Georgia Capital Achieves Record Portfolio Valuation Amid Accelerated Shareholder Returns

Georgia Capital's portfolio value exceeded 5B Lari in 2025, with 60% shareholder returns. Growth was driven by Lion Finance and strong operational performance across sectors.

Georgia Capital has reported an exceptional performance for the 2025 financial year, marked by two significant milestones. The investment group’s portfolio value surpassed five billion Lari for the first time, while shareholder returns, measured in local currency, exceeded 60 percent. This prompts an analysis of the drivers behind this rapid expansion and the sustainability of the company's aggressive capital return policy.

Robust Operational Performance Across Sectors

Beyond its financial holdings, Georgia Capital’s private portfolio companies demonstrated substantial operational strength. The pharmacy segment posted a record operating profit (EBITDA) of 103 million Lari, representing an increase of more than 26 percent year-on-year. Concurrently, the insurance business significantly expanded its premium income, crossing the 400 million Lari threshold.

The company's management has leveraged strong portfolio cash flows to accelerate returns to shareholders well ahead of schedule. From a 700 million Lari program originally slated to run through the end of 2027, approximately 550 million Lari had already been distributed by February 2026. This accelerated pace was partly funded by the complete divestment from a water utility company.

Lion Finance: The Primary Growth Engine

The standout contributor to this positive performance was the Lion Finance Group. By the close of 2025, this holding accounted for nearly half of the total portfolio value. The near-doubling of its share price consequently had an outsized impact on the net asset value (NAV) of Georgia Capital as a whole. In fact, this single success story was responsible for more than two-thirds of the group’s total NAV appreciation.

Share buybacks remain a central tool in this strategy. The company acquired a further 15,000 of its own shares on the London exchange just last Friday. Despite a slight pullback at the week’s close, the stock price of 3,695 GBX continues to trade near its recently achieved 52-week high.

Strengthened Balance Sheet Provides Flexibility

This aggressive capital return, coupled with the early repayment of $100 million in bonds, has led to a historically low net cash cost (NCC) ratio of approximately 2.3 percent. With this reinforced balance sheet structure, the company is well-placed to continue executing its remaining 150 million Lari buyback program throughout the current year.