Novaland reports highest profit in three years.

Strong financial income helped Novaland achieve a net profit after tax of over VND 1,600 billion, the highest since Q4/2020.

According to the Q4 2023 financial report, Novaland Investment Group Joint Stock Company (Novaland - NVL) recorded net revenue of nearly VND 2,028 billion, a decrease of 37%. Meanwhile, financial activities showed positive results, bringing in double the revenue to approximately VND 1,825 billion. Profit from investment cooperation contracts alone reached over VND 1,000 billion, with the remainder mainly coming from securities trading and loans.

During the period, Novaland saved 2.7 times its financial costs. This was due to restructuring activities. Specifically, in mid-December 2023, the company reached several agreements related to the restructuring of the terms of its $300 million international bond package. The management stated that pressure on Novaland would decrease amidst the overall difficulties, creating favorable conditions for the company to stabilize and recover quickly.

In total, Novaland's after-tax profit exceeded VND 1,642 billion, an increase of nearly 13 times compared to the same period last year. This is the highest profit level since the fourth quarter of 2020.

For the full year, NVL recorded nearly VND 4,759 billion in revenue and nearly VND 685 billion in after-tax profit, representing decreases of 57% and 69% respectively compared to 2022. A positive aspect was sales activity, which accounted for the majority of business results with nearly VND 4,090 billion in revenue, generated from the handover of products at NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City, Saigon Royal, and other projects.

Compared to the full-year plan, the company only achieved half of its revenue target due to a decline in real estate transfer activities. However, after-tax profit exceeded the target by 3.2 times, mainly due to debt restructuring, cost optimization, and financial activities during the restructuring phase.

The Victoria Village project (Ho Chi Minh City) has just completed the topping-out ceremony for tower 3, and construction is underway on the other towers. Photo: NVL

As of the end of 2023, NVL's total assets reached nearly VND 241,400 billion, a decrease of 6.3% compared to the same period. Of this, inventory amounted to nearly VND 138,600 billion, with over 93% being the value of land and projects under construction. Inventory of completed real estate and real estate goods awaiting handover to customers accounted for a very small proportion.

Over the past year, Novaland and the Novagroup ecosystem have focused on debt restructuring. They actively negotiated to extend, change interest rates, or swap debt for other assets, as well as seeking to raise capital to fulfill their financial obligations.

Mr. Bui Thanh Nhon's company is also reorganizing, prioritizing projects nearing completion to deliver products to customers and selecting projects with high liquidity potential to expedite legal procedures in order to catch up with the recovery of the real estate market. At a meeting with the Prime Minister in mid-November 2023, Chief Financial Officer Duong Van Bac stated that the group had passed its most difficult period and had completed 80% of its restructuring.

This year, Novaland continues to complete its debt restructuring, focusing on coordinating with local authorities and agencies to resolve legal obstacles at its projects in order to continue construction activities. Simultaneously, the company is maintaining the construction pace of projects where legal issues have been resolved to ensure the handover of homes to customers.

Currently, this developer has four major large-scale project clusters in Ho Chi Minh City, Dong Nai , Ba Ria - Vung Tau, and Binh Thuan. Novaland reported that in the last six months of last year, their urban areas welcomed more than 3 million visitors.

Tat Dat

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