VEF (VEFL SDB) Q4 2024 earnings summary

Executive summary

• NAV ended Q4 2024 at USD 353 million, down 26% quarter-on-quarter and 20% year-on-year, mainly due to Brazil macroeconomic and currency headwinds impacting valuations.

• Over 90% of the portfolio is break-even or profitable, with a renewed focus on growth and 35%-40% top-line and profit growth expected in 2025.

• Two significant exits completed: BlackBuck IPO in India (partial exit, USD 2 million realized, USD 5.2 million retained) and Gringo sale in Brazil (full exit, USD 15.2 million proceeds), enhancing liquidity.

Financial highlights

• Q4 NAV per share was SEK 3.73 (down from 4.26), and USD 0.34 (down from 0.42); cash position at year-end was USD 12.8 million.

• Net result for FY24 was USD -89.9 million (FY23: 60.1 million); 4Q24 net result was USD -122.2 million (4Q23: 19.4 million); EPS for FY24 was USD -0.09.

• Portfolio performance contributed USD 77 million in positive NAV for 2024, but USD 150 million in negative impact from comp multiples and FX, especially the Brazilian real and Mexican peso.

• No new investments in FY24; net divestments of USD 1.9 million, mainly from BlackBuck IPO.

Outlook and guidance

• Portfolio forecasted to deliver 35% revenue and 40% gross profit growth over the next 12 months.

• Focus on deleveraging, opportunistic share buybacks, and resuming investments as market conditions improve.