Q3 2024 Vef AB (publ) Earnings Call Transcript
Key Points
- VEF AB (VEFFF) reported a 9% increase in NAV quarter on quarter, reaching $475 million, which is a 24% increase from 2022 lows.
- Creditas, a major asset, showed strong performance with a 16% increase in originations quarter on quarter and over 30% year on year.
- The majority of VEF AB (VEFFF)'s portfolio is now breakeven, with over 90% of the portfolio in this position.
- The company has seen fresh capital inflows, with Konfio raising capital at NAV mark, reaffirming the company's valuation process.
- Exit markets, particularly in India, are showing signs of life with a robust IPO market, providing potential opportunities for VEF AB (VEFFF).
- VEF AB (VEFFF) has a relatively low cash position of $13.2 million, expected to decrease to $11 million by year-end, raising concerns about liquidity.
- The company has an outstanding bond of $40 million, which could pose a financial burden if not managed properly.
- There is a risk of market overheating, particularly in India, which could affect the valuation of portfolio companies like Juspay.
- The company has not yet realized any exits, which are crucial for improving liquidity and reducing debt.
- VEF AB (VEFFF) faces a significant discount to NAV in its share price, which it aims to address through various strategies.
Good morning. Good afternoon, everybody, and welcome to our third-quarter results conference call. As per usual, I have our CIO, Alexis Koumoudos, with me today, helping me in the presentation and the Q&A.
And what we'll do is for the next 20 minutes, plus-minus, is go through the latest and greatest from the VEF side and then open up for questions from you. The details of our presentation is on the webcast, which is live at the moment, as well as being downloadable from our website.
But kicking in on slide 2, key events of the quarter from our side. I think, first and foremost, it's in the NAV performance, up 9% quarter on quarter. We now have a NAV of $475 million, and that's up at 24% from 2022 lows, obviously a low point in the cycle. This has been driven in the quarter and year to date by a mixture of robust portfolio performance, healthy markets, and FX tailwinds. But the most important thing for us is the portfolio performance because that's a key indication of the quality of our portfolio and where it's going and how it's
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