Georgia Capital (CGEO) Q3 2024 earnings summary

Executive summary

• Announced sale of 80% (effective 73.9%) stake in beer and distribution business to Royal Swinkels at a premium, generating at least $63 million in inflow and supporting a capital-light strategy.

• NAV per share (GEL) rose 6.2% quarter-on-quarter in Q3 2024 to GEL 83.41, driven by strong private portfolio performance and the beer business sale.

• Record quarterly revenues of GEL 584.2 million, up 11.9% year-over-year, and EBITDA up 16.5% year-over-year in Q3 2024.

• Record dividend inflow of GEL 190 million in Q3 and GEL 191.9 million in 9M24, with recurring dividend income at GEL 119.0 million.

• Operating cash flow more than doubled year-over-year to GEL 102.4 million in Q3 2024; share buybacks reduced outstanding shares by 22.5% since demerger.

Financial highlights

• NAV per share (GEL) increased to 83.41 as of 30-Sep-24, up 6.2% from 30-Jun-24; 11.6% CAGR since Dec-18.

• Portfolio value stood at GEL 3,468 million as of 30-Sep-24, with 91% externally valued.

• Private portfolio value up 4.6% quarter-on-quarter; listed and observable portfolio value down 8.3%.

• Net operating cash flow doubled in Q3 to GEL 202 million; nine-month cash flow also more than doubled to GEL 215 million.

• 2.0 million shares repurchased in Q3 2024 and October; total buybacks since demerger now 10.8 million shares (22.5% of peak issued share capital).

Outlook and guidance

• Management expects continued NAV per share growth over the medium to long term, supported by strong portfolio company performance and a resilient Georgian economy.

• Regular dividend guidance for the year remains at GEL 180 million, in line with last year.

• Anticipate further EBITDA growth in retail pharmacy and hospitals in Q4.

• Significant value creation potential supported by robust capital return program and deleveraging progress.

• Strong economic growth outlook for Georgia, with real GDP growth at 10.0% year-over-year in 8M24.