Key events during the quarter
- 2Q24 USD NAV decreased 2% QoQ. Portfolio performance remained strong with continued robust company revenue and gross profit development YTD. Local currency weakness (BRL -10.4% and MXN -9.8% vs. USD) was the key counter-acting valuation headwind in the quarter.
- Creditas announced their first profitable quarter, a key milestone, off the back of USD 90 mln revenue print for 1Q24. Profitable growth throughout 2024 becomes the achievable target, while management continues to communicate its IPO intentions at investor events.
- Markets continued to improve through 1H24 as confidence, risk appetite and capital flows gradually returned. These trends, combined with ongoing IR and PR efforts, helped to reduce our traded discount to NAV by 10.3% points through 1H24 - a good start and positive trend, but plenty of work to be done on this front.
Net asset value
- NAV of VEF's portfolio as at 1H24 is USD 436.6 mln (YE23 442.2). NAV per share has decreased by 1% to USD 0.42 (YE23: 0.42) per share during 1H24.
- In SEK, NAV equals 4,632 mln (YE23: 4,441). NAV per share has increased by 4% to SEK 4.45 (YE23: 4.26) per share during 1H24.
- Cash position, including liquidity investments, was USD 15.8 mln (YE23: 21.6) at the end of 1H24.
Financial result
- Net result for 2Q24 was USD -11.2 mln (2Q23: 68.7). Earnings per share were USD -0.01 (2Q23: 0.07).
- Net result for 1H24 was USD -5.9 mln (1H23: 97.2). Earnings per share were USD -0.01 (1H23: 0.09).
VEF CEO, David Nangle, comments:
"If there is one message we want investors to take from our 2Q24 report, it is that we are confident with the quality of the companies that dominate our portfolio and NAV. Strengthening our balance sheet and getting back to investing remains the key focus for 2024, and we feel we are trending nicely towards achieving these goals. Our confidence in our ability to strengthen our balance sheet is a function of the quality and performance of our portfolio companies, coupled with improving markets."
| Dec 31, 2022 | Dec 31, 2023 | Jun 30, 2024 | |
| Net asset value (USD mln) | 381.8 | 442.2 | 436.6 |
| Net asset value (SEK mln) | 3,981 | 4,441 | 4,632 |
| Net asset value per share (USD) | 0.37 | 0.42 | 0.42 |
| Net asset value per share (SEK) | 3.82 | 4.26 | 4.45 |
| VEF AB (publ) share price (SEK) | 2.45 | 1.84 | 2.42 |
Events after the end of the period
No significant events after the end of the period.
Visit VEF's IR page for our financial reports and other information: vef.vc/investors
Results webcast will be held at 15:00 CEST (09:00 a.m. ET) Wednesday July 17, 2024 where Dave Nangle, Managing Director of VEF will comment on the report and the latest developments.
To join the live conference and be able to ask questions, please use the below link for registration:
https://register.vevent.com/register/BI511849135e52477daa5fbf033d4fe529
To view the live interactive presentation in listen-only mode, please log on to:
https://edge.media-server.com/mmc/p/skm8dvsk
For further information please contact:
Kim Ståhl, CFO: +46 (0) 8-545 015 50
About Us
VEF AB (publ) is an investment company whose Common Shares are listed in Sweden. We invest in growth stage private fintech companies, take minority stakes and are active investors with board representation in our portfolio companies, always looking to back the best entrepreneurs in each market. We focus on scale emerging markets and invest across all areas of financial services inclusive of payments, credit, mobile money and wealth advisors. VEF trades in Sweden on Nasdaq Stockholm's Main Market under the ticker VEFAB. For more information on VEF, please visit http://www.vef.vc.
This information is information that VEF AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-07-17 08:00 CEST.
