Kinnevik (KINV) Q1 2025 earnings summary

Executive summary

• NAV declined 8% in SEK (2% in constant currency) to SEK 36.2bn (SEK 131/share) in Q1 2025, mainly due to currency headwinds, market volatility, and multiple contraction, despite strong operational progress.

• Core companies delivered over 40% revenue growth and improved EBITDA margins by 5 percentage points year-over-year.

• Portfolio refocused by divesting three non-core financial services investments for EUR 65.5m, with capital reallocated to high-conviction sectors.

• Net cash position of SEK 10.5bn, with 85% of capital in profitable or near break-even companies and limited follow-on investment needs.

• Board changes proposed, including Christina Stenbeck as chairman and several new members, enhancing strategic expertise.

Financial highlights

• NAV down 8% in SEK, 2% in constant currency, mainly due to SEK appreciation, public market declines, and multiple contraction.

• SEK 800m invested in Q1, mainly in core companies and select ventures; net cash position of SEK 10.5bn at quarter-end.

• Divestment of non-core assets at a mid-single-digit discount to Q4 2024 NAV; negative SEK 397m NAV impact in Q1 from this transaction.

• Public investments down 19% to SEK 1.0bn; private investments down 10% to SEK 25.6bn.

• Negative SEK 2.2bn currency effect impacted NAV.

Outlook and guidance

• Core companies expected to maintain 35-45% annual revenue growth and margin improvements through 2025-2026.

• Continued focus on disciplined capital allocation, portfolio concentration, and opportunistic investments.

• Acknowledgement of macroeconomic and global trade uncertainty, with potential for negative impact if slowdown materializes.