Invalda INVL’s equity at the end of September this year was EUR 135.6 million, or EUR 11.29 per share. The figures were 3.7% and 2 % larger, respectively, than at the end of 2022.
Invalda INVL had a net profit of EUR 3.6 million in January-September, compared to a loss of EUR 12.4 million in the same period last year.
Client assets under management by the group’s companies totalled EUR 2.243 billion at the end of September, which is 27.9% more than a year earlier and 17.9% more than at the start of 2023 (EUR 1.902 billion).
In three quarters of this year, INVL clients had gains of EUR 110 million. The number of clients who have entrusted their assets to the Invalda INVL group grew by 4.9% from a year earlier to 315,000 (up 3.7% from the start of 2023).
“This year is going very well for most of our funds, clients’ investments are growing, and thus in the third quarter of 2023, assets under management reached an all-time high of EUR 2.243 billion,” Darius Šulnis, the President of Invalda INVL says.
“A major strategic change for Invalda INVL is the EUR 41.8 million merger of its retail businesses with Šiaulių Bankas, which was completed today, 30 November. The integration of that long-successful and fast-growing part of the group into Šiaulių Bankas will have a preliminary positive impact of EUR 26.6 million (or about EUR 2.2 per share) on the net profit of the Invalda INVL group and the parent company, which will be reflected in the annual results for 2023. This impact will arise because, as required by international accounting standards, Invalda INVL accounts for its asset management business (both what is being separated off and what is remaining) on a historical cost basis rather than at fair value. The carrying amount of the business differs significantly from its fair value,” Šulnis notes.
“I thank the Invalda INVL group’s entire team, which has elevated the business to its current level and will continue to do so both at Šiaulių Bankas and in Invalda INVL’s work with alternative and other investments and family office services in the Baltics,” the head of Invalda INVL says.
After the transaction, the Invalda INVL group’s assets under management will amount to EUR 1 billion, while more than 210,000 clients and over EUR 1.2 billion of client assets under management in the Baltics will be incorporated into the Šiaulių Bankas group.
The investment management and life insurance business
Invalda INVL’s revenue from the operational part of its investment management business, i.e. the management of clients’ assets, was EUR 12.2 million in nine months of 2023 and grew 17.7% versus the same period of 2022.
The investment management and life insurance business, including investments in collective investment undertakings managed by INVL, had a pre-tax profit of EUR 3.1 million in January-September 2023, compared to a pre-tax profit of EUR 0.9 million in January-September last year.
The funds that INVL manages continued investment activities in line with their strategies, including new acquisitions.
Among the more significant developments in the second half of this year, the private equity INVL Baltic Sea Growth Fund, together with a portfolio company Eco Baltia, completed the acquisition of Metal-Plast, Poland’s largest PVC recycler, and in November, signed an agreement to acquire a 100% stake in the Galinta Group, one of the largest producers of buckwheat groats in Europe and one of the leading producers and traders of flakes, rice and other groats in the Baltics. The INVL Renewable Energy Fund I secured EUR 25 million of financing from Kommunalkredit Austria for the construction of solar power plants in Romania, and the INVL Bridge Finance private debt fund agreed to lend EUR 9.5 million to Green Genius for renewable energy projects.
Equity investments
Invalda INVL’s other equity investments, aside from the investment management and life insurance business, had a EUR 850,000 impact on earnings.
Both Moldova-Agroindbank (maib), Moldova’s largest bank, and Šiaulių Bankas had record results in the first three quarters of 2023 and paid dividends. Taking the dividends that were paid into account, maib’s impact on Invalda INVL’s earnings was positive, at EUR 4.8 million, while Šiaulių Bankas’s was a negative EUR 2.6 million.
“Šiaulių Bankas and maib are earning significant returns for their investors, growing fast and developing successfully. We expect the returns they bring to Invalda INVL to steadily grow in the future,” Šulnis says.
There was also a negative impact of EUR 1.8 million on the value of Invalda INVL’s investments (taking dividends into account) from the investment in Litagra, one of Lithuania’s largest agribusiness groups. While 2022 was a record year for the Litagra group, this year has been marked by a sharp drop in milk purchase prices, lower average cereal yields and high fertiliser costs.
“Mostly due to market factors, 2023 has been a bad year for the Litagra group. We realise the cyclical nature of this business and are working in the areas we can influence and planning for a successful coming year,” the head of Invalda INVL says.
The shares of Invalda INVL have been traded on the Nasdaq Vilnius stock exchange since 1995.
Attached:
Factsheet for 9 months of 2023