Lion Capital concluded 2024 with a strong financial position and net profit exceeding the level approved in the income and expenses budget, despite an environment marked by volatility and unforeseen macroeconomic developments. Throughout 2024, asset portfolio management was conducted in a complex and uncertain investment climate, characterized by elevated interest rates and heightened volatility in capital markets. This scenario necessitated a prudent and adaptive approach to achieve adequate performance.
In this context, in line with its investment strategy, Lion Capital S.A. focused on recalibrating its portfolio toward assets / financial instruments that benefit from an inflationary environment, continuing the restructuring of its portfolio by reducing minority exposures that do not align with the Fund’s investment strategy, while actively managing its majority holdings to drive business development and performance.
According to preliminary financial statements, Lion Capital’s total assets reached RON 4,841mn as of December 31, 2024, marking a 12.4% increase compared to the end of 2023.
The Company pursued an active investment policy throughout 2024, undertaking significant acquisitions both via direct purchases of shares listed on the Bucharest Stock Exchange (BVB) and through financing acquisitions executed by Lion Capital’s subsidiaries in the real estate segment.
During the year, the Company recorded dividend income of RON 194mn, up RON 42.5mn vs. 2023. Interest income also saw a significant rise as compared to the previous year, driven by the diversification of interest-bearing assets (including the provision of variable-rate loans to subsidiaries), holdings in interest-bearing bonds, and an accelerated increase in interest rates earned on deposits in banks denominated in RON and EUR.
Net loss on investments amounted to RON 21mn. This primarily reflects the fair value measurement of financial assets through profit and loss account (e.g., both listed and unlisted shares held in subsidiaries and associated entities, as well as fund units). The downward trend among the main listed issuers in this category (VNC and BIO) impacted the level of this position; however, while favourable movements in the fair value of fund units helped mitigate the net loss.
Total expenses as of December 31, 2024, exceeded those of the corresponding period in 2023. The rise in commission expenses is partly attributable to the increase in the Company’s net asset value, which underpins a portion of these fees, surpassing the previous year’s levels.
The net profit as of December 31, 2024, amounting to RON 162mn, primarily results from dividend and interest income recorded by the Company.
Total comprehensive income as of December 31, 2024, reached RON 497mn. This figure reflects the impact of the fair value of financial assets classified as FVTOCI (Assets at fair value through other comprehensive income – predominantly the holdings in the financial and banking sector).
The preliminary financial results are available on Lion Capital’s website, www.lion-capital.ro in Investor Relations • Financial Results section
