Private equity giant 3i Group hailed an “encouraging” start to the year with star performer Action, the Dutch supermarket, helping to drive the strong performance.
The firm’s net asset value (NAV) per share rose four per cent to 2,167p at the end of June, up from 2,085p at the end of March.
The performance was largely driven by Action, which reported net sales of €3.2bn and an operating earnings before interest, taxation, depreciation and amortisation (EBITDA) of €374m
In the first half of the year as a whole, Action’s operating EBITDA is 23 per cent ahead of last year.
“Action had a good first half of 2024, with net sales and operating EBITDA ahead of budget and prior year, despite a continued focus on price reductions and the impact of softer seasonal sales in a rather wet and cold June across north western Europe,” Simon Borrows, chief executive, commented
“We are confident that Action will continue to perform well in the second half of 2024,”Borrows continued.
3i’s stake in Action now stands at 57.6 per cent after the firm successfully completed a fundraising at the end of the quarter, raising €2.1bn. Action made up 65 per cent of 3i’s assets at the end of March.
“The successful completion of another sizable refinancing reflects Action’s impressive growth and strong cash generation,” Borrows said.
3i said it continued to see “good performance” across the rest of its portfolio, including at some firms that saw weaker trading in 2023.
During the quarter, the firm completed four bolt-on acquisitions across the portfolio, including one for Royal Sanders, the manufacturer of personal care products. It also agreed the realisation of its stake in nexeye in April for €452m, which is expected to complete at the end of July.
3i highlighted strong performances from Royal Sanders and European Bakery Group. It also cited Audley Travel, who’s booking numbers in the first half were ahead of pre-padenmic levels.