EPE Capital Partners (EPE) H2 2024 earnings summary

Executive summary

• NAV per share declined by 17.9% year-over-year, from ZAR 8.56 to ZAR 7.03, mainly due to listed portfolio share price drops, especially Brait and MTN Zakhele Futhi.

• Unlisted portfolio grew 4% year-over-year, with actual EBITDA up 18% and strong operational turnarounds.

• Board decided to make no further fund investments, focusing on supporting NAV growth, orderly realizations, reducing leverage, and returning capital to shareholders.

• Realization program delivered ZAR 457 million in proceeds during the year, with total realized proceeds since listing reaching ZAR 1 billion and R134m realized in the year to 30 June 2024.

• Significant unbundling of Brait shares to shareholders, reducing NAV volatility and double discount.

Financial highlights

• LTM revenue and EBITDA for the unlisted portfolio increased by 12% and 18% respectively year-over-year.

• Optasia, the largest exposure (32% of assets), delivered 10% USD EBITDA growth but was impacted by severe Naira devaluation.

• NAV per share dropped from ZAR 8.56 to ZAR 7.03, mainly due to listed portfolio declines; adjusted NAV per share post-unbundling is ZAR 6.58.

• Brait ordinary shares fell 73% and MTN Zakhele Futhi shares fell 27% year-over-year.

• Listed portfolio return was -52% year-over-year; unlisted portfolio achieved +4% return year-over-year.

Outlook and guidance

• Market conditions are more favorable for NAV growth and realizations over the next 18–24 months, with several fund exits planned.

• Focus remains on maximizing investor outcomes, expediting capital return, and maximizing shareholder value.