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 from top holdings like Creditas and Juspay, despite equity market headwinds and a 20.2% YoY decline.

• Over 90% of the portfolio is break-even or profitable, with sustainable growth and a focus on capitalizing on new opportunities.

• Three exits (BlackBuck IPO, Gringo sale, Juspay partial exit) in the past six months generated USD 32 mln in gross proceeds, validating NAV marks and supporting balance sheet deleveraging and share buybacks.

Financial highlights

• NAV per share remained at USD 0.34; in SEK, NAV per share decreased 8% to SEK 3.43 due to currency movements.

• 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, excluding proceeds from the Juspay exit.

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

Outlook and guidance

• Management is confident in continued strong growth, especially for Creditas, which targets 25%+ loan book growth in 2025 while maintaining cash flow positivity.

• Short-term focus remains on balance sheet management, including deleveraging and share buybacks, before resuming new investments.

• More exits and opportunistic realizations are targeted for 2025/26.