Letter from the CEO
The past five years have presented challenges in many areas in which we operate. 2024 was no exception, with significant geopolitical tensions and global macroeconomic uncertainty. As we enter a new year, the full-scale war between Ukraine and Russia continues, Europe is struggling with competitiveness, and Trump’s administration has rapidly contributed to increased uncertainty for global trade and international relations.
Despite these challenges, we are pleased to observe that Ferd’s strategic direction remains both robust and correct. We ended 2024 with a record-strong balance sheet, a total return of 12 percent, and a value increase of NOK 5.5 billion. Our privately-owned portfolio companies saw earnings growth of 19 percent, while our publicly traded companies increased their value by 25 percent. For the first time, our value-adjusted equity has surpassed NOK 50 billion.
For the first time, our value-adjusted equity has surpassed NOK 50 billion.
Last year, our companies navigated various scenarios. Our largest and oldest investment, Elopak, experienced record-high demand for their sustainable packaging solutions in Europe, North America, and India. The share price rose by 50 percent over the past year. For other companies in the consumer market, last year remained challenging. Brav and Mestergruppen have seen a combined revenue decline of between 10 and 20 percent over the past two years, requiring several rounds of demanding cost cutting programs. For companies exposed to digitalization and energy, the development has been significantly stronger. Simployer, Norkart, and mnemonic all show solid growth and profitability. Aibel and Interwell have increased revenue by over 30 percent over the past two years, and more than half of Aibel’s order backlog is now directed towards renewable energy. Ferd Real Estate is well underway with major and important regulatory processes at Marienlyst and Trekanttomten. The office building, Hieronymus, is fully leased at good rental rates, and we are ready to start sales of several new housing projects in 2025.
Being an active and long-term owner also means enduring adversity. We use our investment capacity to go against the tide and invest when it is most difficult.
Ferd contributed capital to some of our businesses in 2024 and as owners we worked closely with all our portfolio companies. Being an active and long-term owner also means enduring adversity. We use our investment capacity to go against the tide and invest when it is most difficult. Among other things, we have increased our ownership in Mestergruppen who over the last few years has acquired competitors and expanded their business areas.
We are prepared for volatile markets and a potential negative macroeconomic development in 2025, but we also see attractive opportunities for continued growth and value creation for Ferd and the companies we own.
Going forward, we will continue to focus on long-term, active ownership in solid companies that have the potential to grow in their markets.
Going forward, we will continue to focus on long-term, active ownership in solid companies that have the potential to grow in their markets. We will keep on focusing on fewer and larger investments, so that we are even better positioned to influence positively and pursue opportunities. We will continue to seek international exposure. And we will maintain our strong liquidity position, which both gives us the ability to act quickly and creates security in uncertain times.
There are now over 20,000 employees in our portfolio companies, and we are very grateful for the impressive efforts they make every single day. Ferd’s strength lies in the breadth of our portfolio, our skilled employees, and the solid systems we have built over time. Together, we will manage to navigate, adapt, and further develop through volatile markets and uncertain times. We have never been in a better position to create enduring value and leave clear footprints.
Together, we will manage to navigate, adapt, and further develop through volatile markets and uncertain times. We have never been in a better position to create enduring value and leave clear footprints.
Morten Borge
CEO
