Novaland’s First Quarter Financial Report: Revenue Increases, Losses Mount Due to Exchange Rate Fluctuations and Investment Contract Deficits

In the first quarter of 2023, Novaland experienced a 15% increase in revenue, largely due to the successful completion of key projects in Ho Chi Minh City and suburban areas. 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 this, the company reported an after-tax loss of nearly 601 billion VND, representing a 46.5% increase from the same period in 2022.

The increase in revenue was primarily driven by the successful 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%. The consolidated financial statements revealed that net revenue from sales and service provision exceeded 697 billion VND.

However, exchange rate differences accounted for more than 452 billion VND of the loss. Unfavorable exchange rate developments in the first three months of the year compared to the previous year-end were mainly responsible for this loss. As of March 31st, Novaland’s total assets exceeded 236,480 billion VND. The company has been actively engaging in financial restructuring activities and plans to issue shares worth more than