GBL H1 2025 slides reveal healthcare investments driving value despite NAV drop

Introduction & Market Context

Groep Brussel Lambert (EBR:GBLB), the Belgian investment holding company, presented its H1 2025 results on August 1, 2025, revealing a strategic pivot toward private assets that is beginning to bear fruit despite an overall decline in Net Asset Value (NAV). The company’s shares have shown resilience in 2025, currently trading at €75.70, significantly above its 52-week low of €61.55 and approaching its 52-week high of €77.00.

GBL’s presentation highlighted the company’s ongoing transformation from a traditional listed asset investor to a more balanced portfolio with increasing exposure to private markets, particularly in the healthcare sector. This strategic shift comes amid challenging market conditions that have impacted some of GBL’s listed investments.

Executive Summary

GBL reported a mixed performance for the first half of 2025, with its NAV per share declining to €107.75 from €115.15 at the end of 2024. Despite this decrease, the company achieved a Total Shareholder Return (TSR) of 16.1% for the period, supported by significantly enhanced shareholder distributions and strong performance in its healthcare investments.

As shown in the following comprehensive overview of key metrics:

The company maintained a strong financial position with a low Loan to Value ratio of 1.6% and substantial liquidity of €4.8 billion, providing ample firepower for future investments. GBL dramatically increased its dividend per share by 82% to €5.00, resulting in total dividend payments of €666 million, while also conducting €170 million in share buybacks and cancelling 5.2 million shares.

Detailed Financial Analysis

GBL’s NAV evolution reveals the impact of market volatility on listed assets, offset partially by strong performance in private investments. The company’s healthcare assets, particularly Affidea and Sanoptis, drove €441 million in value creation within the direct private asset portfolio.

The following chart illustrates the key factors affecting NAV during H1 2025:

The decline in NAV was primarily driven by a €912 million negative change in fair value of listed assets and €747 million in net disposals, including a strategic partial exit from SGS that generated €772 million in March 2025. These reductions were partially offset by the strong performance of direct private assets (€458 million positive contribution) and other factors.

GBL’s cash earnings reached €320 million for H1 2025, with consolidated net results of €44 million. Net dividends from investments decreased to €289 million from €334 million in the comparable period of 2024, reflecting portfolio changes.

Strategic Initiatives

GBL’s direct private assets have become a central focus of its strategy, with healthcare investments emerging as particular standouts. The performance of these assets demonstrates the success of this strategic pivot:

Affidea, with a NAV of €1,876 million, achieved impressive 21% sales growth (10% organic) and a 1.9x Multiple on Invested Capital (MOIC). Sanoptis similarly performed well with 15% sales growth (7% organic) and a 1.4x MOIC. However, Canyon faced challenges in the bicycle sector, with sales declining 5% and a MOIC of 0.7x.

The company’s portfolio remains highly diversified across sectors and geographies, providing resilience against market fluctuations:

GBL maintains significant positions across consumer goods, healthcare, services, industrial, and digital sectors, with investments spanning Europe and beyond. The company is the largest shareholder in 76% of its portfolio companies, giving it substantial influence over strategic direction.

Forward-Looking Statements

GBL outlined an ambitious mid-term strategy to generate and deploy approximately €7 billion in resources between 2024-2027:

This strategic trajectory involves continued disposals of listed assets (€2.6 billion expected), cash earnings (€1 billion), and distributions from GBL Capital (€1 billion). These resources will fund new investments primarily in private assets (€3 billion), shareholder returns (€3 billion), and additional investments in GBL Capital (€1 billion).

The company remains committed to delivering double-digit TSR per annum for the 2024-2027 period, driven by NAV per share growth and attractive shareholder distributions:

Management emphasized that GBL will continue to monitor market turbulence with discipline and vigilance while pursuing its strategic objectives. Operational priorities include active portfolio management, ongoing refinement of the acquisition strategy with sector focus, and optimization of internal processes and cost management.

Competitive Industry Position

GBL’s portfolio companies continue to show varied performance across different sectors. SGS (17% of portfolio) demonstrated resilience with 5.3% organic sales growth and an 80 basis point improvement in adjusted operating margin. Adidas (9% of portfolio) achieved 14% sales growth with double-digit increases across all markets and channels.

The healthcare assets stand out as particular bright spots in the portfolio. Affidea is positioned to become a key cancer care provider in Europe following recent acquisitions, while Sanoptis is establishing international leadership in its sector.

GBL’s portfolio diversification by sector and geography provides a balanced exposure to different market dynamics:

This diversification strategy helps mitigate risks while allowing GBL to capitalize on opportunities across multiple sectors and regions. The company’s low leverage and substantial liquidity position it well to navigate market uncertainties while pursuing its strategic transformation toward a more private asset-focused portfolio.

Full presentation:

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