Georgia Capital PLC

NAV per share increased nearly 8% in Q3, specifically 7.9%. Revenue rose 13.5% in Q3 and 16.2% over 9 months, while EBITDA increased 29.5% in Q3 and 34% over 9 months. Free cash flow increased from $48 million in 2024 to $63 million pro forma after debt paydown, and per-share free cash flow rose 45.6%. The company ended the quarter with $77 million of liquidity and, for the first time since demerger, a positive net cash position, with gross debt of $20 million and net cash of $27 million. Management said it expects about GEL 200 million of dividends for 2025, up from the previously expected GEL 180 million, and said fourth-quarter cash inflows should lift full-year dividends to around that level. Retail pharmacy EBITDA grew 30.6% over 9 months to a record GEL 73.7 million; healthcare LTM EBITDA reached GEL 89 million, up from GEL 58 million in September 2024; insurance revenue grew 9% in Q3 and nearly 30% over 9 months, with pretax profit up 22% in Q3 and 23% over 9 months.

Irakli Gilauri struck an upbeat tone and emphasized that portfolio companies are outperforming, with Q3 operating momentum, NAV growth, and cash generation all tracking ahead of plan. He framed buybacks as the top capital allocation priority at the current NAV discount and said the company wants to keep reducing share count rather than issue shares. He also stressed that the healthcare bolt-on was opportunistic and not a change in strategy, and that the capital return program could finish early.

Giorgi Alpaidze said portfolio valuations were updated using internal mechanisms aligned with Kroll’s semiannual process, and that portfolio value increased by GEL 100 million in the quarter. He highlighted that retail pharmacy contributed about GEL 51 million to NAV/P&L impact, healthcare about GEL 40 million, and insurance about GEL 36 million. He also said liquidity finished at $77 million, gross debt was only $20 million, and the group was in a positive net cash position of $27 million. On dividends, he said full-year inflows are now expected to be around GEL 200 million, versus the prior GEL 180 million expectation, and that per-share dividend inflows should grow about 31% because of the share count reduction.

Analysts focused on capital allocation, asking whether buybacks or debt reduction should take priority, and management said buybacks are the priority at the current NAV discount. They also asked about future M&A, share issuance, dividend outlook, and PFIC-related Bank of Georgia exposure; management said it prefers not to increase share count, wants to remain a permanent capital vehicle, and may do more small, opportunistic bolt-ons rather than large acquisitions. On insurance, analysts probed the sustainability of exceptional ROEs and management said disciplined underwriting, actuarial pricing, and target loss ratios of 85% to 87% support those returns. Management also said no additional provisions are currently expected from litigation, and that inward reinsurance capacity with Hannover Re was increased from $5 million to $15 million.