DNB Markets - VEF: Market volatility not new to VEF
VEF’s NAV declined only ~3% QOQ in Q1 despite turbulent markets. With a portfolio of leading fintech holdings across some of the world’s fastest-growing markets, the investment community now expects VEF to report only a ~7% IRR on invested capital (versus its 30% track record), as the stock is trading 47% below NAV. We have cut our fair value to SEK6.3–7.4 (6.8–8.1) on our updated NAV forecasts, to which we apply a 10% discount to NAV.Q1 takeaways: 1) VEF's NAV declined 3% QOQ in USD in Q1, as it marked down its Russian exposure to zero (all Russia-related potential downside now reflected),
Valio Group net sales in 2021 were EUR 1,918 million, up 6.1% on the previous year (EUR 1,808 million). Domestic net sales increased by 10.9 percent, and international net sales fell by 0.7 percent. The coronavirus pandemic affected domestic consumption and was visible in the growth in retail sales. HoReCa sales increased considerably with the acquisition of Heinon Tukku. In the challenging situation, the successful business operations enabled Valio to keep the raw milk price paid to the cooperatives higher than the average European price. The milk return increased, as in previous years. In