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Preliminary Financial Results as of December 31, 2023

Lion Capital concluded the year 2023 with a robust financial position, boasting a net profit that exceeded the level set by the income and expenses budget. This achievement is particularly noteworthy given the backdrop of volatility and unforeseeable macroeconomic shifts. Lion Capital’s activities in 2023 followed the directions outlined in the activity plan approved by the shareholders, with primary investment objectives focusing on maintaining a diversified portfolio of assets under management, an active involvement in the management of the majority holdings, and fine-tuning the portfolio towards financial instruments that benefit from an inflationary environment.

The value of Lion Capital’s total assets, according to the preliminary financial statements, is of RON 4,306m as of December 31, 2023, up 26.4% vs. the value for 2022-year end.

The Company embraced an active investment policy, making significant acquisitions throughout 2023, both as direct purchases of shares listed on the Bucharest Stock Exchange, and also financing acquisitions carried out by Lion Capital’s subsidiaries in the real estate segment.

During 2023, the Company recorded dividend income amounting to RON 152m, with RON 14.3m below the level of those achieved in 2022, decrease generated by the registration in 2024 of the dividend income related to the financial year 2022 at BRD – Groupe Société Générale. Interest income is up significantly compared to the previous year, resulting from diversification of interest-bearing assets (granting a variable interest loan to a subsidiary), holding variable interest rate bonds (with quarterly update) and accelerated interest rate growth on investments in bank deposits denominated in RON and EUR.

Net gain on investments amounts to RON 294m, being mainly the result of the evaluation of the financial assets in the portfolio measured at fair value through profit and loss (e.g. listed and unlisted shares – subsidiaries and associated entities, and fund units). The upward evolution in 2023 of the main listed issuers included in this category (VNC and BIO) positively influenced the level of this position, but also the progress of the fair value of unlisted holdings or without an active market (mainly of entities with a real estate profile).

The total expenses as of December 31, 2023, are slightly above those for the corresponding period of 2022, the increase being directly proportional to the net profit recorded for 2023. The increase in commission expenses is also the result of the upsurge of Company’s net assets value, depending on which a part of these commissions is determined, higher than the level recorded in the previous year.

The net profit as of December 31, 2023, amounting to RON 417m, is the combined effect of the impact of the net result from the measurement at fair value of the aforementioned holdings in the level of recurring income (dividends, interest) obtained by the Company.

Total comprehensive income as of December 31, 2023, amounts to RON 860m, reflecting the positive impact of the fair value increase of the portfolio of financial assets classified in the FVTOCI category (Assets at fair value through other comprehensive income – mainly the shareholdings in the financial-banking sector).

The Report in full is available on Lion Capital’s website, in Investor Relations › Financial Results section.