In the first quarter of the year, Novaland saw a 15% increase in revenue due to the handover of key projects in Ho Chi Minh City and suburban areas. However, profits were negative because of exchange rate differences. This information is reflected in the consolidated financial statements of No Va Real Estate Investment Group Joint Stock Company (Novaland – NVL).
Net revenue from sales and service provision exceeded 697 billion VND, up over 15% compared to the same period last year. This increase mainly came from the handover at projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, and Lakeview City. The company’s gross profit was nearly 190 billion, with a gross profit margin of over 27%.
Despite the increase in revenue, financial revenue decreased by more than 30% to about 640 billion VND. The biggest deficit came from profit from investment cooperation contracts, which decreased by 29%. Novaland reported an after-tax loss of nearly 601 billion VND, a 46.5% increase compared to the same period in 2023, with over 452 billion VND of the loss attributed to exchange rate differences.
As of the end of March, Novaland’s total assets were over 236,480 billion VND, with inventories totaling nearly 140,900 billion VND. The majority of the inventory value comes from land funds and projects under construction. Recently, the company has focused on financial restructuring activities, including an international convertible bond package worth 300 million USD.
Novaland’s Chairman of the Board of Directors announced that the company has completed the restructuring of domestic and foreign debts and bonds, maintaining a balanced assets for debt ratio. The Board of Directors also approved a plan to issue shares worth more than 11,700 billion VND to existing shareholders, with an expected offering time in the second quarter. The capital raised will be used to complete unfinished projects and hand them over to customers.
This year, Novaland aims to achieve consolidated revenue of nearly 32,600 billion VND and a profit after tax of nearly 1,080 billion. This would represent a significant increase compared to the same period in the previous year. Key projects generating revenue in the coming months are expected to be Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram, and housing projects in Ho Chi Minh City, with a total of nearly 5,200 units set to be delivered.