Novaland Reports 15% Revenue Increase, but Suffers Net Loss due to Exchange Rate Differences

In the first quarter of 2023, Novaland reported a 15% increase in revenue, largely due to the handover of key projects in Ho Chi Minh City and suburban areas. Despite the revenue increase, the company reported negative profits due to exchange rate differences. The consolidated financial statements of No Va Real Estate Investment Group Joint Stock Company (Novaland – NVL) revealed that net revenue from sales and service provision exceeded 697 billion VND, marking a more than 15% increase compared to the same period last year.

The increase in revenue was primarily driven by the handover of projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, and Lakeview City. Novaland achieved a gross profit of nearly 190 billion VND, equivalent to a gross profit margin of over 27%. However, financial revenue decreased by more than 30% to about 640 billion VND, with the biggest deficit coming 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 46.5% 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 in the first three months of the year compared to the previous year-end.

As of March 31st