No Va Real Estate Investment Group (Novaland - NVL) recently released its consolidated financial statement, showing a 22% revenue increase to over 1,936 billion VND. After deducting cost of goods sold, the company's gross profit reached over 691 billion VND, a significant improvement from the 2,593 billion VND loss in the same period last year.

NVL also generated nearly 512 billion VND in financial activities revenue, a 13% decrease primarily due to reduced interest from joint venture contracts. Other income for the period reached nearly 262 billion VND, mainly from contract violation penalties, a stark contrast to the 1,638 billion VND loss in Q2 2024.

Meanwhile, operating expenses remain high. Selling expenses rose 76% to nearly 155 billion VND as the company ramped up sales activities. Management expenses decreased 16% to over 314 billion VND.

Despite cutting financial expenses by more than one-half, NVL still incurred over 1,135 billion VND in costs. The largest portion was interest expenses from joint venture contracts, while interest expenses on loans were only over 33 billion VND.

Overall, Novaland reported a post-tax loss of nearly 190 billion VND in Q2. This marks the second consecutive quarter of losses, though the figure is a 35-fold decrease from the record loss in the same period last year.

For the first 6 months of the year, NVL recorded nearly 3,715 billion VND in revenue, a nearly 63% increase. Net sales revenue reached almost 3,423 billion VND, an 81% year-on-year increase, driven by handovers at projects like NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Sunrise Riverside, and Palm City.

The post-tax loss improved from over 7,327 billion VND to approximately 666 billion VND. The company projects a full-year loss between 12 billion VND and 688 billion VND, depending on the progress of resolving legal obstacles.

As of the end of June, NVL's total assets reached over 238,619 billion VND. Inventory stood at 150,533 billion VND, with land funds and projects under construction accounting for nearly 95%. The remainder comprises completed properties, real estate products, and completed properties awaiting handover to customers.

Novaland's total outstanding debt is over 61,800 billion VND, with approximately 32,300 billion VND due within the next 12 months. Management acknowledges the pressure from various sources, especially the ongoing cash flow difficulties. With a loss of hundreds of billions of VND in the first half of 2025, the company is unable to fully settle outstanding debts from 2022. The group is exploring new restructuring options for these debts, aiming for a resolution between late 2026 and early 2027.

Novaland will soon hold an extraordinary general meeting to propose a private placement of shares to swap debt and change members of the Board of Directors.

Novaland's stock (NVL) is currently trading at around 17,300 VND, up nearly 70% since the beginning of the year. Compared to its lowest point in April, the stock has doubled in value.

At the annual general meeting in late April, Chairman Bui Thanh Nhon urged shareholders to have faith in Novaland stock as a long-term investment. He stated that the company has overcome the most challenging period, and this year marks a turning point for its recovery.

Tat Dat - Phuong Dong