In This Article:
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NAV (Net Asset Value): $353 million at year-end, down 26% quarter-on-quarter in USD terms, and nearly 20% in SEK.
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Creditas Origination Growth: 17% quarter-on-quarter, nearly 50% year-on-year.
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Creditas Valuation Decline: 44% quarter-on-quarter due to macro factors and peer multiples contraction.
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Transfergo Valuation Decline: 32% decline reflecting peer multiples contraction and weaker FX.
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Gringo Valuation Decline: 11% decline quarter-on-quarter due to FX impact.
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Just Pay Growth: 6.5% increase in valuation despite a 6% decline in comps and 2% currency depreciation.
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Nivo Growth: 2.6% increase quarter-on-quarter with stable comps and 16% company growth.
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Portfolio Performance: 35% to 40% expected revenue and gross profit growth for the next 12 months.
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Exits: BlackBuck IPO and Gringo sale, bringing in $17.2 million in cash and $5.2 million in listed assets.
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Cash Position: Pro forma liquidity position of $33 million post-exits.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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VEF AB (FRA:0TX) achieved two successful exits with BlackBuck's IPO in India and the sale of Gringo, bringing in $22.4 million in total.
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The company expects 35% to 40% top-line and profit growth for the next year, indicating a strong growth trajectory.
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Creditas, a significant portfolio company, showed a 17% quarter-on-quarter origination growth, nearly 50% year-on-year, driving profitability.
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The portfolio is largely break-even and self-sustaining, with over 90% of companies not dependent on fresh capital for growth.
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VEF AB (FRA:0TX) is focusing on strengthening its balance sheet, with plans to use capital for share buybacks and debt reduction, enhancing shareholder value.
Negative Points
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The company's NAV decreased by 26% quarter-on-quarter in dollar terms, primarily due to macroeconomic factors in Brazil.
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Creditas experienced a 44% decline in valuation quarter-on-quarter, driven by macro factors and peer multiple contractions.
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Transfergo's valuation saw a 32% decline, reflecting weaker FX and peer multiple contractions.
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The Brazilian real depreciated by 12% in the quarter, negatively impacting valuations.
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The NAV per share in SEK decreased from SEK4.26 to SEK3.73, reflecting the challenges faced in Q4.
Q & A Highlights
Q: Can you discuss the macro risks you see, particularly in Brazil, and how they might impact your operations? A: David Francis Nangle, CEO: We are aware of the macro implications in Brazil, including currency and peer valuations affecting our companies. Brazil experiences periodic economic fluctuations, but our companies are built to withstand these cycles. Creditas, for example, has shown no change in its 2025 plans, and while interest rates have fluctuated, the impact on margins has been manageable. We remain vigilant but confident in our portfolio's resilience.