Catella AB (FRA:SKVB) Q1 2025 Earnings Call Highlights: Strategic Moves and Market Challenges

In This Article:

  • Assets Under Management (AUM): Approximately SEK150 billion.

  • Revenue: Just north of SEK2 billion.

  • Revenue Decrease: SEK20 million year-on-year.

  • Operating Profit Impact from Kaktus Towers Sale: Nearly SEK260 million in 2025.

  • Investment Management AUM Increase: EUR150 million compared to year-end.

  • French SCPI Fund Upeka Return: Nearly 8% for last year.

  • Principal Investments IRR: 15% to 20% on invested capital.

  • Corporate Finance One-off Costs: SEK7 million in the quarter.

  • Negative Financial Net Impact: SEK143 million, with SEK104 million due to currency effects.

  • Cash Position: SEK782 million at the end of the quarter.

  • Equity Ratio: 37%.

  • Post-Kaktus Divestment Cash Position: SEK1.7 billion.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Catella AB (FRA:SKVB) manages approximately SEK150 billion in assets under management, indicating a strong market presence.

  • The company has operations in 12 countries and assets in 16, showcasing its extensive international reach.

  • Investment Management saw inflows exceed outflows, with a small increase of EUR150 million in AUM compared to year-end.

  • The French SCPI fund Upeka was among the top five performers in the market with nearly 8% return last year, boosting capital raising efforts.

  • The divestment of Kaktus Towers is expected to add nearly SEK260 million to the operating profit in 2025, strengthening the financial position.

Negative Points

  • Revenues decreased by SEK20 million year-on-year due to relatively slow transaction activity.

  • FX translation effects, as the SEK strengthened, had a substantial negative effect on financial net, impacting earnings per share.

  • The quarter saw a significant decrease in variable revenues, the lowest result in the last 16 quarters, due to limited transaction activity.

  • Corporate Finance experienced low transaction volumes, affecting the business area's top line and EBIT.

  • Restructuring costs of SEK7 million were incurred in Corporate Finance, impacting quarterly results.

Q & A Highlights

Q: Could you provide insight into how long in advance you can be certain that a transaction will go through in Investment Management? A: Michel Fischier, CFO, explained that funds have a clear plan for asset divestment and investment, giving a good view of upcoming transactions. However, some transactions may face delays, but the pipeline for the year is clear.

Q: How does the transaction pipeline for the rest of the year compare to last year's volumes? A: Michel Fischier stated that specific numbers regarding the pipeline are not disclosed, so no direct comparison to last year's volumes was provided.