Invalda INVL’s equity at the end of September 2022 was EUR 98 million, or EUR 8.28 per share. Compared to the end of 2021, the two figures were down 19.2% and 19.8%, respectively.
Invalda INVL had a loss of EUR 16.2 million in January-September due to a drop in the value of its investments. In the same period last year, it had a net profit of EUR 19.4 million.
The group’s client assets under management totalled EUR 1.75 billion as of 30 September 2022, which is 9% more than at the start of 2022 (EUR 1.609 billion) due to new client funds attracted, even as the value of their investments decreased by EUR 163.1 million during nine months of this year. The number of clients entrusting their assets to the Invalda INVL group increased by 15.3% in the period to 300,000.
“This is a year of losses for most investors, which is natural given the geopolitical and economic environment in the world and the actions being taken in the markets to manage the situation. Some investments of Invalda INVL, too, are seeing a similar drop in value. We can’t predict when, but we’re confident that businesses which are competitive, adapt to changing circumstances and operate successfully will be able to deliver long-term returns to investors,” says Darius Šulnis, the President of Invalda INVL.
The investment management and life insurance business
Invalda INVL’s revenue from the operational part of its investment management and life insurance business, i.e. the management of its clients’ assets, was EUR 13.1 million in three quarters of this year and increased 25.4% compared to the same period of 2021.
The investment management and life insurance business, including investments in collective investment undertakings managed by INVL, had a pre-tax loss of EUR 2.8 million. That compares to a pre-tax profit of EUR 6.3 million in the same period of 2021.
Last quarter brought significant events for the INVL group. One was the Invalda INVL group’s successful completion on 1 July of its acquisition of Mandatum Life’s life insurance business in the Baltics.
Funds managed by the group also successfully continued acquisitions and fundraising. PET Baltija, which is one of the largest PolyEthylene Terephthalate (PET) recyclers in Northern Europe and is owned by the INVL Baltic Sea Growth Fund portfolio company Eco Baltia, acquired Tesil Fibres, a leading Czech fibre producer. Another of the fund’s portfolio companies, MiniVet, entered the Polish veterinary sector by investing in LuxVet, one of Poland’s largest veterinary care networks, while Eco Baltia, the largest environmental and waste management group in the Baltics, agreed to acquire 100% of Latvia’s Pilsētas Eko Serviss (“Pekos”) and related companies. The INVL Baltic Sea Growth Fund’s portfolio company InMedica acquired the Medicinos Paslaugų Centras (MPC) chain of family medical clinics in Vilnius as well as the Danta dental clinic in Klaipėda, and agreed to acquire the Vilniaus Implantologijos Centras (VIC) dental clinic in Vilnius.
The INVL Renewable Energy Fund I signed agreements in September and October to acquire new solar farm projects in Romania. Those transactions will increase the total capacity of the fund’s solar farms in Romania to 442.7 megawatts (MW), with total investments of approximately EUR 350 million planned in the projects. The fund raised an additional EUR 18.3 million from investors for developing solar farm projects in Poland and Romania.
Investors entrusted another USD 1.9 million to the INVL Partner Global Infrastructure Fund I in the third quarter.
INVL Asset Management, with long experience in the management of investment portfolios, signed a cooperation agreement with the Klaipeda University Future Fund on managing its portfolio of endowment capital. Returns earned on the investments will be used to finance the university’s activities.
This year’s most important event was the agreement that Invalda INVL and Šiaulių Bankas signed on 22 November on the merger of part of their retail businesses. According to Invalda INVL’s president, a bank that is actively growing and expanding its portfolio of services, that maintains high profitability and is attentive to the value of its shares should become even more attractive to institutional and private investors.
Invalda INVL’s other equity investments, aside from the investment management and life insurance business, generated a pre-tax loss of EUR 14.5 million. This was mainly due to a decrease in the value of Šiaulių Bankas (EUR 15.6 million) and of Moldova-Agroindbank (maib) (EUR 4.2 million), Moldova’s largest bank, reflecting a general decline in the value of publicly listed banks.
“The loss on the investments in Šiaulių Bankas and maib is due to a notable drop in the value of the banks’ shares. While both banks are performing very well, their valuations are still heavily weighed down by the situation in the markets. We do not emphasize the value changes since both banks are operating successfully, gaining in strength and making record profits, which in the longer term should be reflected in their share price as well,” Darius Šulnis says.
The value of Invalda INVL’s investments was affected positively (EUR 3.4 million) by the profitable work of Litagra, one of Lithuania’s largest agribusiness groups. Litagra has achieved record results this year for two reasons: the successful management of its business, which has grown considerably as a result of investments and acquisitions, and favourable market trends.
ATTACHED: Factsheet for the 9 months of 2022. We draw the attention of investors that the accounting of business combination has not been completed, therefore, its impact is not reflected in the Group’s numbers for 9 months of 2022. The acquired life insurance business is consolidated. The final decision whether to consolidate or not the life insurance business will be taken at the time of issue of annual reports for 2022 upon receipt of the auditor’s confirmation regarding the compliance of such decision with the requirements of the accounting standards.
The person authorized to provide additional information is:
Darius Sulnis, President of Invalda INVL