Novaland explains why profit increased suddenly by more than 2,000% compared to the same period

(NLDO)- Novaland's profit in the third quarter of 2024 reached more than VND 2,950 billion, an increase of 2,000% over the same period, net revenue from sales reached nearly VND 3,739 billion, an increase of 64%.

No Va Real Estate Joint Stock Company (Novaland, stock code: NVL) has just announced its financial report for the third quarter of 2024. Accordingly, Novaland recorded a total consolidated revenue of VND 2,010 billion.

Profit after tax recorded nearly 2,950 billion VND, an increase of more than 2,000% compared to 136.7 billion VND in the same period last year.

NovaWorld project has been handed over

According to Novaland's explanation, this growth is mainly due to a sharp increase in financial revenue. Specifically, there is a large amount of financial revenue that the auditor adjusted down during the first 6-month review period of 2024, but by the third quarter of 2024, it had been fully realized and recorded. Novaland affirmed that this profit growth is reasonable and well-founded.

In the first 9 months of the year, Novaland's total consolidated revenue from sales and service provision reached VND4,295 billion. Revenue mainly came from the handover of projects: NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City...

However, in the first 9 months, Novaland still recorded a loss of VND 4,377 billion. Mainly due to provisions for the 2024 semi-annual reporting period.

As of September 30, 2024, Novaland's total assets reached over VND 232,029 billion. Inventory was VND 145,006 billion. Of which, the value of land fund and projects under construction accounted for 94.1%, the rest was real estate products.

According to Novaland, the Military Commercial Joint Stock Bank (MB) has committed to disbursing a financial package of VND1,100 billion to synchronously deploy a subdivision of the Aqua City project, bringing the total financial packages that have been committed to granting credit limits for the entire project to nearly VND3,250 billion. It is expected that this year, Aqua City will be approved to adjust the 1/500 planning.

For the NovaWorld Phan Thiet project, the company has restarted construction to complete the Festival Town infrastructure.

In Ho Chi Minh City, the Sunrise Riverside project (Nha Be) is handing over and giving pink books to residents.

The Grand Manhattan project (District 1) has topped out towers A2 and A3 and is completing the remaining towers for expected handover from the third quarter of 2025.

At the Victoria Village project (Thu Duc City), pink books have been awarded to low-rise housing products, 4 towers in the high-rise area are continuing to be built and completed, expected to be handed over from the end of the fourth quarter of 2025.

NVL stock price on October 30 increased quite strongly, nearly 4%, to nearly 11,000 VND/share. Mr. Bui Thanh Nhon is currently the Chairman of the Board of Directors of Novaland.

Source: https://nld.com.vn/novaland-bat-ngo-bao-lai-tang-toi-2000-196241030144621219.htm