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Introduction & Market Context
Groep Brussel Lambert (BRUSSELS:GBLB) presented its Q1 2025 results on May 5, 2025, outlining a comprehensive strategic plan to generate and deploy €7 billion in resources through 2027. The presentation came as the company’s stock traded at €71.40, up 1.05% for the day, sitting close to its 52-week high of €73.75.
The investment holding company has undergone significant governance changes, with Ian Gallienne stepping up as Chairman, Paul Desmarais, Jr. moving to Vice Chairman, and Johannes Huth joining as Managing Director – a leadership evolution that was unanimously supported by the Board and approved at the May 2, 2025 General Meeting.
Executive Summary
GBL reported resilient cash earnings of €101 million for Q1 2025, though this represents a decrease from €149 million in the same period last year. The company’s Net Asset Value (NAV) per share stood at €111.17 as of March 31, 2025, down slightly from €113.30 at the end of 2024.
The company emphasized its solid financial position with a Loan To Value (LTV) ratio of 0.0% and a substantial liquidity profile of €5.6 billion, positioning it well for future investments. A standout announcement was the 82% increase in dividend per share to €5.00, creating what the company called an "enhanced base for steady growth in subsequent years."
Strategic Initiatives
GBL’s mid-term strategic trajectory centers on generating €7 billion in resources between 2024 and 2027 to finance private asset investments and shareholder returns. The company has already executed €2.4 billion in disposals, including positions in adidas and SGS (SIX:SGSN), with an additional €2.6 billion in disposals expected from both listed and private assets.
As shown in the following chart outlining the company’s resource generation and allocation plan:
The company plans to allocate these resources strategically, with approximately €3 billion earmarked for investments in new assets (with priority given to private assets), €3 billion for returns to shareholders through dividends and share buybacks, and €1 billion for investments into GBL Capital.
GBL’s direct private assets have shown mixed performance. Healthcare investments Affidea and Sanoptis have performed strongly with multiples on invested capital (MoIC) of 1.6x and 1.4x respectively, while Canyon has struggled with a 0.7x MoIC amid what the company described as a "challenging context and a one-off quality issue."
The following chart details the performance of GBL’s direct private assets:
Detailed Financial Analysis
GBL’s NAV per share decreased from €113.30 on December 31, 2024, to €111.17 on March 31, 2025. This 1.9% decline was primarily driven by the partial disposal of SGS shares and changes in fair value of listed assets, partially offset by positive performance in direct private assets.
The evolution of NAV per share is illustrated in this detailed breakdown:
Cash earnings for Q1 2025 came in at €101 million, down from €149 million in Q1 2024. This 32% decrease was primarily due to lower net dividends from investments (€126 million versus €160 million in Q1 2024) and higher interest expenses.
GBL Capital, the company’s platform for indirect private investments, contributed €25 million to cash earnings in Q1 2025, down from €32 million in the same period last year. The NAV of GBL Capital increased from €2,743 million at the beginning of the period to €2,810 million by the end of Q1 2025, with €107 million of new investments made during the quarter.
Portfolio Performance
GBL maintains a diversified portfolio across listed assets (55% of portfolio value), direct private assets (18%), and indirect private assets through GBL Capital (20%). The company is the largest shareholder in 79% of its listed portfolio companies, which include SGS (18% of total portfolio), Pernod Ricard (EPA:PERP) (11%), Imerys (EPA:IMTP) (10%), and Adidas (OTC:ADDYY) (10%).
The following comprehensive overview shows GBL’s portfolio composition:
The portfolio is well-diversified across sectors and geographies, with Consumer goods representing 25% of the portfolio, followed by Services (18%), Healthcare (18%), and Industry (12%). Geographically, Switzerland (25%) and France (23%) represent the largest exposures by company headquarters.
Among listed assets, SGS showed resilient performance with 5.6% organic sales growth in Q1, while Adidas delivered 13% sales growth and significant operating margin expansion. Pernod Ricard faced macroeconomic and geopolitical headwinds but managed to achieve 65 basis points of margin expansion in H1 2025.
Forward-Looking Statements
GBL has committed to delivering double-digit Total (EPA:TTEF) Shareholder Return (TSR) through a combination of NAV per share growth and increasing shareholder distributions. The company plans to maintain its enhanced dividend base of €5.00 per share while continuing its share buyback program with a new €500 million envelope approved at the May 2, 2025 General Meeting.
The company’s TSR strategy is illustrated in this straightforward equation:
Looking ahead, GBL’s dividend per share has increased significantly from €2.75 in 2021 to €5.00 in 2024, representing a yield of 7.6% based on the year-end 2024 share price. The company has also been active with share buybacks, deploying €1.9 billion from January 2022 through May 2025.
Management noted they will "continue to monitor market turbulence with discipline and vigilance" as they execute their strategic plan through 2027, balancing investments in private assets with continued shareholder returns.
Full presentation:
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