Novaland Reports 15% Revenue Increase, Yet Faces Financial Challenges Amid Unfavorable Exchange Rates

Novaland experienced a 15% increase in revenue in the first quarter of the year, largely due to the successful handover of key projects in Ho Chi Minh City and suburban areas. However, despite the revenue growth, the company reported negative profits due to unfavorable exchange rate developments.

The financial statements of No Va Real Estate Investment Group Joint Stock Company (Novaland – NVL) showed that net revenue from sales and service provision exceeded 697 billion VND, marking an impressive increase compared to the same period last year. The increase in revenue was primarily driven by projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, and Lakeview City.

However, 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 this setback, Novaland achieved a gross profit of nearly 190 billion VND, equivalent to a gross profit margin of over 27%.

Looking forward, Novaland aims to achieve a consolidated revenue of nearly 32,600 billion VND and a profit after tax of nearly 1,080 billion VND this year. To achieve these goals, the company plans to issue shares worth more than 11,700 billion VND to existing shareholders in the second quarter and focus on completing unfinished projects to hand over to customers. Projects like Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram, and housing projects in Ho Chi Minh City are expected to drive revenue growth in the coming months potentially reaching a total of nearly 5