In 2024, NOVA Group (NOVA) doubled its investments to UAH 8.5 billion compared to 2021, said NOVA Chief Financial Officer Petro Fokov.
“NOVA Group’s investments this year (2024 – IF-U) will amount to UAH 8.5 billion. This is twice as much as the investments in 2021,” he said at the Ukrainian CFO forum on Thursday.
According to the CFO, the group is investing in areas that offer the opportunity to increase the speed, ease and reliability of delivery.
Fokov explained four main components of NOVA Group’s investment program: the development of the network of branches and post offices in Ukraine, including the opening of new branches, the repair and modernization of existing branches, and the construction of shelters and security capsules, especially in branches located in border areas.
Another component is investments in the automation of sorting centers.
“These are primarily new services such as fulfillment – logistics outsourcing, in which an online shop hands over the goods to a logistics service provider for storage and picking,” says the CFO of the NOVA Group, adding that this service can significantly speed up the delivery of shipments to customers.
Energy independence is an important part of NOVA’s investments. The group invests in solar panels and gas cogeneration to generate electricity for its own needs.
Mr. Fokov also highlighted investments in international business: NOVA Group operates in 15 countries. “Already this year, our first foreign country has made a profit, although most have not yet – they are still approaching the break-even point,” Fokov said.
In addition, NOVA allocated UAH 1.5 billion to the Armed Forces of Ukraine.
The CFO cited the group’s own and borrowed funds as the main sources of investment financing. In particular, this is a loan from the European Bank for Reconstruction and Development (EBRD) in the amount of UAH 3 billion, which was taken out in 2024.
“This year we signed a UAH 3 billion contract with the EBRD. We received our first loan six years ago for a minimum amount of UAH 180 million. We built the facility and repaid the loan on time, so now we have a solid (credit – IF-U) history worth UAH 3 billion,” explained Fokov, adding that the EBRD has provided loans to the NOVA Group in Hryvnia granted.
The group also borrows from commercial banks, cooperates with 10 leading Ukrainian banks and pursues a strategy of unifying banking clauses.
“As I said, we have 10 partner banks and each of them has its own requirements that need to be met. And it’s quite difficult when you have 10 different covenant systems and have to ensure 100% compliance. Our strategy is to fully unify the covenants of all our business partners… We have taken the EBRD’s most developed system of financial indicators as a basis and offer our partner banks with whom we work to join this system or select requirements from this menu . So far we have succeeded… I advise all CFOs to try to implement such a policy,” Fokov said.
In his opinion, the banks’ approval depends on the size and reputation of the company.
“If you have a good reputation, it’s easier because you have some negotiating power. Or you have a partner like the EBRD or other international financial institutions,” said the NOVA finance director.
The third component of financing the NOVA investment program is hryvnia bonds issued by the group, Fokov said. With the issuance of the bonds in January 2023, the group will be the first to raise funds again through this type of debt financing after the full invasion, he said.
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