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Novaland sees significant increase in revenue in Q3

Released at: 14:13, 04/11/2019

Novaland sees significant increase in revenue in Q3

Photo: Novaland

Vietnamese real estate developer releases Q3 business results.

by Khanh Chi

The Novaland Investment Group Corporation (HSX: NVL) has announced its consolidated financial results for the third quarter of 2019.

The company maintained its stable growth and recorded a significant increase in consolidated net revenue from the sales of goods and rendering of services, by 42 per cent to $412.3 million in the first nine months year-on-year.

The total handed-over units in the period improved significantly, by 70 per cent to 3,269 units compared to 1,923 units in the same period last year. Strong contributors were major projects such as The Sun Avenue, Sunrise Riverside, Richstar, Saigon Royal, Orchard Parkview, Newton Residence, and Victoria Village. The cumulative total handed over units has reached 17,198 since completed projects began the hand over process.

In the first nine months, gross profit increased by 30 per cent to $115.9 million year-on-year. With regard to sales, total presale value reached approximately $1.25 billion, up 6.5-fold year-on-year.

The percentage increase in gross profit was not commensurate with the percentage increase in net revenue mainly due to lower gross profit margins of projects that booked revenues in the period. Therefore, the company’s gross margin for the first nine months of 2019 slipped 28 per cent year-on-year.

As at September 30, unbilled contractual sales reached $2.46 billion, which are expected to be booked in upcoming years. The financial performance of the company also remained stable, with a significant decrease in debt/equity ratio to 1.17 from 1.36 at the beginning of the year.

Year-to-date net profit after tax (NPAT) decreased 24 per cent to $46.35 million, primarily due to gains from a revaluation of NAV of the company’s interest in subsidiaries compared to the same period last year, relating to projects such as The Grand Manhattan, NovaHills Mui Ne, NovaWorld Ho Tram, and other projects in Mui Ne and Cam Ranh. Accordingly, the company posted a net profit margin of 11 per cent for the nine-month period ended September.

With the participation of Deputy Prime Minister Truong Hoa Binh, Novaland’s Binh Thuan 2019 Investment Promotion Conference was held in September and attracted more than 400 national firms and global corporations.

On this occasion, Novaland formed new partnerships with PAG, The Professional Golfers’ Association of America, IMG, the International Management Group, and Accor, the French multinational hospitality group. Through collaboration with international experts in tourism promotion, Novaland aims to build a tourism complex with world class amenities, along with bringing new standards in golf academy operations and junior golf programs to Vietnam. In the coming years, the company looks forward to hosting champion golfers.

Novaland received funding from the Deutsche Investitions - und Entwicklungsgesellschaft (DEG), with $20 million coming for the Azerai Can Tho Resort project. The Mekong Delta is one of the regions that has been impacted by climate change over the years.

To address this issue, Novaland has been working closely with the Boston Consulting Group and DEG to strategize a sustainable development plan. Environmental experts from DEG provided Novaland with professional training programs to achieve international standards for natural preservation.

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