Interim report January-December 2022

2023-02-23 08:30:00
  • Net asset value was SEK 196.3 per share compared to SEK 323.2 at the beginning of the year, equivalent to a decrease of 39.2 per cent.
  • Bure’s net asset value was SEK 14,559M compared to SEK 23,964M at the beginning of the year.
  • Total return on the Bure share was -43.1 per cent compared to SIX Return Index that fell 22.8 per cent.
  • Group earnings after tax amounted to SEK -9,235M (6,362). Earnings per share amounted to SEK -124.7 (85.7).

Interim report October – December 2022

  • Net asset value was SEK 196.3 per share compared to SEK 163.7 at the beginning of the quarter, which is equivalent to an increase of 19.9 per cent.

Subsequent events

  • Net asset value amounted to 215.5 per share on 22 February 2023, equivalent to an increase of 9.7 per cent since the beginning of the year.
  • The board proposes to the annual general meeting an ordinary dividend of SEK 2.25 per share (2.25).
  • Bure subscribed for 1,123,595 shares in Ovzon’s rights issue for SEK 50M. The issue is planned to be conducted following a decision at an extraordinary general meeting of Ovzon on the 3 March 2023.

Comments from the CEO

2022 will be remembered as one of the worst stock market years in two decades. War in Europe, spiralling interest rates, rampant inflation, skyhigh electricity prices, fluctuating currencies, and China closed by covid. Overall, these external factors caused the Stockholm stock exchange to fall 22.7 per cent in 2022. Bure’s net asset value per share decreased -39.2 per cent. The stock market decline was particularly pronounced for many growth companies. Several of Bure’s portfolio companies can be included in this category. The value trend in all listed portfolio companies was negative for the year and our core holding Vitrolife lost -66.8 per cent. However, in September we saw a turnaround. In the fourth quarter, Bure’s net asset value per share increased 19.9 per cent compared to the SIX RX that increased 11.3 per cent.

The situation was challenging on a macro level and for stock markets in 2022. However, our portfolio companies performed well. Mycronic broke sales records and ended the year with a record-breaking order intake. Xvivo grew organically by 30 per cent and BioLamina by 78 per cent. Allgon improved its EBIT margin to just over 15 per cent and ScandiNova doubled its operating profit. Vitrolife also presented a strong report. The transition period following the acquisition of Igenomix formed the basis for, among other things, this year’s improvement in margin and strong cash flow.

It is a relief to leave 2022 behind us, even though many concerns persist in 2023. Economic growth will probably continue to be weak, but the likelihood of a severe recession has decreased. Interest rates are still moving upwards but inflation has hopefully peaked. For Bure, it is important to continue to work closely with its portfolio companies and develop their fine businesses. We will help them navigate challenging market conditions and maintain a long-term focus on competitive products and services as well as excellent customer relationships.

Bure Equity AB (publ)