Nova Consumer suffers first loss after IPO

Business

Thursday, May 4, 2023 14:03 (GMT+7)
27 minutes ago

Due to increased financial costs and corporate income tax, in the first 3 months of the year, Nova Consumer recorded a loss after tax of 7.6 billion VND while in the same period last year it made a profit of more than 13 billion VND.

In the recently released first quarter financial report, Nova Consumer Group Joint Stock Company (NCG) recorded unsatisfactory business results.

In the first 3 months of the year, NovaGroup's member company earned VND1,111 billion in net revenue, up 16% over the same period. However, cost of goods sold increased by 17% to VND1,006 billion, causing gross profit to increase slightly by 3% to VND105 billion .

In addition, the company recorded a 2.2-fold increase in financial expenses to more than VND34 billion . Sales expenses decreased by 14% over the same period to VND41 billion , while business management expenses increased by 13% to VND44 billion .

As a result, Nova Consumer recorded a loss after tax of VND 7.6 billion while in the same period last year it made a profit of more than VND 13 billion . According to the explanation of the board of directors, the company's loss was due to an increase in financial expenses and corporate income tax expenses compared to the same period. This is the first time Nova Consumer has reported a loss since the initial public offering of 10.9 million shares in the first quarter of 2022.

In 2023, the company plans to achieve net revenue of VND 5,625 billion , an increase of 15.2% compared to the results achieved last year. However, after-tax profit is expected to decrease sharply, by more than 70% to VND 88 billion . Thus, at the end of the first quarter, this company only completed 19% of the revenue target and lost instead of the expected profit of VND 88 billion .

NOVA CONSUMER BUSINESS RESULTS
Corporate Financial Statements
Label		Quarter I/2021	Quarter II	Quarter III	Quarter IV	Quarter I/2022	Quarter II	Quarter III	Quarter IV	Quarter I/2023
Net revenue	billion dong	889	909	865	839	959	1134	1356	1430	1111
Profit after tax		736	104	164.7	-24.5	13.2	171.7	64	48.8	-7.6

At the end of the first quarter, Nova Consumer's total assets decreased by 91 billion compared to the beginning of the year to 5,056 billion VND , mostly short-term receivables of 1,426 billion VND (accounting for more than 28%). Cash and cash equivalents reached 150 billion VND . In addition, Nova Consumer's debt reached 1,319 billion VND , accounting for 62% of total liabilities and mainly short-term debt.

Nova Consumer is one of the core members of Nova Group. The company is expected to become the next corporation in this ecosystem to be listed on the stock exchange after Novaland (code: NVL).

The company started out as a provider of livestock solutions, including veterinary medicine, vaccines, animal feed, and breeding animals. It plans to expand into food production and distribution in 2020 to complete the value chain from farm to table (3F model).

The group's leaders said they are still completing documents to submit for listing at the Ho Chi Minh City Stock Exchange (HoSE) or to register for stock trading on UPCoM.

In 2022, this agricultural and consumer goods company submitted an application for listing on HoSE according to the resolution of the General Meeting of Shareholders on May 31, 2022. However, on December 9, 2022, Nova Consumer received a notice from HoSE to stop considering the listing application due to failure to supplement additional documents within the deadline.

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Thanh Thuong

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