Novaland expects lowest profit in 8 years

No Va Real Estate Investment Group (Novaland) set a target of after-tax profit this year to decrease by 90% compared to last year, reaching VND214 billion, the lowest level since 2015.

This information was just announced by Novaland in the annual shareholder meeting documents at the end of June in Phan Thiet, Binh Thuan.

In addition to profit, Novaland also set a revenue target of 15% lower than last year, expected to reach VND9,531 billion. The company said it will not pay dividends for last year or this year, although undistributed profit is about VND13,000 billion.

In 2022, Novaland had revenue of VND 11,150 billion and profit after tax of VND 2,181 billion, down nearly 26% and 37% respectively compared to the same period in 2021. At the end of the year, the company's total assets were more than VND 257,700 billion and liabilities were over VND 213,000 billion, up VND 56,000 billion and VND 53,000 billion respectively.

PwC Vietnam - the financial statement auditor - said that the assumption of solvency, debt restructuring and measures to generate sufficient cash flow to finance business operations has led to significant doubts about the group's ability to continue as a going concern. However, Novaland affirmed that it has sufficient working capital for business operations and is able to meet obligations due in the next 12 months (from April this year).

Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Novaland, wrote in the annual report that "the company is temporarily facing short-term financial and liquidity difficulties" but he is confident that production and business activities will soon recover in the third quarter of this year thanks to the restructuring strategy launched at the end of last year.

According to Novaland's board of directors, in addition to the comprehensive restructuring that is showing effectiveness, the company also sees many bright spots from the Government and ministries continuously implementing support measures and issuing policies to remove legal obstacles, helping businesses overcome financial difficulties.

Orient

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