Fram Skandinavien (FRAM) Q4 2024 earnings summary

Executive summary

• Net asset value (NAV) as of Jan 31, 2025, was 110 MSEK (30 SEK/share), down 8% month-on-month, mainly due to a lower EveHR valuation after a secondary share transaction.

• Portfolio companies made progress toward breakeven; Carmudi achieved its first positive EBITDA quarter, EveHR reduced EBITDA loss by 74% year-over-year, and Liven Technology grew revenue by 116% year-over-year.

• Operational losses from continuing operations narrowed to -1.6 MSEK in Q4 2024 from -7.3 MSEK in Q4 2023.

• Investor sentiment in Southeast Asia remains cautious, with a focus on profitability over GMV or revenue growth, impacting exit opportunities for core holdings.

Financial highlights

• Q4 2024 group revenues were 1,600 KSEK, down from 8,017 KSEK in Q4 2023, mainly due to Carmudi's shift to more profitable transactions.

• Gross profit for Q4 2024 increased by 58% to 956 KSEK, with gross profit margin rising from 8% to over 60%.

• Adjusted EBIT for Q4 2024 was -1,530 KSEK, improved from -2,274 KSEK in Q4 2023; EBIT loss from continuing operations reduced to -1,650 KSEK from -7,345 KSEK.

• Loss for the period was -2,041 KSEK, compared to -22,780 KSEK in Q4 2023.

• Cash at period end was 8,064 KSEK; operational cash flow from continuing operations was +357 KSEK.

Outlook and guidance

• Cautiously optimistic for 2025, with expectations of a rebound in IPO and M&A activity in 1H 2025, though most VC funding is concentrated in AI and robotics.

• SEA VC funding remains subdued, with Q4 2024 deal volume at a six-year low and funding down 41% year-over-year.

• Fram's focus remains on driving portfolio companies to profitability before considering exits.