Q4 2024 Vef AB (publ) Earnings Call Transcript
Key Points
- 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.
- The company expects 35% to 40% top-line and profit growth for the next year, indicating a strong growth trajectory.
- Creditas, a significant portfolio company, showed a 17% quarter-on-quarter origination growth, nearly 50% year-on-year, driving profitability.
- The portfolio is largely break-even and self-sustaining, with over 90% of companies not dependent on fresh capital for growth.
- 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.
- The company's NAV decreased by 26% quarter-on-quarter in dollar terms, primarily due to macroeconomic factors in Brazil.
- Creditas experienced a 44% decline in valuation quarter-on-quarter, driven by macro factors and peer multiple contractions.
- Transfergo's valuation saw a 32% decline, reflecting weaker FX and peer multiple contractions.
- The Brazilian real depreciated by 12% in the quarter, negatively impacting valuations.
- The NAV per share in SEK decreased from SEK4.26 to SEK3.73, reflecting the challenges faced in Q4.
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(audio in progress) Welcome all once again to our results -- quarterly results conference call this time for the fourth quarter of '24.
And going straight into the deck, it was a more eventful quarter than usual. And the highlights of key events in the quarter, first and foremost, it was around our NAV and our Q4 NAV. Weakness was driven by mainly Brazil macro and markets aspect feeding into our evaluation process. And we'll get into that in a bit deeper detail [at the end] of the presentation. But we ended the quarter in the year at a NAV of $353 million, down 26% quarter on quarter in dollar terms, and down nearly 20% quarter on quarter in SEK.
From a portfolio point of view, looking at the underlying companies and once again, still delivering the [core message] is the same as last quarter, majority break-even, which is where we want them to be. And growth is back in focus and we saw those trends coming through in our key names in the portfolio through 2024. And that
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