Kinnevik reports 1.7 percent fall in Q2 net asset value

During the second quarter of 2016, Kinnevik’s net asset value (NAV) of 64.6 billion Swedish krona or 235 Swedish krona per share (27.31 dollars), declined 1.7 percent. The decline was driven by 1 percent decrease in value of the listed investee companies and 2 percent decrease in value of the unlisted investee companies.

“Following our commitment in April to guarantee the new financing in Global Fashion Group, the round was successfully concluded with Kinnevik taking a clear leadership role as the largest shareholder. We executed a significant capital return during the quarter through the payment of a 2.1 billion Swedish krona ordinary dividend as well as a five billion Swedish krona share redemption program,” said Lorenzo Grabau, CEO of Kinnevik.

Highlights of the second quarter

Zalando grew revenues by 24-26 percent in the second quarter and improved the EBIT margin to 7.5-9.5 percent, according to preliminary numbers, compared to 4.1 percent in the corresponding period 2015. The company had 18.4 million customers at the end of the first quarter and continued to make significant investments in its mobile capabilities.

Global Fashion Group saw continued strong growth across all regions with revenue growth of 25.7 percent in euros in the first quarter of 2016, as well as an EBIT margin improvement of 17 percentage points. With a stable financial position after the recent funding round, the company now plans to focus on leveraging its commercial scale and drive profitability improvements.

On July 7, the shareholders of Global Fashion Group agreed on a 330 million euros (363 million dollars) funding round with Kinnevik investing 161million euros (177.5 million dollars). Post completion of the funding round Kinnevik will hold a 35 percent stake of the company.