Georgia Capital (CGEO) Q1 2026 earnings summary

Executive summary

• NAV per share was flat in GEL at 154.82 in Q1 2026, up 2.1% q-o-q in GBP, and rose 9.2% YTD to GEL 168.92 as of 27 April 2026, driven by strong private portfolio performance and Lion Finance Group's share price appreciation.

• Large private portfolio companies delivered 13.7% top-line growth and 26.9% y-o-y EBITDA growth, driving a 29.8% y-o-y increase in net operating cash flow, despite a challenging geopolitical environment.

• Lion Finance Group was promoted to the FTSE 100 Index, enhancing its visibility and reflecting superior performance.

• 475,000 shares were repurchased for $22 million in Q1 2026, with total repurchases since demerger reaching $268 million, or over one-third of issued share capital.

• Georgia's macroeconomic environment remains robust, with real GDP growth of 8.4% in early 2026 and record-high foreign exchange reserves.

Financial highlights

• Year-to-date NAV per share growth exceeded 9% in GEL terms, with a 27% five-year CAGR and 31.7% three-year CAGR as of 31 March 2026.

• IFRS net income for 1Q26 was GEL 26.0 million, with dividend income surging to GEL 39.6 million.

• Retail Pharmacy revenue grew 8.6% y-o-y, EBITDA up 20.5% to GEL 29 million, gross margin at 34%.

• Healthcare segment saw 13.9% revenue growth, 15.6% EBITDA growth to GEL 27 million, and EBITDA margin at 20.4%.

• Insurance revenues rose 27%, profits up 70–78%, net premiums up 54%, with ROEs at 32% (P&C) and 48% (medical).

Outlook and guidance

• Expectation of continued strong NAV per share growth, targeting 25%+ over the long term, with a defensively positioned and capital-efficient portfolio.

• Dividend inflows projected to exceed GEL 200 million in 2026, with GEL 39.6 million recurring dividend income in 1Q26.

• Ongoing focus on bolt-on acquisitions in Armenia and potential expansion into neighboring markets.

• Maintaining Net Capital Commitment (NCC) ratio below 10%.

• Macroeconomic conditions in Georgia expected to remain robust, with IMF forecasting 5.3% GDP growth for 2026.