In the first quarter of 2023, Novaland experienced a 15% increase in revenue, primarily due to the successful handover of key projects in Ho Chi Minh City and suburban areas. However, financial losses were reported due to unfavorable exchange rate developments during the same period. The company’s consolidated financial statements 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 growth in revenue was driven by projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, and Lakeview City. Despite achieving gross profits of nearly 190 billion VND and a gross profit margin of over 27%, financial revenue decreased by more than 30% to about 640 billion VND. 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, representing a significant increase from the same period in 2023. Exchange rate differences accounted for more than 452 billion VND of the loss, mainly due to unfavorable exchange rate developments during the first three months of the year compared to the previous year-end.
As of March end, 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. Looking ahead, Novaland aims to achieve consolidated revenues of nearly $85 billion and a profit after tax of nearly $38 billion this year. The company plans to issue shares worth over $11.7 billion to existing shareholders in Q2 and focus on completing unfinished projects for handover to customers. Projects like Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram and housing projects in HCM city are expected to drive revenue growth in coming months potentially reaching a total of nearly $5bn units delivered this year.