Svolder (SVOL) Q3 23/24 earnings summary

Executive summary

• Net profit for the quarter was 672 MSEK (6.60 SEK/share), up from 77 MSEK (0.70 SEK/share) year-over-year; nine-month profit reached 1,166 MSEK (11.40 SEK/share), up from 156 MSEK (1.50 SEK/share) year-over-year.

• Substansvärde (NAV) per share increased 11.9% to 61.60 SEK in the quarter and 22.7% over nine months, including reinvested dividends.

• B share price rose 13.2% in the quarter to 67.50 SEK, outperforming NAV growth but slightly underperforming the Carnegie Small Cap Return Index (CSRX) at 13.0%.

• Key positive contributors to NAV: Ependion, ITAB, Nolato; negative: New Wave, MilDef.

• Portfolio adjustments included increased holdings in Scandic Hotels, Elanders, MilDef, and reduced positions in New Wave, Troax, engcon.

Financial highlights

• Operating profit for the quarter was 669 MSEK, up from 76 MSEK year-over-year.

• Cash flow from operations was 91.7 MSEK for the quarter; net cash position at period end was 254.4 MSEK.

• Portfolio was unleveraged at quarter end; credit facility of 500 MSEK remains unused.

• Dividend of 1.00 SEK/share paid in November 2023.

Outlook and guidance

• Management expects continued long-term growth driven by global megatrends, despite short-term market uncertainty.

• Short-term market conditions remain uncertain, but optimism persists for small-cap recovery and portfolio companies' resilience.