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Key Points

NAV update: NAV per share was flat in Q1 (up 2.1% in GBP) but management says NAV has recovered to deliver >9% year-to-date growth (9.2% in GEL), driven by a rebound in Lion Finance Group (LFG) share price and strong private-portfolio performance. Strong operating momentum: Large private holdings reported an "exceptional" quarter with 13.7% top-line growth and 27% YoY EBITDA growth; portfolio highlights include pharmacy EBITDA +20.5% to a record GEL 29m, healthcare EBITDA +16% to GEL 27m, and insurance revenues +27% with profits +70%. Returns and balance sheet: Georgia Capital repurchased $22m of shares in Q1 (475,000 shares), has bought back >one-third of issued capital and narrowed the NAV discount to 16%, while ending March with ~ $85m liquidity, $50m gross holdco debt (net cash ~ $35m) and guidance to continue buybacks, deleverage and collect >GEL 200m of dividends in 2026. Interested in Georgia Capital PLC? Here are five stocks we like better.

Georgia Capital (LON:CGEO) said its net asset value (NAV) per share was flat in the first quarter, while emphasizing strong operating momentum across its major private holdings and continued progress on share buybacks and deleveraging.

Q1 NAV and portfolio drivers

Management said NAV per share was unchanged in Q1, though it increased 2.1% in pound sterling terms. The company attributed the flat quarter primarily to a decline in the share price of Lion Finance Group (LFG) during the period. Management said LFG’s share price has since recovered, helping drive “more than 9%” NAV per share growth year-to-date, including 9.2% year-to-date growth in Georgian lari (GEL) terms.

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In discussing the quarter’s NAV bridge, management said LFG contributed a negative 0.6% to NAV per share, while private large portfolio companies contributed nearly 3% positively. A change in valuation multiples was a nearly 1% negative, emerging and other portfolio companies declined by 0.5%, buybacks added 0.3%, operating expenses were a 0.3% drag, and “other” contributed 0.9%.

Management also pointed to an “exceptional” quarter for large portfolio companies, citing 13.7% top-line growth and 27% year-over-year EBITDA growth. The CEO said the company applies “pretty conservative” valuation multiples to private holdings and expects operating performance to support NAV growth over time.

Macro backdrop and market positioning

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The CEO described Georgia’s macro environment as “firing on all cylinders,” citing 7.5% real GDP growth in 2025 and monthly readings of 7.9% in January and 8.8% in February. He attributed some of the momentum to stronger trade and logistics activity and inward investment, including flows tied to regional geopolitical developments.

Story Continues

He highlighted record foreign exchange reserves of $6.3 billion and said the current account deficit reached what he described as Georgia’s lowest level in 35 years at -2.6%. Inflation was described as “manageable” at 4.3%, while the policy rate was said to be 8%.

Capital returns, discount, and balance sheet

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Georgia Capital continued buying back shares in the quarter, repurchasing 475,000 shares. Management said buybacks totaled $22 million in value during Q1 and that, cumulatively, the company has bought back “more than one-third” of its issued share capital. The CEO said the company would continue buybacks and noted the NAV discount had narrowed to 16%, which he called a historically low level.

The company also updated investors on leverage and liquidity. Management said net capital commitments (NCC) were around the mid-single digits as a percentage of NAV, and reiterated its goal to eliminate holding company leverage. The CEO said gross holdco debt is $50 million and “we may delever it in this year.”

CFO Giorgi Baratashvili said that despite spending roughly $22 million on buybacks and paying a half-year bond coupon, Georgia Capital ended March with about $85 million of liquidity and $50 million of gross debt, implying net cash of around $35 million.

Portfolio company performance: pharmacy, healthcare, and insurance

Retail pharmacy. Retail pharmacy CEO Tornike (and Nikoloz Shurgaia, as introduced) said the business remained the largest player in Georgia’s organized retail pharmacy market with around 34% market share based on 2024 figures. He said retail accounts for around 85% of revenue, with two core brands (GPC and Pharmadepot) plus franchise brands The Body Shop and Alain Afflelou Optics, and operations in Armenia and Azerbaijan.

He said the group added five pharmacies in Q1 (including one in Armenia) and ended March 2026 with 458 pharmacies, 14 Body Shop stores, and five optics stores. Retail revenue rose 8.6% year-over-year, supported by 4.5% same-store revenue growth and an 11% increase in average bill size. Wholesale revenue grew 6.7%. Gross margin reached a record 34% in Q1 2026, up 1.7 percentage points year-over-year.

Pharmacy EBITDA rose 20.5% year-over-year to a record GEL 29 million. Tornike said EBITDA-to-cash conversion was 114%, above a 90% target, and leverage was “1 time” adjusted net debt to last-twelve-month EBITDA, below a 1.5x target.

Healthcare services. Management said outpatient revenue grew 17% in Q1 2026, lifting outpatient share of total revenue by 1.4 percentage points to 46.2%. The business cited several clinical capability additions, including neuronavigation in two large hospitals and catheterization labs in two regional hospitals, as well as opening what it said is Georgia’s first human milk bank in Batumi. The company also said it recruited more than 60 physicians in Q1 and expanded its lab retail network to 12 branches.

Healthcare EBITDA grew 16% year-over-year to GEL 27 million, with EBITDA margin rising to 20.4%. Hospital occupancy declined from 75% to 71%, which management attributed to a lighter flu season; it noted flu-related admissions typically carry above-average margins. On cash conversion, management said Q1 reflects seasonality in state collections and expects improvement in the second half of the year.

Insurance. The insurance CEO (also named Giorgi in the transcript) said insurance revenues increased 27% in Q1, while profits grew 70%, with record-high revenues “on the base of last year’s high results.” He said property and casualty (P&C) and medical insurance each had 34% market share. He reported P&C revenues up 13%, profits up 27%, and ROE at 32%. In medical insurance, he said revenues grew 37% and profits rose 200%, with ROE “almost 50%.”

He also pointed to a new requirement that foreigners entering Georgia must buy travel insurance, which he said added GEL 1.5 million of revenue. He said the insurance business paid GEL 5.5 million in dividends to Georgia Capital in Q1.

Valuation updates, dividends outlook, and strategic priorities

Baratashvili said Q1 and Q3 are in-house valuation quarters and that the portfolio value was around GEL 5 billion, split roughly evenly between LFG shares and private portfolio companies. He said valuation multiples were flat in healthcare services, while multiples in retail pharmacy and insurance decreased slightly despite strong performance; he said the declines were partly due to results running ahead of prior discounted cash flow assumptions and that multiples could recover if performance continues.

He said LFG value declined by about GEL 100 million during the quarter, with roughly half due to dividends and buyback dividends received and half due to share price and exchange-rate effects, along with a small reduction in stake from 16.9% to 16.6%. Large portfolio companies saw valuation gains in excess of GEL 150 million, which were partly offset by multiple changes. He added that “other portfolio companies” decreased by GEL 24 million, including an impact from discontinuing two renewable energy pipeline projects.

On income, Baratashvili said Georgia Capital still expects dividend inflows in excess of GEL 200 million in 2026 across public and private holdings. He said GEL 40 million had been received so far, from LFG and the insurance business, and that the pharmacy business would begin paying 2026 dividends in Q2.

During Q&A, management said it remains active on M&A in Georgia and is increasingly focused on Armenia, primarily through bolt-on acquisitions via existing portfolio companies. The CEO said the company does not view any holdings as “strategic assets,” adding, “if we can sell expensively, we sell it,” and stated a preference for divestments to strategic buyers when pricing is attractive. On buybacks, management argued the current discount remains accretive and said it plans to continue repurchases.

About Georgia Capital (LON:CGEO)

Georgia Capital PLC (“Georgia Capital” or “the Group” or “GCAP”– LSE: CGEO LN) is a platform for buying, building and developing businesses in Georgia with holdings in sectors that are expected to benefit from the continued growth and further diversification of the Georgian economy. The Group's focus is typically on larger-scale investment opportunities in Georgia, which have the potential to reach at least GEL 300 million equity value over 3-5 years from the initial investment and to monetise them through exits, as investments mature.

The article "Georgia Capital Q1 Earnings Call Highlights" was originally published by MarketBeat.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Georgia Capital logo

Key Points

NAV per share surged, rising 14.1% quarter‑over‑quarter in Q4 and 61% for the full year, driven mainly by Lion Finance Group and strong private‑portfolio performance, with aggregate Q4 revenue up ~12% and EBITDA up ~18% (28.6% for the year). Management accelerated capital returns, completing a GEL 300m buyback early and committing ~80% of a new GEL 700m plan within six months while executing bond redemptions and share repurchases; net capital commitment fell to record lows (~2–2.3%) and is expected to remain well below the 10% over‑cycle target even after a further $50m buyback (~5% NCC). Operating divisions remain robust—retail pharmacy, insurance and healthcare all posted double‑digit revenue and EBITDA growth (e.g., pharmacy EBITDA +26.7%, healthcare EBITDA +18%)—as total portfolio value topped GEL 5 billion and the holding company reports about $90m cash (roughly $40m net cash) with dividend inflows expected to exceed GEL 200m. Interested in Georgia Capital PLC? Here are five stocks we like better.

Georgia Capital (LON:CGEO) executives highlighted strong net asset value (NAV) per share growth, accelerating capital returns, and improving balance sheet flexibility during the company’s latest results call, with management pointing to solid operating momentum across its large private portfolio companies and continued strength in Georgia’s macro backdrop.

NAV per share growth and portfolio performance

Management said NAV per share, described as a key metric for the group, increased 14.1% quarter-over-quarter in Q4 and rose 61% for the full year. The company attributed the annual increase primarily to Lion Finance Group’s performance and “strong performance” in its private large portfolio.

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In Q4, management said the increase was driven by a 10%+ share price rise in Lion Finance Group and 3.5% growth in the private large portfolio companies. Buybacks added “nearly 1 percentage point” to Q4 NAV per share growth, and management noted that, based on Lion Finance Group’s share price performance, its “live” NAV per share was up around 20%.

Across the private portfolio, management reported aggregate Q4 revenue growth of nearly 12% and full-year revenue growth of 15%, while EBITDA rose nearly 18% in Q4 and 28.6% for the full year. Operating cash flow for the large portfolio companies increased 15%, and aggregate cash balances were up about 25% year-over-year, according to the presentation.

Capital returns and leverage

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Story Continues

The company emphasized rapid execution against its capital return targets. Management said it completed a GEL 300 million buyback program more than a year earlier than anticipated and has moved quickly on a new GEL 700 million capital return program launched about six months ago.

As described on the call, capital return actions have included:

Early redemption of $100 million of bonds Repurchase of GEL 138 million worth of shares Launch of another GEL 134 million share buyback program

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Management said it has “nearly did and committed 80%” of the GEL 700 million plan within six months, versus an initial goal to complete the program by the end of 2027. Executives said they expect to provide an update in 2026 on whether the program will be extended, ended early, or replaced with a new one.

Georgia Capital also discussed a completed $50 million buyback program and said it was starting another $50 million share buyback program that would run for “a couple of months.”

On leverage, management said the group’s net capital commitment (NCC) ratio declined to record lows, cited as “nearly 2%,” and later referenced at 2.3%. After announcing the $50 million buyback, management said the ratio would adjust to around 5%, still below the company’s 10% over-the-cycle target. Executives described the holding company as now “under-levered” and reiterated a preference to keep holdco leverage low, while leaving room to use debt for a major opportunity with a clear deleveraging plan.

Operating updates: pharmacy, insurance, and healthcare

Retail pharmacy: The retail pharmacy CEO said retail remains the core business at roughly 75% of revenue, with wholesale described as the fastest-growing segment and international operations currently limited in Armenia and Azerbaijan. Based on 2024 figures, management said the company is the largest player in Georgia’s organized retail pharmacy market with about 34% market share.

In Q4, the pharmacy business added 50 new pharmacies, including two in Armenia, ending 2025 with 453 pharmacies. Retail revenue grew 11.6% in Q4 and 7.6% in 2025, supported by same-store revenue growth of nearly 9% in Q4 and 6.3% for the year. Wholesale revenue rose 22.6% in 2025. The CEO reported gross margin improvement to 33.2% in Q4 and said EBITDA increased 26.7% for 2025 to a record GEL 103 million. The company reported 93% cash conversion from EBITDA and adjusted net debt of 1.3x LTM EBITDA. The pharmacy business distributed GEL 15 million in dividends in Q4 and GEL 35 million for the year.

Insurance: Management said insurance revenues rose 10% in Q4 and 23% for 2025, while pretax profit increased 18% in Q4 and 22% for the year. Net premiums written grew 19% in Q4 to about GEL 100 million and increased 25% for the year, exceeding GEL 400 million.

In P&C (Aldagi), management cited market leadership with roughly 34%-35% market share and said Q4 revenues grew 17% and full-year revenues nearly 20%. ROE was described as “almost 34%,” and the business paid more than GEL 8 million in dividends in Q4 and nearly GEL 20 million for the year. In medical insurance (Imedi and Ardi), management cited 33% market share, net premiums written growth of 28% in Q4 and 35% for the year, and a 17% tariff increase in Q4. The health insurance unit paid GEL 9 million in dividends and nearly GEL 14 million for the full year, and management said it secured $50 million of tenders expected to incept in Q1 2026.

Healthcare services: The healthcare CEO said outpatient revenue grew 23% in 2025, with outpatient share rising to 43% of total revenue. The business introduced new specialties including arthroscopy, sports medicine, and interventional cardiology. Management reported 18% EBITDA growth in 2025 and an EBITDA margin of 19.5%, with full-year EBITDA of GEL 93 million, up 35% year-over-year. Net debt to EBITDA declined from 4.4x to 3.7x in 2025. Management said it believes a 25% EBITDA margin is achievable over the mid-term.

Valuation approach, liquidity, and dividends

The CFO said an independent valuation firm performed full-year valuation analysis for the large portfolio companies, audited by independent auditors. Management said roughly 50% of the portfolio is Lion Finance Group, about 40% is in large private portfolio companies, and the remaining 10%-11% in emerging and other businesses. The company said it relies primarily on discounted cash flow valuations based on expected future cash flows.

Georgia Capital said total portfolio value exceeded GEL 5 billion for the first time, driven by an increase in Lion Finance Group’s value (around GEL 300 million+) and GEL 133 million of growth in large private portfolio companies. The CFO said retail pharmacy remains the largest private portfolio holding at GEL 870 million.

On liquidity, management said holding company debt declined from $150 million to $50 million, leaving only locally issued bonds maturing in 2028. The company reported about $90 million of cash, implying roughly $40 million of net cash.

Management also said it expects dividend inflows to remain strong and stated that it expects dividends to continue to exceed GEL 200 million, with dividend income per share continuing to grow, aided by the reduced share count.

Q&A: investments, Lion Finance exposure, OpEx, and real estate

In Q&A, executives said they are seeing more investment opportunities as the discount to NAV narrows, but emphasized they do not want to “force investment.” Management said it is more “bullish” on bolt-on acquisitions within large portfolio companies and is open-minded to expansion outside Georgia for those businesses.

Asked about the remaining capital return actions—buybacks versus retiring the remaining bond—management said both are on the table and indicated that if the NAV discount remains around 25% after the current buyback, additional buybacks could be preferred.

On Lion Finance Group, management said decisions around stake reductions are “purely” driven by PFIC considerations and that there is no explicit limit on Lion Finance’s weight in the portfolio beyond avoiding PFIC status.

On operating expenses, the CFO said the company guides to OpEx at 75 bps of NAV, expecting a similar structure in 2026, potentially implying a slightly higher absolute figure versus 2025’s GEL 47 million.

Addressing the Georgian property market, management said it did not view the market as being in a bubble but acknowledged risks of oversupply and said the company is cautious about taking on large real estate development projects.

About Georgia Capital (LON:CGEO)

Georgia Capital PLC (“Georgia Capital” or “the Group” or “GCAP”– LSE: CGEO LN) is a platform for buying, building and developing businesses in Georgia with holdings in sectors that are expected to benefit from the continued growth and further diversification of the Georgian economy. The Group's focus is typically on larger-scale investment opportunities in Georgia, which have the potential to reach at least GEL 300 million equity value over 3-5 years from the initial investment and to monetise them through exits, as investments mature.

The article "Georgia Capital H2 Earnings Call Highlights" was originally published by MarketBeat.

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