3i Group (III) Q1 2025 TU earnings summary

Executive summary

• NAV per share increased to 2,167p (31 March 2024: 2,085p), with a total return of 4% for Q1 FY2025, despite a £113m negative FX impact.

• Action delivered strong growth, with net sales of €3,224m and operating EBITDA of €446m for the quarter, up from €2,701m and €374m year-over-year.

• Like-for-like sales at Action grew 9.0% YTD to P6 2024, with operating EBITDA up 23% to €843m compared to the same period last year.

• Portfolio companies outside Action, such as Royal Sanders and European Bakery Group, showed strong performance, with positive momentum in previously challenged assets.

• New €116m investment in Constellation agreed, four bolt-on acquisitions completed, and sale of nexeye for c.€452m expected to complete in July 2024.

Financial highlights

• Group NAV per share rose to 2,167p, with a total return of 4% for the quarter ended 30 June 2024.

• Action's LTM net sales reached €12,365m and operating EBITDA €1,775m, with a margin of 14.4% (P6 2024).

• 3iN's share price decreased 2% in the quarter, closing at 320p, with 3i's 29% stake valued at £862m.

• Total investment portfolio value was £22,452m at 30 June 2024, with the top 10 investments comprising 86% of the portfolio.

• Cash at 30 June 2024 was £336m, with total liquidity of £1,236m including undrawn credit facilities.

Outlook and guidance

• Confident in continued strong performance from Action in H2 2024, supported by recent refinancing and capital restructuring.

• Positive developments expected in assets that faced headwinds in 2023, with selective capital allocation ongoing.

• Sale of nexeye expected to complete by end of July 2024, providing further capital for reinvestment.