Novaland Sees 15% Increase in Revenue but Suffers Exchange Rate Losses

In the first quarter of this year, Novaland experienced a 15% increase in revenue due to the successful handover of key projects in Ho Chi Minh City and suburban areas. However, profits were negative due to exchange rate differences. This information is reflected in the consolidated financial statements of No Va Real Estate Investment Group Joint Stock Company (Novaland – NVL).

The net revenue from sales and service provision exceeded 697 billion VND, up over 15% compared to the same period last year. The majority of this increase came from the successful handover of projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, and Lakeview City. Novaland’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 the previous year, with over 452 billion VND of the loss attributed to exchange rate differences.

As of March end, Novaland’s total assets were over 236,480 billion VND with inventories totaling 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 including an international convertible bond package worth $300 million USD.

In an announcement made by its Chairman of Board Directors