VALARTIS GROUP AG HALF-YEAR REPORT
2023
KEY FIGURES
in CHF 1,000
Total operating income
Income from management services
Income from investment property
Share of results of associated companies
Other income
Administrative expense
Personnel expense
General expense
Earnings before depreciation, valuation adjustments, provisions, interest and taxes
Depreciation, valuation adjustments and provisions
Earnings before interest and taxes (EBIT)
Finance result, net (financial income, financial expense, market value adjustment)
Net result from continued operations before taxes
Income taxes
Net result from continued operations
Net result from discontinued operations
Net result
attributable to shareholders of Valartis Group AG
attributable to non-controlling interests
in CHF 1,000
Total assets
Current assets
Non-current assets
Non-current assets classified as held for sale
Total liabilities
Current liabilities
Non-current liabilities
Total shareholders' equity (including non-controlling interests)
Equity capital quota, in per cent
Staff (full-time equivalents, FTE)
Closing price of VLRT share, in CHF
Equity of Shareholders per share, in CHF
1.1.-30.06.2023
6,175
1,948
1,984
2,132
111
-4,173
-2,474
-1,699
2,002
-120
1,882
-6,419
-4,537
-50
-4,587
-
-4,587
-2,345
-2,242
30.06.2023
143,401
42,064
101,337
-
46,541
20,270
26,271
96,860
67.5
38.0
13.85
29.94
1.1.-30.06.2022
11,056
2,585
2,269
6,096
106
-4,562
-2,712
-1,850
6,494
-3,001
3,493
13,699
17,192
182
17,374
436
17,810
12,892
4,918
31.12.2022
204,295
44,149
160,146
-
78,254
20,633
57,621
126,041
61.7
67.0
18.00
27.60
CONTENTS
5 | Management Report |
7 | Valartis Group |
CONSOLIDATED FINANCIAL STATEMENTS
- Consolidated Income Statement
- Consolidated Statement of Comprehensive Income
- Consolidated Statement of Financial Position
14 | Consolidated Statement of Changes in Equity |
16 | Consolidated Cash Flow Statement |
NOTES
20 | Notes to the Consolidated Financial Statements |
22 | Notes to the Consolidated Income Statement |
25 | Notes to the Consolidated Statement of Financial Position |
- Additional Information
- Events after the balance sheet date
36 | Addresses and imprint |
Legal notice
This interim report is for information purposes only. Due to their nature, statements about future developments involve general and specific risks and uncertainties. In this context, it should be noted that forecasts, projections and results described or implied in forward-looking statements are not accurate.
Notes on the figures
The amounts shown in the figures are rounded. The total may therefore differ from the sum of the individual values.
MANAGEMENT REPORT
BUSINESS PERFORMANCE AND
ECONOMIC SITUATION OF VALARTIS
The first half of 2023 was characterised by a challenging environ- ment. Valartis Group reported a half-year net loss of CHF 4.6 million (previous half-year: net gain of CHF 17.8 million) primarily attributable to the impact of the ruble exchange rate against Swiss franc, which adversely affected the investments held by ENR giving a negative net finance result of CHF 6.4 million for Valartis. The operating income decreased due mainly to lower contribution of associated companies compared to the previous year, while administrative expenses shrank by 9 per cent. However, the half-year EBITDA amounted to a profit of CHF 2.0 million.
During the first semester 2023, Valartis Group acquired 27.3 per cent of its own shares held by one of its large shareholders. As a consideration for the Valartis shares, the Group has delivered a significant portion of its holdings in Athris AG thereby realising a gain of CHF 6.9 million. In accordance with IFRS, the gain on the sale has been recognised over the entire period of ownership rather than being recorded as a one-time gain at the date of dis- posal. This fact is reflected within the Consolidated statement of change in equity where the realised gain is transferred to retained earnings. The share buyback transaction was approved by the Annual General Meeting of 16 May 2023. The acquired shares were subsequently cancelled in June 2023 reducing the number of outstanding shares in the Valartis Group to 3,126,295 as of 30 June 2023 from 4,299,295 as of 31 December 2022.
The ENR Group investment portfolio was impacted by the ruble depreciation by 18.9 per cent against the Swiss Franc during the first half year 2023 whereas local business operations continue to operate normally. Kaluga Flower Holding locally produces flowers substitute of imported flowers. Its greenhouses are at full capacity utilisation with 25.1 hectares in productive use. Flower growing, cutting and sales remain solid. At the Petrovsky Fort business centre in Saint- Petersburg, the 1,000 square metres area under refurbishment to create a new value added co-working rentable space is progressing well. Due to sanctions, the Russian operating environment was impacted by import and export restrictions, import substitution, new regional and international sourcing and distribution routes, capital controls, and a lower growth environment.
The associated company Norinvest Holding (Banque Cramer & Cie SA) continues its recurrent profitable niche banking business with a positive first semester 2023 benefitting from the higher interest rate environment and on the shipping side, the multi- purpose vessel (MPP) market are showing reduced but still very profitable daily rates, with growing demand for versatile and efficient ships that can handle multiple cargo types. Thanks to their flexibility, our joint-venture companies remained highly
profitable despite the normalisation of daily charter rates. The Group and its partner has also initiated to diversify its investment in that sector in ordering a new container ship that will be delivered during the second half 2023.
In the first half year 2023, EPH European Property Holdings PLC ("EPH"), successfully disposed its entire Russian portfolio. This transaction closed in April 2023, contributes to the strategic realignment of the company. From now on, Valartis Group will continue to provide real estate advisory and management services exclusively to the remaining European portfolio of EPH. Consequently Valartis Group has restructured its local subsidiaries and reduced its operations in Russia. All third party advisory business outside the mandate from ENR have ceased with most employees in Moscow having been reassigned.
As of 30 June 2023, Valartis Group employed a total of 38 full- time equivalent employees in operations (31 December 2022: 67 employees).
FINANCING SITUATION
The consolidated shareholdersʼ equity amounts to CHF 97 million as at 30 June 2023 (31 December 2022: CHF 126 million). This corresponds to an equity ratio, i.e. total equity in per cent of balance sheet total, of 67.5 per cent (31 December 2022: 61.7 per cent). Equity decreased comparing 30 June 2023 with 31 Decem- ber 2022 mainly because of the realised share buyback transaction and the subsequent capital reduction in addition to the net loss for the first semester 2023.
During the first half year 2023, the net cash from operating activities amounted to CHF 1.7 million. Investment activities cash flow was mainly influenced by the early reimbursement of a EUR 30.5 million promissory note by EPH. The group used part of the cash flow from investment activities to reimburse external founding which was reflected in the cash flow from financing activities. Net cash and cash equivalents decreased compared to the previous period from CHF 8.3 million at the end of 2022 to CHF 6.7 million by mid-2023. Trading portfolio assets, held for short-term cash management purposes, amounted to CHF 8.8 million (31 December 2022: CHF 8.6 million).
VALARTIS GROUP HALF-YEARREPORT 2023| MANAGEMENT REPORT | 5
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Valartis Group AG published this content on 24 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2023 05:14:02 UTC.
