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.
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
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
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.
