ($11.5 million) after recording 865.5 billion dong ($35 million) in provision expenses by July 2026.
PNJ's revised revenue target for 2026 is 39.057 trillion dong ($1.59 billion), a 20% reduction from its initial plan but still a 10% increase year-over-year. Excluding the provision for buybacks, the company expects a net profit after tax of around 800 billion dong ($32.6 million), a 77% decrease from its original profit forecast. To bolster its financial position during this rebuilding phase, PNJ plans to raise up to 8 trillion dong ($326 million) through various means, including a loan of up to 1.1 trillion dong ($44.8 million) from the chairwoman's family, of which approximately 700 billion dong ($28.5 million) has already been disbursed. As a result of the financial downturn, PNJ will not be distributing dividends for 2026.
