In This Article:
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NAV per Share Growth: Up 11.2% in Q1, reaching GEL115.97.
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Revenue: Increased by 21.2% to GEL431 million in Q1.
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EBITDA: Up nearly 46% in Q1.
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Cash Flow Generation: Increased by more than 25% in Q1; nearly 90% over the last 12 months.
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Share Buyback: 21 million shares bought back in 2025, representing over 27% of shares in issuance.
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Retail Pharmacy EBITDA Growth: 55.6% increase, reaching GEL24 million in Q1.
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Insurance Revenue Growth: 24%+ growth in medical insurance and 21% in P&C insurance.
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Healthcare Services EBITDA Growth: 47% increase in Q1.
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Liquidity: $58 million in cash, with expected dividends of $18 million from Bank of Georgia and Loan Finance Group.
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Dividend Income Outlook: Expected to receive GEL180 million+ in 2025.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Georgia Capital PLC (GRGCF) reported a strong NAV per share growth of over 11% in Q1 2025.
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The company's private portfolio companies showed exceptional performance with revenue up more than 20% and EBITDA up over 45%.
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The company has been aggressively buying back shares, purchasing 21 million shares since the beginning of 2025, which represents over 27% of shares in issuance.
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Strong cash flow generation was reported, with a 25% increase in Q1 and nearly 90% increase in net operating cash flow over the last 12 months.
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The company has successfully reduced its NCC ratio from 42.5% in 2019 to 13.5% in Q1 2025, indicating effective deleveraging efforts.
Negative Points
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The NCC ratio slightly increased by 0.7 percentage points due to the announcement of a $25 million buyback program.
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The NAV discount remains high at 47%, despite improvements from a peak of 66% during COVID times.
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Inflation pressures are present, with inflation exceeding the target at 3.4% in April, driven by food prices.
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The company faces challenges in the renewable energy sector, with projects being delayed and requiring resolution.
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The healthcare services business experienced a negative impact on net debt due to timing differences, although this is expected to reverse in future quarters.
Q & A Highlights
Q: How will the strong real wage growth impact your businesses? A: Irakli Gilauri, CEO: Despite salary inflation, our revenue growth outpaces salary growth, resulting in positive operating leverage. Management changes have also positively impacted performance, contributing to strong results beyond macroeconomic factors.
Q: What should we expect regarding capital allocation once the current buyback program is finished? A: Irakli Gilauri, CEO: Our strategy is to buy back shares if they are cheaper than investing in new opportunities. We aim to reduce leverage over time, with a minimum cash requirement of $20 million at the holdco level. Investments in renewables and education are planned, with clarity expected in the next 6 to 9 months.