Novaland profit to fall by 90% to smallest in 8 years

By Phuong Dong   May 31, 2023 | 11:14 pm PT
Novaland profit to fall by 90% to smallest in 8 years
An artist's impression of a residential project developed by Novaland in Ho Chi Minh City. Photo courtesy of Novaland
Property developer Novaland expects profits to fall by 90% this year to VND214 billion (US$9 million), the lowest since 2015.

It targets revenues of VND9.531 trillion, a 15% decline, it said in documents it circulated ahead of its annual general meeting in late May.

It does not plan to pay dividends for last year and this year despite having undistributed profits of around VND13 trillion.

Last year it reported after-tax profits of VND2.181 trillion on revenues of VND11.15 trillion, down 37% and 26%.

At the end of last year it had assets of VND257.7 trillion and liabilities VND213 trillion.

PwC Vietnam, its auditor, has expressed doubts about Novaland’s ability to remain a going concern, but the company has claimed it has adequate working capital and can meet all its obligations in the next 12 months.

Novaland chairman Bui Thanh Nhon was quoted in the annual report as saying "The company is temporarily facing short-term financial and liquidity difficulties," but it would recover in the third quarter of this year thanks to its restructuring in late 2022.

According to the company’s management, it is also benefiting from the Government’s measures to eliminate legal obstacles faced by businesses, especially in the property sector.

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