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Kinnevik records 11 percent drop in its Q1 net asset value

By Prachi Singh

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Report

In its interim report to March 31, 2020, Kinnevik said NAV of 64.9 billion Swedish krona, declined 8.4 billion Swedish krona or 11 percent in the quarter, driven primarily by a 20 percent drop in the value of our Zalando investment, corresponding to 6.2 billion Swedish krona. Net debt position stood at 1.5 billion Swedish krona, corresponding to a leverage of 2.2 percent of portfolio value.

“We are impressed by all our companies’ ability and agility in facing the new reality, and we are supporting them to ensure that, even as they make short term adjustments to save costs and safeguard their financial positions, they remain focused on long term value creation,” said Georgi Ganev, CEO of Kinnevik.

The company said in a statement that fashion ecommerce suffered from lower sales growth resulting in inventory write-downs, though showing relative resilience compared to physical retailers. “The crisis’ effect on the travel industry has been severe, and our companies are focusing on product development and continued customer acquisition,” it added.

The company invested 403 million Swedish krona in the quarter, including 150 million Swedish krona in MatHem’s funding round, bringing Kinnevik’s ownership stake to 36 percent, 106 million Swedish krona in Budbee’s funding round, bringing ownership stake to 30 percent and 74 million Swedish krona in Town Hall Ventures’ Fund II.

The company further said that Erika Söderberg Johnson joined Kinnevik as Chief Financial Officer on April 6, 2020 and Anna Stenberg will join Kinnevik as Chief People and Platform Officer in May 2020.

Picture:Zalando newsroom

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