Georgia Capital (CGEO) Q4 2024 earnings summary

Executive summary

• NAV per share rose 15% quarter-on-quarter in 4Q24 to GEL 95.95, up 15.7% year-over-year, driven by strong portfolio performance and significant share buybacks.

• Operating cash flow and EBITDA grew sharply, with EBITDA up 53.3% in 4Q24 and 25% for the year; free cash flow reached $48 million in 2024.

• Major divestment of 80% equity in beer and distribution businesses completed, generating c.US$63 million in cash proceeds and boosting liquidity.

• Share buybacks accelerated, with over 12 million shares repurchased since demerger, reducing share count by 25.3%.

• NCC ratio improved by 3.1 percentage points to 12.8% at year-end, reflecting lower leverage and enhanced portfolio value.

Financial highlights

• Portfolio value up 8.5% quarter-on-quarter to GEL 3.8 billion in 4Q24; listed/observable portfolio value up 23.2%, private portfolio value down 0.4%.

• Recurring dividend income in FY24 was GEL 179.2 million, with a solid outlook for 2025 (180+ GEL million expected).

• Net income for FY24 was GEL 350.3 million, down 43.1% year-over-year due to lower fair value changes and investment returns.

• Cash and liquid funds surged to GEL 278.2 million at year-end, up 2.6x year-over-year, mainly from the beer business sale.

• Buybacks contributed 1 percentage point to NAV growth in the quarter.

Outlook and guidance

• GEL 300 million capital return programme ongoing through 2026, with GEL 159 million already repurchased and at least GEL 118 million remaining for future buybacks and dividends.

• Management expects continued NAV per share growth, supported by resilient portfolio performance and a robust Georgian economy.

• Targeting at least $50 million in debt reduction in 2025, with further share buybacks planned.

• Double-digit EBITDA growth anticipated in retail pharmacy and hospitals, with hospitals expected to grow EBITDA by 15–20% or more.

• Economic growth in Georgia is expected to moderate in 2025 amid regional uncertainties, but fundamentals remain strong.