Georgia Capital’s FY25: Big NAV Upswing, Bigger Buybacks
Georgia Capital has delivered a thumping set of FY25 numbers. Net Asset Value (NAV – the total value of assets minus liabilities) per share climbed 61.2% in GEL terms to GEL 154.68 by year-end, with a fresh US$ 50 million buyback now underway after completing the last one. The heavy lifting came from Lion Finance Group’s near-doubling share price and solid earnings momentum across the pharmacy, insurance and healthcare businesses.
Here’s what jumped out at me, why it matters, and what to watch next.
Key FY25 and 4Q25 numbers investors should know
| Metric | Result | Comment |
|---|---|---|
| NAV per share (GEL) | GEL 154.68 | Up 14.1% q-o-q and 61.2% y-o-y |
| NAV per share (GBP) | £42.44 | Up 13.9% q-o-q and 56.4% y-o-y |
| Total NAV | GEL 5,194,527k | Up 11.7% q-o-q and 43.9% y-o-y |
| Total portfolio value | GEL 5,074,885k | Up 9.4% q-o-q and 34.9% y-o-y |
| 4Q25 value creation | GEL 618,475k | Mostly Lion Finance Group (LFG) plus private portfolio gains |
| FY25 value creation | GEL 2,008,007k | Driven by LFG’s 97.5% share price rise |
| FY25 dividend income | GEL 225,534k | Includes GEL 139.9m from LFG |
| FY25 net income | GEL 1,870,441k | Adjusted IFRS basis |
| Cash & liquid funds | GEL 219,565k | Up 29.5% q-o-q |
| Gross debt | GEL 139,128k | US$ 50m outstanding sustainability-linked bonds |
| NCC ratio | 2.3% | Record low; down 3.1 ppts q-o-q |
| Shares outstanding | 33,582,800 | Down 10.7% y-o-y on buybacks |
What powered the surge in NAV per share
Listed engine: Lion Finance Group did the heavy lifting
LFG – Georgia Capital’s largest single asset – was the star. Its share price jumped 21.6% in 4Q25 and 97.5% across FY25, adding GEL 483.3 million to 4Q value creation and GEL 1.5 billion over the year. Even after trimming the stake to 16.9% to manage PFIC risk, GCAP booked GEL 139.9 million in dividends from LFG and still finished with a GEL 2.5 billion listed position.
Positives: LFG’s strong profitability and loan growth in Georgia and Armenia shone through, clearly supporting NAV. A small caution: ongoing sell-downs reduce future dividend capacity from LFG, though they also de-risk US tax exposure and lift liquidity.
Private core: pharmacy, insurance and healthcare all delivered
- Retail (pharmacy) – Q4 revenue up 11.0% and EBITDA up 17.5% y-o-y, helped by 8.9% same-store sales growth and a 1.8 ppts gross margin uplift to 33.2%. Equity value ticked up to GEL 869.7 million; implied LTM EV/EBITDA 8.1x.
- Insurance (P&C and medical) – Q4 pre-tax profit up 20.4% y-o-y; combined ratio improved for medical and held well in P&C despite mix-shift pressure on expenses. Equity value rose to GEL 528.3 million; implied LTM P/E 10.1x.
- Healthcare services – Q4 revenue up 15.1% and EBITDA up 17.8% y-o-y; equity value up 17.2% q-o-q to GEL 613.8 million; implied LTM EV/EBITDA 10.1x. The bolt-on of Gormed LLC adds reach and scale. The business also refinanced via a landmark GEL 350 million social bond.
Under the bonnet: Georgia Capital’s large private companies lifted aggregated Q4 revenue by 11.8% and EBITDA by 17.8% y-o-y. That operational oomph translated into GEL 153.6 million of Q4 value creation from the big three, partly offset by a GEL 18.4 million reduction across emerging and other assets.
Buybacks, balance sheet and the NCC ratio explained
Share buybacks were a major tailwind, adding 11.3 ppts to FY25 NAV per share growth. Georgia Capital completed the US$ 50 million programme in January (1.5 million shares for US$ 50.7 million / GEL 137.9 million) and has launched another US$ 50 million programme to run over nine months. Since the demerger, total capital returned stands at US$ 246 million.
NCC ratio – a handy gauge of near-term funding needs versus portfolio size – improved to 2.3%, a record low. Net cash stood at GEL 102.9 million, with cash and liquid funds of GEL 219.6 million against GEL 139.1 million gross debt. This gives management the flexibility to keep buying back shares and selectively invest, while staying disciplined.
Why it matters: if the shares trade below NAV (the company notes an intention to capitalise on a discount), buybacks can be highly accretive. Pair that with strong cash generation and lower leverage, and you’ve got a supportive set-up for per-share value growth.
Deep dive: performance across the private portfolio
Retail (pharmacy)
- 4Q25 revenue: GEL 258.1 million (+11.0%); EBITDA (ex-IFRS 16): GEL 28.8 million (+17.5%).
- Same-store revenue growth: 8.9%; average bill size up 9.2% to GEL 23.4.
- Gross margin: 33.2% (+1.8 ppts). Dividends to GCAP in 4Q: GEL 14.9 million.
- Store expansion: +15 in Q4 (453 pharmacies total), focused on efficient formats.
Opinion: strong pricing and mix, improved supplier terms and steady expansion all point to a well-managed growth story with cash generative traits.
Insurance (P&C and medical)
- 4Q25 insurance revenue: GEL 105.6 million (+9.8%); pre-tax profit: GEL 12.9 million (+20.4%).
- Combined ratio: P&C 90.9% (+1.0 ppts), medical 92.5% (-1.9 ppts). Solvency: P&C 175%, medical 141%.
- Dividends to GCAP in 4Q: GEL 17.3 million.
Opinion: underwriting discipline is biting, particularly in medical. P&C’s expense ratio drift bears watching, but overall profitability, solvency and pricing actions are moving the right way.
Healthcare services
- 4Q25 revenue: GEL 126.1 million (+15.1%); EBITDA (ex-IFRS 16): GEL 25.3 million (+17.8%).
- Momentum across hospitals, clinics and diagnostics; occupancy up sharply in regional/community hospitals.
- Net debt/EBITDA (ex-IFRS 16): 3.7x, improving from 4.3x y-o-y.
Opinion: the strategic tilt to higher-margin outpatient and specialty services, plus scale benefits and the Gormed integration, is showing through in both growth and valuation.
Emerging and other businesses: mixed, but strategic
The combined value of renewables, education, auto service, wine and real estate stands at GEL 573.8 million (-3.7% q-o-q). Operationally, education and PTI performed well; renewables saw softer FY generation offset by price; real estate had a strong Q4; wine improved on a low base. Dividends from renewables and auto service contributed GEL 5.5 million in Q4.
Macro tailwinds and valuation sensitivity
Georgia’s macro remained supportive in 2025: real GDP grew 7.5% y-o-y; current account deficit narrowed to 2.1% of GDP (9M25); reserves hit a record US$ 6.3 billion; public debt fell to 34% of GDP; the GEL strengthened. Management expects 2026 GDP growth around c.5.5%.
Important to note: a 100 bps increase in valuation discount rates would reduce the fair value of private equity investments by about GEL 250 million (circa 10%) based on 4Q25 sensitivities. This is a standard reminder that valuation marks are sensitive to rates and peer multiples.
What I like, what I’m watching
Positives
- Powerful NAV per share compounding – driven by both market performance (LFG) and genuine operating gains in core private businesses.
- Buyback firepower – completed US$ 50 million and launching another US$ 50 million, underpinned by net cash and a record-low NCC ratio.
- Cash returns – FY25 dividend income of GEL 225.5 million supports ongoing capital returns.
Watch-outs
- Valuation sensitivity – private asset marks can move with discount rates and multiples.
- Regulatory/legal items – settlement of the Imedi L case in cash (US$ 26.5 million); a GEL 20.0 million fine in the pharmacy business is under appeal; education minority litigation ongoing. Outcomes not fully predictable.
- LFG stake reduction – prudent for PFIC risk, but reduces future dividend base from the Bank over time.
The bottom line for shareholders
Georgia Capital ended 2025 in excellent shape: stronger NAV per share, cleaner holding-level balance sheet, and clear evidence of operating progress in the pharmacy, insurance and healthcare platforms. With a new US$ 50 million buyback ready to go and a supportive macro backdrop, the ingredients are here for continued per-share value creation. If the shares trade at a discount to NAV, that buyback becomes even more potent. I’d call this update decisively positive.
