Reasons for Novaland’s Loss Plan this Year

Novaland Group (NVL) expects to incur losses this year with two business plans. Plan 1 anticipates a revenue of 13.411 trillion VND but a loss of 12 billion VND, while Plan 2 foresees a revenue of 10.453 trillion VND and a loss of 688 billion VND. The main reason affecting business results is the progress of legal processing of projects. In 2025, Novaland aims to expand the housing segment for low-income earners to create stable cash flow, although it will not yield high profits. The company has also decided not to pay dividends in 2024 and will use the undistributed profit to recover business operations. At the shareholders’ meeting, Novaland approved the plan to issue 350 million shares privately to raise capital, as well as a convertible international bond plan for debt restructuring. The company will focus on key goals such as legal clearance, cash flow optimization, and digital transformation.