Kinnevik’s net asset value reduces by 18 percent

In its nine-month report, Kinnevik said that net asset value of 78.8 billion Swedish krona (8.6 billion dollars) or 286 Swedish krona (31.4 dollars) per share, was down by 17.6 billion Swedish krona (1.9 billion dollars) or 18 percent, driven by fall in Zalando’s share price as well as Kinnevik's distribution of its shares in MTG during the quarter, effectively transferring 4.2 billion Swedish krona (0.4 billion dollars) or 15 Swedish krona (1.6 dollars) per Kinnevik share to shareholders.

"Zalando revised its guidance for 2018, as the extended and unusually hot summer period and a delayed switch to the fall/winter season weighed on revenue growth and adjusted EBIT. This clearly does not reflect Zalando’s ambition, and we remain confident of the company’s ability to deliver on its long term strategic plan," said Georgi Ganev, CEO of Kinnevik in a statement.

In September, Zalando announced that the company now expects revenue growth for the full year to be around the low end of its 20-25 percent target growth corridor (previously: in the lower half of such corridor) and an adjusted EBIT of 150-190 million euros (previously: at the low end of a 220-270 million euros target range).

The company said, net debt position increased, driven by investment activity, by 1.2 billion Swedish krona to 4.1 billion Swedish krona, corresponding to a leverage of 5 percent of portfolio value.

Picture:Facebook/Zalando