Pranda Jewelry Public Company Limited (PDJ), the world’s leading jewelry manufacturers renowned for its commitment to craftsmanship and sustainable business practices, has announced its operating results for the second quarter of 2024. The company reported consolidated revenue of THB 831.39 million, a 25.58% increase compared to the same period in 2023, which recorded revenue of THB 662.05 million.
The growth was primarily driven by the Production Business, accounting for 71% of total revenue, which saw a robust 28% increase year-on-year, fueled by heightened orders from key customers in Europe and America. Meanwhile, the Omnichannel Business, which represents 29% of total revenue, grew by 21% compared to the same period last year, with significant contributions from the expanding distribution network in India. Thailand’s sales also rose, partly due to the upward adjustment in retail prices following an increase in gold prices.
Pranda Group’s gross profit margin for Q2/2024 reached THB 228.37 million, with an overall gross profit margin of 27.47%, an improvement from 20.51% in Q2/2023. This growth was driven by increased production efficiency and higher sales in the production segment. The company achieved an operating profit of THB 66.71 million, a significant turnaround from a loss of THB 21.86 million in the same period last year.
Strategic Focus for Growth
Mr. Chanat Sorakraikitikul, Vice Chairman of the Group Executive Committee at Pranda, emphasized the company’s ongoing strategic focus on maintaining competitive pricing and enhancing operational efficiency to support future growth. Key priorities include optimizing order planning, balancing production capacity throughout the year, and fostering a culture of transformation that embraces continuous improvement. With these efforts, the company expects sales from the production base to increase by 31% year-on-year in the first nine months of 2024, exceeding the target of 14%. Excluding raw material sales, revenue is anticipated to rise by 8%.
Omnichannel Business Expansion
Pranda’s Omnichannel Distribution business group is implementing several strategic initiatives for 2024 to expand its customer base and enhance its market presence:
- PRIMA Thailand is focusing on attracting young generation segment through lifestyle-driven marketing strategies while retaining its Prestige and Premier segment through exclusive campaigns. The company is also expanding its online presence and revamping store formats to enhance the customer experience while maintaining PRIMA’s brand identity.
- PRIMA Vietnam has followed suit by revamping its stores in line with the new format introduced in Thailand, while also targeting corporate account to expand market opportunities.
- PRIMA India continues to distribute PRIMA ART products through major Key Accounts and Trusted Retail Jewelers (TRJs). The TRJ group has shown substantial growth, and the company is introducing new products like the Spiritual Collection to meet growing demand.
- GEMONDO UK is enhancing its website to boost traffic and conversion rates while focusing on product sales through key channels such as Marketplaces like Wolf & Badger and the GEMONDO website.
Pranda expects the Omnichannel Distribution business to report an 11% increase in sales for the first nine months of 2024 compared to the same period last year, though slightly below the 10% target due to slower economic growth in the Thai market. With a strong focus on both production and omnichannel strategies, Pranda Jewelry remains well-positioned to achieve continued growth and strengthen its position as a global leader in the jewelry industry.