Novaland, a prominent real estate investment company in Vietnam, experienced a 15% increase in revenue during the first quarter of the year. This was due to the successful handover of key projects in Ho Chi Minh City and surrounding areas. Despite this increase, financial revenue decreased by over 30%, with losses attributed to exchange rate differences.
Novaland’s net revenue from sales and services exceeded 697 billion VND, up from the previous year. The majority of this increase came from the successful 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 this growth in revenue, financial performance remained negative due to exchange rate differences. Financial revenue decreased by more than 30% to about 640 billion VND. The biggest deficit came from profits from investment cooperation contracts, which decreased by 29%. Novaland reported an after-tax loss of nearly 601 billion VND, a significant increase compared to the same period in the previous year. Over 452 billion VND of this loss was attributed to exchange rate differences.
As of March end, Novaland’s total assets were over 236,480 billion VND. Inventories totaled nearly 140,900 billion VND. The majority of inventory value comes from land funds and projects under construction. Recently, the company has focused on financial restructuring activities such as an international convertible bond package worth $300 million USD and completing domestic and foreign debt restructuring while maintaining a balanced assets for debt ratio.
Novaland plans to issue shares worth more than 11,700 billion VND to existing shareholders in Q2 with an expected offering time. The capital raised will be used to complete unfinished projects and deliver them to customers. For the current year, Novaland aims to achieve consolidated revenue of nearly $89 million and a profit after tax of nearly $34 million – significant increases compared to the same period last year
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