This article first appeared on GuruFocus .
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Total Return:13% for the half year.
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Net Asset Value (NAV) per Share:GBP 28.57 at the end of September, up from GBP 22.61 last year.
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Gross Investment Return:14% from private equity, 9% from infrastructure.
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Private Equity Earnings Growth:98% of the portfolio by value growing earnings in the 12 months to June 2025.
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Action Net Sales Growth:Up 17.4% in the first 9 months of the year.
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Action Operating EBITDA:Up 16.3% to EUR 1.563 billion.
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Like-for-Like Sales Growth:6.3% to the end of September.
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Net Sales to October:EUR 12.54 billion.
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Store Expansion:272 new stores added, aiming for 380 by year-end (13% increase).
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Action Operating Profit:EUR 2.3 billion LTM to end of P9.
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Action Debt Financing:EUR 1.6 billion raised, with pro forma leverage at 3 times.
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Dividend Payment:42.5p per share second dividend.
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Currency Impact:78p per share gain from foreign exchange translation.
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Cash Realization:GBP 391 million mainly from the sale of MPM.
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Private Equity Portfolio Value:GBP 27.1 billion at the end of September.
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Infrastructure Portfolio Value:GBP 2.2 billion.
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Net Debt:GBP 772 million, with gearing at 3%.
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Cash Balance:USD 777 million as of November 11, 2025.
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Dividend Policy:First FY26 dividend of 36.5p per share to be paid in early January.
Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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3i Group PLC ( TGOPF ) delivered a total return of 13% for the half year, demonstrating strong performance.
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The net asset value per share increased to GBP28.57 from GBP22.61, reflecting significant growth.
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The private equity portfolio showed a gross investment return of 14%, with 98% of the portfolio growing earnings.
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Action, a key investment, reported net sales up 17.4% and operating profit up 16.3% in the first nine months.
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The company successfully raised 1.6 billion in the US and European debt markets, with strong demand for Action's debt.
Negative Points
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The macroeconomic environment remains challenging, particularly in France, affecting consumer confidence and spending.
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Like-for-like sales in France were negative in October, impacting overall group performance.
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The French market's high food inflation and political concerns are creating a difficult trading environment.
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There is a risk that France may pull the company below its 6.1% like-for-like sales guidance for the year.
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The realization environment remains subdued, particularly in Europe, affecting potential exits and returns.
Q & A Highlights
Q: Given the softer seasonal start, how do you feel about the ability to sell through seasonal ranges and the likelihood of having to clear products at low margins? Also, how do French margins compare to the group average, and will the challenging backdrop in France affect future store openings? A: It's too early to tell how seasonal sales will pan out. We have a great set of products for Christmas, and significant seasonal write-downs are not expected. French margins are healthy, with high-volume stores trading at strong margins. We plan to continue opening stores in France, as it remains a significant market for us.
Q: Can you confirm if like-for-like sales were negative in France in October, and what challenges did you face there? Also, could you update us on the split of the remaining 38% stake in Action? A: Yes, like-for-like sales were negative in France in October, primarily due to a lack of seasonal product purchases. The remaining 38% stake in Action is held by Hellmann and Friedman (13%) and the balance by LPs, with some smaller stakes held by management. There is no change in our medium-term ambitions for Action.
Q: Can you provide some color on the 380 new store target by country, and how has the gross margin trended this year? Any updates on Action's US plans? A: Italy is seeing the most new store openings, followed by Southern Europe, Poland, Germany, and France. Gross margin is slightly above 40% due to strong category sales. We have no updates on Action's US plans, but management will discuss this at the CMD in March.
Q: How are the new stores in France faring in terms of like-for-like sales, and what can you say about the realization environment for private equity? A: New store openings in France have been positive, though specific details are not available. We expect to bring more companies to market within the next 12 months, although the realization environment remains subdued, particularly in Europe.
Q: Could the weakness in France be due to market maturity, and what needs to happen to meet your like-for-like guidance? A: We don't believe market maturity is the issue; it's more about the macroeconomic environment in France. To meet our like-for-like guidance, we need a focus on Christmas purchasing, particularly in France.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
