Strong Financial Performance of Invalda INVL Group in 2024
Invalda INVL has reported impressive equity figures totaling EUR 222 million by the close of December 2024, translating to EUR 18.48 per share. This marks an increase of 25.4% and 25.3% year-on-year, respectively, significantly boosted by dividends distributed last year.
Net Profit and Dividend Insights
Invalda INVL achieved a net profit of EUR 44.4 million in 2024. This represents a slight decrease from EUR 45.8 million in 2023, when the company completed a critical merger with Šiauli? bankas, enhancing its retail business landscape. The firm has proposed a dividend payout of EUR 15 million, which equates to EUR 1.25 per share. This proposal is set for voting at the shareholders' general meeting scheduled for April.
Management's Perspective
Commenting on these results, CEO Darius Šulnis stated, "The year 2024 was highly successful and beneficial for both our clients and the Invalda INVL group. Despite the swiftly changing geopolitical and economic arena, our focus remained on fostering long-term value through strategic investments, asset diversification, liquidity assurance for our clients, and enhancing the competitiveness of our managed businesses."
Client Growth and Asset Management
The group generated gains of EUR 157 million for its clients over the past year, as client assets under management increased by 17%, hitting EUR 1.68 billion by the end of 2024. However, the revenue from managing client assets dipped by 16.5% to EUR 14.1 million compared to 2023. This decline can be attributed to the transfer of retail business revenue, which was shifted to Šiauli? Bankas in December 2023.
Performance of Core Business
The profit from Invalda INVL's primary business activities, that also encompass managed product investments, stood at EUR 17.8 million for the year, a significant decline from EUR 39.4 million in 2023.
Strategic Investments and Fund Activities
A highlight for the group was the INVL Baltic Sea Growth Fund (INVL BSGF), which made notable acquisitions including the buckwheat producer and grain trader Galinta in February 2024. By the year’s end, agreements were made to acquire shares in Pehart Group, Romania's top manufacturer of paper products, solidifying the fund’s strategy to cultivate sector leaders.
Furthermore, by March 2025, INVL BSGF expects to finalize the sale of InMedica Group, a private healthcare network that witnessed exponential growth over six years, expanding from 18 to 89 clinics, hospitals, and laboratories, all while increasing revenues more than fifteenfold.
Future Focus for Investment Funds
Darius Šulnis emphasized that the remaining portfolio companies remain robust and some are being readied for sale. The objective moving forward is to generate cash flows from these assets, ensuring solid returns for investors.
New Ventures and Market Initiatives
The groundwork was laid in 2024 for the second-generation private equity fund, INVL Private Equity Fund II. This fund, which has successfully raised EUR 305 million, is poised to be the largest of its kind in the Baltics, surpassing initial size expectations.
Across the portfolio companies, total revenues reached EUR 854 million, with an EBITDA of EUR 207 million, supporting a workforce comprised of 12,500 employees at year-end.
Global Investment Initiatives
Investor response to Invalda INVL Group’s offerings in global third country funds has been favorable. Early in 2024, the INVL Partner Global Real Estate Fund I attracted USD 13.25 million, whereas the INVL Partner Power Opportunities Fund managed to raise USD 24.71 million by September.
Green Investments and Renewable Energy Focus
The INVL Renewable Energy Fund I is preparing for the operational management of power generation projects that promise to start yielding revenue soon. In tandem, plans for a second renewable energy fund are underway, highlighting a broader infrastructure strategy set to be executed in 2025.
Growth in Sustainable Ventures
The INVL Sustainable Timberland and Farmland Fund II expanded its footprint by acquiring forests in Romania, pushing its total land and forest holdings beyond 20,000 hectares. The fund aims to enhance its portfolio's quality, facilitating value-added transactions while striving for sustainable revenue generation and optimizing investor returns.
Company-Specific Ventures and Achievements
INVL Technology achieved a remarkable net profit of EUR 8.1 million, an increase of 56.6% from the previous year, with its share price surging nearly 70%. In a significant move, INVL Technology entered into an agreement with an investment advisor for the sale of its business portfolio.
INVL Baltic Real Estate also showcased prowess with a consolidated net profit of EUR 2.74 million, which is markedly higher than its 2023 results. This segment also successfully completed the sale of a property worth EUR 7.45 million in Latvia.
As of late 2024, INVL Asset Management took charge of managing INVL Bridge Finance, which actively functions within the private debt sphere.
Family Office Expansion
The INVL Family Office continued its successful trajectory in Lithuania while simultaneously launching services in other Baltic states, attending to its first clients in Latvia and Estonia.
Impact of Equity Investments
Invalda INVL’s diverse equity investments, beyond asset management, produced an income impact of EUR 32.1 million in 2024, benefiting from robust financial outcomes in the banks where the company holds shares, along with increasing dividend payouts.
The success of Šiauli? Bankas notably benefited Invalda INVL, contributing EUR 23.6 million through pretax profits and dividends. The bank integrated the retail business effectively and is undergoing a rebranding to Artea after securing a record net profit of EUR 79.3 million last year.
On the other hand, maib maintained impressive financial momentum, reporting a net profit of EUR 73.4 million and paying out EUR 39.4 million in dividends.
Litagra, a leading agribusiness entity in Lithuania, capitalized on favorable market trends to enhance revenue, leading to a positive influence of EUR 3.3 million on Invalda INVL’s overall results for 2024.
The individual designated to provide further details is:
Darius Šulnis, CEO of Invalda INVL
Darius.Sulnis@invl.com
Frequently Asked Questions
What were the notable financial results for Invalda INVL in 2024?
Invalda INVL reported equity of EUR 222 million and a net profit of EUR 44.4 million for 2024.
What factors contributed to Invalda INVL's revenue changes?
The decline in revenue was largely due to the transfer of retail business activities to Šiauli? Bankas.
How did investments perform in 2024?
Invalda INVL generated significant gains for clients, and major investments led to a positive bottom line for the company.
What initiatives are being explored for future growth?
The company is focusing on new private equity funds and expanding its portfolio in renewable energy.
Who can be contacted for more information?
For inquiries, you can reach out to Darius Šulnis, CEO of Invalda INVL, via email at Darius.Sulnis@invl.com.
