Property giant Novaland eyes Q3 recovery: chairman

With determination and concerted efforts, leading property developer Novaland will see business activities recover in the third quarter of 2023, chairman Bui Thanh Nhon said Thursday.

Statistics released at the company’s annual general meeting of shareholders (AGM) show that Novaland earned revenues of VND11.15 trillion ($474.5 million) in 2022, a year-on-year decrease of 25%, fulfilling over 30% of the set target.

The Ho Chi Minh City-based developer’s after-tax profits fell 36.85% year-on-year to VND2.18 trillion ($92.76 million), equalling about one-third of its 2022 plan.

The AGM approved revenue and after-tax profit targets of VND9.53 trillion ($405.78 million) and post-tax profit of VND214 billion ($9.11 million) in 2023, down 14.5% and 90% year-on-year, respectively.

Amid numerous difficulties and challenges, Novaland has attempted comprehensive restructuring with specific actions including selling assets to repay debts, turning debt into shares and assets, and controlling capital sources, Nhon said.

He said Novaland will not pay dividends in 2022 and 2023 so as to spend capital on core business activities.

The chairman reiterated that the company's top priorities in restructuring are to reschedule debt repayment deadlines; solve problems and fulfil commitments to customers; create new cash flows to restore production and business activities; and complete construction and handover of products to customers in line with commitments.

“The group is ready to accept any losses and deal with all difficulties and obstacles, and vows to make efforts to compensate customers and shareholders,” he said.

In the first quarter of this year, Novaland reported a net revenue of VND604 billion ($25.7 million), down 70% year-on-year and the lowest since it listed on the stock exchange at the end of 2016.

The company posted a loss of VND410 billion ($17.45 million) in the period, its first quarterly loss since listing on the local bourse.

Novaland is listed on the Ho Chi Minh Stock Exchange (HoSE) as NVL, which closed Thursday at VND14,650 ($0.62) per share.