VFD Group Plc has reported a full-year pre-tax profit of N12.4 billion, as detailed in their earnings report released on the Nigerian Exchange (NGX) on February 10, 2025.
This marks a strong turnaround from the pre-tax loss of N1 billion recorded for the full year of 2023.
The group also highlighted a substantial full-year net revenue of N32.2 billion, reflecting a year-over-year increase of 164.15% from N12.1 billion reported in the prior year.
Furthermore, total assets soared to N328.6 billion, representing a significant growth of 49.90% from N219.2 billion announced in 2023.
According to the Group’s Managing Director/Chief Executive, Nonso Okpala, strategic investments and divestments drove a significant increase in earnings and profitability over the year.
Key highlights
- Gross Earnings: N83.2 billion, +84.5% YoY
- Net Investment Income: N21.7 billion, +1,318.95% YoY
- Net Revenue: N32.2 billion, +164.15% YoY
- Operating Profit: N11.3 billion, -374.15% YoY
- EBITDA: N56.4 billion, +119.08% YoY
- Pre-tax Profit: N12.4 billion, -1,321.57% YoY
- Post-tax Profit: N10.41 billion, -1,488% YoY
- Earnings Per Share: N8.22, -308.10% YoY
- Total Assets: N328.6 billion, +49.90% YoY
Commentary
VFD Group recorded gross earnings of N83.2 billion for FY 2024, marking an increase of 84.5% compared to N45.1 billion in the previous year.
- Investment income, which comprised 85.54% of gross earnings, rose by 107.62% year-over-year to N71.1 billion from N34.28 billion, mainly due to divestments, interest from treasury activities, loans, and dividends.
- Other income, making up 11.24% of gross earnings, grew by 31.60% year-over-year to N9.35 billion, largely driven by logistics, hospitality, fair value gains, and foreign exchange gains.
- Net gains on financial assets at fair value were N2.65 billion, accounting for 3.18% of gross earnings, reflecting a slight increase of 7.30% from N3.29 billion in the previous year.
- The share of profit from associates was N30.04 million, contributing 0.04% to gross earnings.
Net investment income increased significantly by 1,318.95% year-over-year, rising from N1.5 billion to N21.7 billion. Net revenue grew to N32.20 billion, up 164.15% from N12.1 billion last year.
The group’s operating profit improved to N11.3 billion, recovering from a loss of N4.1 billion in the previous year, while EBITDA increased by 119.08% year-over-year.
VFD’s pre-tax profit was N12.4 billion, reversing a loss of N1 billion from last year, while post-tax profit reached N10.4 billion, a significant turnaround from a loss of N750 million in 2023.
- Consequently, earnings per share rose to N8.22 from a negative N3.95 reported last year.
Asset position
The group reported a 49.90% year-over-year increase in total assets, reaching N328.6 billion, up from N219.2 billion in the previous year. This growth indicates a focus on enhancing asset value.
- Investments in financial assets accounted for a significant portion of total revenue at N189.8 billion.
- Other assets included N58.1 billion in various holdings, N35.8 billion in investment properties, and N24.4 billion in cash and cash equivalents.
Executive comments
Group Managing Director and Chief Executive Officer Nonso Okpala commented on the results, stating that the group demonstrated solid financial performance, reflecting its investment strategies.
He noted, “Strategic investments and divestments contributed to an increase in earnings and profitability this year. We have worked on reinforcing our financial resilience, expanding our investment portfolio, and improving our governance framework, with a focus on digital innovation.”
He also mentioned that a recent rights issue of N12.5 billion resulted in a 90% growth in shareholders’ funds, reaching approximately N61.98 billion. This capital base, along with an improved leverage profile, positions the group for potential growth and aims to ensure financial stability moving forward.
