In the first quarter of 2023, Novaland experienced a 15% increase in revenue, primarily due to the successful completion of key projects in Ho Chi Minh City and suburban areas. However, the company reported negative profits due to unfavorable exchange rate developments. The consolidated financial statements of No Va Real Estate Investment Group Joint Stock Company (Novaland – NVL) revealed that net revenue from sales and service provision exceeded 697 billion VND, marking a significant increase compared to the same period last year.
The increase in revenue was driven by several successful projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, and Lakeview City. Novaland achieved a gross profit of nearly 190 billion VND, equivalent to a gross profit margin of over 27%. However, financial revenue decreased by more than 30% to about 640 billion VND due to various factors such as increased expenses and unfavorable market conditions. The biggest deficit came from profit decrease in investment cooperation contracts by 29%.
Despite the revenue increase, Novaland reported an after-tax loss of nearly 601 billion VND during the first quarter of 2023. Exchange rate differences accounted for more than 452 billion VND of this loss due to unfavorable exchange rate developments in the first three months of the year compared to the previous year-end. This significant loss led Novaland’s share price down by more than 5%, causing concern among investors.
As of March 31st, Novaland’s total assets exceeded 236,480 billion VND with inventories totaling nearly 140,900 billion VND. The company has been actively engaging in financial restructuring activities such as securing an international convertible bond package worth $300 million USD. This move was intended to improve its liquidity position and reduce its debt burden following several large real estate investments made over the past few years.
Looking ahead, Novaland aims to achieve a consolidated revenue of nearly $8 billion and a profit after tax of nearly $3 billion this year. The company plans to issue shares worth over $11 billion USD to existing shareholders in the second quarter while focusing on completing unfinished projects for handover to customers. Projects like Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram are expected
