The investment company VEF decreased its net asset value per share in the fourth quarter. The operating result showed a loss against a profit in the previous period.

Net asset value per share was USD 0.37 (0.42). Net asset value was SEK 3.82 per share, up from SEK 3.73 per share at year-end. At the end of the third quarter, net asset value was SEK 4.61 per share.

"Net asset value declined by 20 percent to USD 353.0 million in 4Q24 as macroeconomic headwinds outweighed performance at the portfolio company level. The strengthening of the US dollar combined with weakening prices of mainly Brazilian assets had a direct negative impact on our net asset value during the quarter," the company writes.

The operating result was USD -84.9 million (24.5).

Profit after tax was -89.8 million dollars (19.4).

Earnings per share amounted to -0.09 dollars (0.02).

"We are adjusting down our holding in Creditas, a model-based valuation holding, by 43 percent QoQ. The majority of this change is market driven (currencies and multiples). This is a dramatic quarterly adjustment and we understand what a major change in value of our largest holding can look (and feel) like. That said, the market movements in Brazil in 4Q24 are transparent to the macroeconomic downturn and our valuation simply reflects the reality of the market", writes CEO Dave Nangle.

The company intends to strengthen its balance sheet going forward.

"Strengthening our balance sheet and reducing our net asset discount are strategic priorities from 2024 that we intend to carry into 2025. Our goal is to reduce our net worth discount and return to investing," writes Nangle.

VEF, USD MILLIONQ4-2024 Q4-2023 Change in
Operating profit/loss-84,9 24,5
Net result-89,8 19,4
Earnings per share, USD-0,09 0,02
Net asset value per share, USD 0,37 0,42 -11,9%