Core Holdings Update Q3 2022
CORE HOLDINGS UPDATE Q3 2022
MTI Investment SE publishes its Core Holdings Update Q3 2022
The company's core holdings update for Q3 2022, including a Net Asset Value (NAV) update, is now available on the company's website and attached to this press release. Link to the company's report page: https://www.mti-investment.com/financial-reports/
NB: MTI's core holdings updates should not be considered as formal interim reports. These updates do not include the consolidated result of the Group or the Parent company. For more information visit: https://www.mti-investment.com/financial-calendar/
The Net Asset Value is estimated at SEK 13.8 per share
The estimated Net Asset Value has decreased by 15.3% in the third quarter from SEK 15.9 to SEK 13.8 per share, driven primarily by multiple contraction in Ecohomes due to restructuring and reduced order intake, while other subsidiaries and associated companies showed resilient operating performance. During the third quarter (Q3), our total shareholder return was -17.5 percent, compared to the SIXRX return of -4 percent. MTI has primarily unlisted holdings.
More information on the distribution of NAV and which companies are included in the investment company's portfolio can be found in the attached core holdings update.The MTI share is listed on Nasdaq First North. The most recent share price for the MTI Investment share was SEK 3.95 as of the 17th of November 2022.
Important events during the 3rd Quarter of 2022
- Zanrec's plastic baling business became operational during the quarter. Baling plastic is usually necessary for recycling facilities to accept it. Around 13 tons of plastic from the Swop shops and hotels have been baled for sale, with a near-term aim to increase to 20 tons per month. Zanrec is looking to expand its use of collection agents across the island to increase the amount of plastic that can be baled.
- Shambani Milk secured a three-year term loan of approximately USD 86,000 from CRDB Bank PLC. The funds are being invested in the acquisition of trucks and distribution.
- Shambani also managed to increase the shelf life of its Mtindi products by eight days. Thus, the new shelf life is 36 days, which gives sales agents more confidence to stock and sell Shambani Mtindi.
- MTI's subsidiary Atsoko International AB completed the divestment of its ownership in Atsoko Tanzania Limited (Atsoko) through a management buy-out.
- MTI announces that Mr. Harry Tuluhungwa is the new CEO of Ecohomes Company Limited, replacing former CEO and co-founder Eric Chonjo.
Financial summary Core Holdings
| MTI's Core holdings | MTI's ownership | Revenue Q3 2022 (TEUR) | Revenue Q3 2021 (TEUR) | Diff % |
| Ecohomes Co. Ltd | 77% | 543 | 276 | +97% |
| Zanrec Plastics Co. Ltd | 61% | 95 | 73 | +30% |
| Shambani Milk Ltd | 20% | 197 | 119 | +65% |
- Ecohomes' revenue in Q3 amounted to TEUR 543 (TEUR 276), an increase of 97% compared to the same period the previous year.
- Zanrec's revenue in Q3 amounted to TEUR 95 (TEUR 73), an increase of 30% compared to the previous year.
- Shambani Milk's revenue in Q3 2022 amounted to TEUR 197 (TEUR 119), an increase of 55% compared to the same period the previous year.
Words from the CEO
"During the third quarter, our core holdings showed an average growth of 61% compared to Q3 of last year. Zanrec has an increased focus on plastic collection, where our goal is to collect 20 tonnes of plastic per month. Ecohomes has a new CEO in place and has done a complete overhaul and improvement of the internal processes. Shambani Milk showed strong growth by securing deliveries of milk and by also increasing the shelf life of its Mtindi products by 8 days. The newly initiated MTI Advisory AB has in partnership with Ester Foundation successfully launched one of the first Female Diaspora Entrepreneur Accelerators in Sweden. The Fintech startup Mtaji received its Microfinance Tier II license and is accelerating its growth journey. According to the African Development Bank's East Africa Economic outlook 2022, the region is seeing a robust recovery in growth post covid. The Russia-Ukraine War which puts pressure on global food and energy prices, can slow economic growth, but stock markets in East Africa show resilience. Lastly, In the weeks following the third quarter, we announced an investment in the sustainable protein company Chanzi (press release) and we also concluded the investment in Techbridge (press release). Lastly, do not forget to join us on a brief investor trip to Zanzibar, Tanzania in mid-January (information on the event).
Pontus Engström
CEO MTI Investment
For additional information
Pontus Engström, CEO, MTI Investment SE
[email protected]
+46 70 716 55 38
Certified Adviser
The Company's Certified Adviser is Mangold Fondkommission AB
The following documents can be retrieved from beQuoted
PR-Core-holdings-update-Q3-2022-MTI-Investment-SE.pdf
Core-holdings-update-Q3-2022-MTI-Investment-SE 18 11 2022.pdf
About MTI Investment
MTI Investment SE is a Nordic investment and venture-building company, founded in 2014 by a team with extensive experience in emerging markets with the aim of investing in East African small and medium-sized enterprises ("SMEs") with high value-adding potential. The Company is active in the expansive East African market. By being a long-term and active owner, MTI Investment helps its portfolio companies grow faster and become more profitable. The Company invests primarily in innovative and scalable companies with the potential for a significant positive impact on society.
