After two quarters of huge losses, Novaland reported a profit of nearly 140 billion VND in the third quarter, although still 42% lower than the same period last year.
According to the newly released consolidated financial report, Novaland Group (NVL) recorded about 136,7 billion VND in profit after tax. This is the first quarter that this company has returned to profit after the first two quarters of the year operating at a loss with annual sales profit of 1.094 billion VND. However, compared to the third quarter of 2022, this profit is still 42% lower.
The management board explained that due to the general difficult situation of the real estate market, revenue decreased by 67% over the same period last year, to VND 1.073 billion. But if we consider this year, this is the quarter with the highest revenue.
Previously, Novaland released a business plan for the last 6 months of the year with the goal of being profitable from the third quarter. However, the expected profit is 310 billion VND, more than double the actual number.
In the first 9 months of the year, Novaland's total consolidated revenue reached more than 2.730 billion VND and recorded a loss of 958 billion VND. During the same period, this business had about 7.900 billion VND in revenue and a positive profit of more than 2.050 billion VND. NVL has just completed 29% of its revenue target and is still quite far from its profit target of 214 billion VND this year.
From the beginning of the year until now, Novaland has recorded revenue from handing over projects such as NovaWorld Phan Thiet (Binh Thuan), NovaWorld Ho Tram (Ba Ria - Vung Tau), Aqua City (Dong Nai), Palm City, Saigon Royal (HCMC) and other central real estate.
At Aqua City, after being cleared by the Government's Working Group, the project restarted at the end of June and was allowed to sell some houses from the beginning of August. NovaWorld Ho Tram is being directed to speed up procedures. juridical. NovaWorld Phan Thiet completed the detailed planning adjustment of 6/8 for the entire item and kept the investment policy, moving towards paying land rent once instead of paying annually.
A completed corner of the NovaWorld Phan Thiet project (Binh Thuan). Image: NVL
Recently, this business has focused on debt restructuring. By the end of the third quarter, NVL's total liabilities decreased slightly by 3,5% to more than 205.460 billion VND. Financial debt alone decreased by nearly 10%, to more than 58.900 billion VND. In the third quarter, this group had 2.230 billion VND in financial revenue, mainly coming from selling assets to restructure debt.
Novaland also promoted the bond extension agreement. In September alone, this enterprise and its subsidiary postponed the maturity of three batches of bonds with a total value of about 9 billion VND. NVL also plans to buy back more than 1.145 billion VND of bonds before maturity, equivalent to more than 2.300% of the outstanding amount of two batches of bonds issued in mid-40.
The third quarter financial report also shows that this enterprise has real estate inventory of nearly 137.600 billion VND. Of which, the value of land funds and projects under construction accounts for nearly 93%. The remainder is completed real estate and real estate goods, completed real estate waiting to be handed over to customers. Meanwhile, prepayments from buyers, which reflect the ability to grow revenue and profits of real estate businesses, increased by 11% to nearly VND 17.800 billion.
On the stock market, NVL shares have been trading around 13.500 VND per share for about a week, down more than 60% in market price compared to this year's peak. This code was placed on warning by the Ho Chi Minh City Stock Exchange (HoSE) in mid-April because of the delay in submitting audited financial statements for 4. Recently, Novaland proposed to remove NVL shares from the warning because information disclosure has been fixed. The company also did not violate regulations for 2022 consecutive months from the date of warning from HoSE.
Siddhartha
