Kinnevik announces a reduction in its net asset value (update)

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Investment company Kinnevik’s net asset value decreased by 4.8% during the third quarter, measured at a quarterly rate.

The net asset value per share was SEK 132.01 as of September 30, compared to SEK 139.77 mid-year and SEK 180.32 during the same period last year. The net asset value was SEK 171.02 per share at the end of the year, meaning it decreased by 14 percent, adjusted for the additional distribution of SEK 6.4 billion.

The result after tax was -1,913 million SEK (-3,276).

Earnings per share amounted to -6.78 SEK (-11.63).

Net cash amounted to SEK 12,170 million, compared to SEK 7,880 million at the start of the year. A year ago, the level was SEK 7,642 million.

The company invested SEK 1,262 million during the quarter, including SEK 836 million in the main holding company Spring Health and SEK 231 million in the new holding company Aira. Divestments amounted to SEK -639 million, which concerns the remaining stake in Tele2.

The value of the unlisted portfolio was reduced by 7% during the quarter, primarily due to the write-down of VillageMD and negative currency effects.

“We have made the radical but prudent decision to reduce the underlying valuation of the company to a level where all of the value is used to cover VillageMD’s debt to its controlling shareholder Walgreens, without benefit of other shareholders. “We are evaluating our options to preserve as much of the value of the investment we have retained as possible, and we expect more clarity before the end of the year,” said Georgi Ganev, CEO of Kinnevik.

As for the main holdings – Cityblock, Mews, Pleo, Spring Health and TravelPerk – they would have continued to produce the expected results this year.

“Over the past 12 months, these companies have grown their revenue by more than 60% on average and have continued to make strides towards profitability. We expect that as a group they will generate positive ebitda margins in 2025,” Ganev said.