Velcan Holdings: First Half Results

Core Viewpoint - Velcan Holdings reported a significant decrease in net profit for the first half of 2025, primarily due to foreign exchange variations, despite stable turnover and operating costs [2][5]. Financial Performance - Turnover for the first half of 2025 was EUR 1.0 million, showing a 3% increase compared to EUR 1.0 million in the same period of 2024 [2]. - Net result for the first half of 2025 was EUR 0.6 million, a sharp decline of 85% from EUR 4.0 million in the first half of 2024 [2]. - Cash and financial instruments decreased by 3% to EUR 132 million as of June 30, 2025, from EUR 135 million at the end of 2024 [2]. - Consolidated equity remained stable at EUR 135 million [2]. Portfolio and Investment Insights - The portfolio gained EUR 10.8 million excluding forex effects, offset by EUR -8.2 million in currency losses, resulting in a net portfolio gain of EUR 2.6 million compared to EUR 6.1 million in H1 2024 [5]. - As of June 30, 2025, the asset composition included 33% equities, 30% sovereign bonds, 27% cash and equivalents, with the remainder in short positions, BRL/INR instruments, and private equity [5]. - The net cash position was EUR 74.6 million, excluding BRL and INR MM funds [5]. Operational Highlights - Revenue from the Rodeio Bonito hydropower plant in Brazil was EUR 1.0 million, reflecting a 3% year-over-year increase in EUR and a 19% increase in BRL, despite lower production due to drought [5]. - Operating costs remained stable at EUR -2.4 million, with depreciation and provisions at EUR -0.2 million [5]. Shareholder and Market Context - Shareholders' equity amounted to EUR 134.9 million as of June 30, 2025, slightly up from EUR 134.8 million at year-end 2024 [5]. - The company repurchased 32,328 shares for EUR 551,000 under a share buyback program initiated in January 2025 [5]. - The Board clarified that comparisons with other issuers on regulated markets are not relevant due to the distinct regulatory framework of Luxembourg's Euro MTF, where the company's shares are listed [5][11].