Georgia Capital PLC ("the Group") has published today its trading update for the third quarter and nine months of 2019. The trading update together with the supplementary financial information and investor presentation is available on the Group’s website at https://georgiacapital.ge/ir/financial-results. An investor/analyst conference call, organised by the Group, will be held today, on 22 October 2019, at 14:00 UK / 15:00 CET / 9:00 U.S Eastern Time. The duration of the call will be 60 minutes and will consist of a 15-minute update and a 45-minute Q&A session.

Management Commentary

“I am pleased to report that we had an excellent quarter in terms of operating cash flow generation and step up in capital allocations. Firstly, operating cash flow generation across the private portfolio companies increased by 44.7% y-o-y in 3Q19 and by 67% y-o-y in 9M19. Secondly, our investments - while remaining disciplined - were our highest in a single quarter as we successfully converted active pipeline deals into acquisitions. We made a bolt-on acquisition in the wine business, while also successfully closing the acquisitions of majority stakes in three leading Georgian private schools. We continue to have a robust pipeline and our outlook for 4Q19 and beyond remains strong as our private portfolio continues to grow.”

3Q19 and 9M19 performance highlights

  • Strong growth in private portfolio operating cash flow generation, up 44.7% y-o-y in 3Q19 (up 67% y-o-y in 9M19)
  • GEL 31 million in-kind dividend, finished commercial properties, received from Housing Development
  • Strong GEL 113 million investments during 3Q19 (GEL 176 million in 9M19)
  • GEL 16 million was allocated to the wine business for Alaverdi acquisition (100% stake), which added 244 hectares of vineyards and tripled its production capacity
  • GEL 40 million invested in securing high quality partnerships with three top schools with excellent management teams
  • GEL 53 million allocated to the hospitality and commercial real estate business, of which, GEL 22 million was cash for development of pipeline hotels and GEL 31 million was the value of allocated commercial properties
  • NAV per share up 12.9% to GEL 50.04 in 9M19
  • GEL 72 million increase in the market value of listed assets and GEL 138 million value creation in private portfolio
  • GEL 90 million spent on share buybacks, while 2.7 million shares were cancelled
  • NAV per share down 7.2% in 3Q19
  • GEL 174 million decrease in the market value of listed assets, while private assets created GEL 37 million value
  • GEL 32 million share buybacks, while 0.7 million shares were cancelled in Aug-19
  • Continued strong and sustainable growth in revenues and EBITDA across our private portfolio
  • Water Utility EBITDA up 19.7% in 3Q19 driven by tripling of electricity sales revenues
  • The beer business increased revenues by 52%, while posting first quarterly positive EBITDA of GEL 1 million

Conference call detail

Dial-in numbers:

30-Day replay:

Pass code for replays/Conference ID: 5267827

Pass code for replays / Conference ID: 5267827

International Dial In: +44 (0) 2071 928000

UK Freephone Dial In: 08082380667

UK Freephone Dial In: 08003767922

UK Local Dial In: 08445718951

UK Local Dial In: 08445718892

International Dial In: +44 (0) 3333009785

US: 18669661396

US: 1 (866) 331-1332

This announcement contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Georgia Capital PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct.