Fram Skandinavien AB (publ) publishes interim report Q1 2025
Significant events during the quarter
As of the 30th of April 2025, the estimated total net asset value amounted to 78 mSEK, which corresponds to approximately 21 SEK per share. The closing price for the Fram B share as of the same date was SEK 6.65 per share. The NAV per share decreased by -18% compared to 31st of March 2025. The month-on-month decline in NAV was primarily driven by a one-off downward adjustment in the Carmudi NAV by ca. 30%.
The one-off adjustment is made in the form of applying a discount on the average GMV-based valuation multiple of the listed peer group of Carmudi’s trading business. The reason for the adjustment is that Carmudi’s latest quarter of trading GMV now is approx. 30% below the average quarter for the last twelve months (LTM) of GMV. Due to this significant difference in average quarterly GMV over past 12 months and the GMV of the latest reported quarter, the Group deems it prudent to apply this discount in order to not have the regular LTM-based valuation methodology overvalue Carmudi’s trading business.
In essence, the successively lowered base in the trading GMV (in order to reach profitability) is nothing new and should be well familiar to shareholders. That being said, now when a more stable lowered GMV base is established as of Q1, the Group deems it prudent to also reflect this proactively in the NAV valuation in order to not create a temporary excess valuation of the business (as the lowered base level of trading GMV annualizes into the LTM numbers). Even though Carmudi does not consider the trading business to be a key growth driver over the near term, it deems this quarter’s car trading GMV to be sustainable for the foreseeable period. Carmudi considers its car media & affiliates business its primary near term growth engine.
Fram has continued to make meaningful improvements in reducing losses across its portfolio. Carmudi reported positive net profit for the quarter, while EveHR recorded a net loss of -314 kSEK, reflecting a ca. 47% loss reduction from the same period last year.
Loss from continuing operations during this quarter was -913 kSEK, reflecting a 73% decrease compared to the same period last year.