Shares of VFD Group Plc have surged by 69% month-to-date, reaching N79.80 by market close on April 10, 2025, up from a monthly opening price of N47.20.
The group published its audited financial statement for the year ended December 31, 2024, reporting a pre-tax profit of N11.2 billion, a shift from the pre-tax loss of N1 billion recorded in 2023, largely attributed to an increase in investment income.
Investment income soared by 97.95% year-on-year to N74.5 billion, contributing to a 95% increase in net interest income to N58.9 billion, despite investment expenses spiking to N15.5 billion.
In late March 2025, the group announced that its board approved investments in Abbey Mortgage Bank Plc and the e-commerce platform Bvndle Loyalty Limited, with the goal of strengthening the operations of these companies and allowing VFD to pursue new, profitable opportunities.
So far in April 2025, VFD shares have surged with a market volume of over 14 million shares, breaking above the N70 barrier.
Market trend
In 2024, VFD Group recorded a year-to-date performance of 9% in the Nigerian stock market, rising from N40.60 to close at N44.40.
- January 2025 saw no price movements, with the stock stalling at N44.40 despite a market volume of 4.3 million shares.
- Bullish price action began in mid-February, propelling the stock past the N50 barrier to close the month at N52.40.
In March, the stock closed at N47.20. However, so far in April, it has surged to N79.80, with a market volume of over 14 million shares, compared to just 2 million shares in March.
Possible drivers of bullish action
While the reasons behind the recent rise in share price are not entirely clear, several fundamental events—particularly investment activities—may have contributed to a more positive outlook among investors.
In February 2025, VFD Group announced a capital injection of N5 billion into VFD Microfinance Bank (V Bank), effective February 18, 2025, aimed at enhancing its banking services.
Later, in March 2025, the group revealed that its board approved investments in Abbey Mortgage Bank Plc and the e-commerce platform Bvndle Loyalty Limited.
- These investments are intended to support the operations of these companies and help VFD tap into new growth opportunities.
Additionally, the VFD Board authorized funding for its subsidiaries—VFD UK and VFD South Africa—to assist in their expansion efforts in the UK and across Africa.
For FY 2024, the group reported a pre-tax profit of N11.2 billion, recovering from the N1 billion loss reported in 2023.
- This improvement was primarily due to a 97.95% increase in investment income, which rose to N74.5 billion from N37.6 billion the previous year.
Commenting on the results, Group Managing Director and CEO Nonso Okpala noted, “Investments and divestments have helped improve our earnings this year. We are focused on building our financial stability, expanding our investment options, and enhancing our governance, with an emphasis on digital innovation.”
