VEF (VEFL SDB) Q1 2025 earnings summary

Executive summary

• NAV increased 1.2% quarter-over-quarter to USD 357.0 mln, driven by strong portfolio performance, currency tailwinds, and robust delivery, despite equity market headwinds.

• Over 90% of the portfolio is break-even or profitable, with a focus on sustainable growth and capitalizing on new opportunities, especially in top holdings like Creditas, Konfio, and Juspay.

• Three exits (BlackBuck IPO, Gringo sale, Juspay partial exit) in the past six months generated USD 32 mln in proceeds, validating NAV marks and strengthening liquidity.

Financial highlights

• NAV per share remained at USD 0.34; in SEK, NAV per share was 3.43, impacted by SEK depreciation against USD.

• Net result for 1Q25 was USD 3.9 mln, down from USD 5.3 mln in 1Q24; EPS was USD 0.00 (1Q24: 0.01).

• Cash position at quarter-end was USD 26.5 mln, with pro forma liquidity restored to USD 44.7 mln after exits.

• Portfolio companies are expected to deliver 35-40% year-on-year growth in key revenue and gross profit lines for 2025.

Outlook and guidance

• Management is confident in continued strong growth, with Creditas targeting 25%+ growth in key balance sheet lines for 2025.

• Short-term capital allocation will prioritize balance sheet deleveraging and share buybacks at a deep discount to NAV.

• More exits and opportunistic realizations are targeted for 2025-2026, supporting liquidity and potential new investments.