VFD Group Plc has filed its financial statements for the first quarter ended March 31, 2026, reporting a pretax profit of N5.1 billion, up from N4.1 billion year-on-year.
The improvement was largely driven by stronger top-line income, as investment and related earnings rose to N23.9 billion, representing a 27.18% increase from N18.8 billion in Q1 2025.
Within this, investment income contributed the most at N4.7 billion, followed by placements at N4.5 billion, logistics and haulage at N4.1 billion, and interest from loans and advances at N3.3 billion as major contributors.
Further strengthening profitability, ‘other income’ surged to N2.7 billion, up 529.3% year-on-year, supported by exchange gains and fair value gains on investment properties.
Key highlights: (Q1 2026 vs Q1 2025)
- Gross earnings: N27.07 billion, up 36.63% YoY
- Investment and similar income: N23.9 billion, up 27.18% YoY
- Net investment income: N19.46 billion, up 9.26% YoY
- Other income: N2.7 billion, up 529.34% YoY
- Net revenue: N22.3 billion, up 21.29% YoY
- Total expenses: N6.5 billion vs N4.4 billion
- Finance cost: N10.4 billion vs N9.8 billion
- Pretax profit: N5.1 billion, up 25.99% YoY
- Retained earnings: N19.9 billion, up 19.30% YoY
Driving the numbers
A closer look shows that, beyond the major income drivers contributing to the N23.9 billion top line, several other revenue streams also supported performance in Q1 2026.
- Treasury bills and commercial papers yielded N1.9 billion, followed by fees and commissions at N1.7 billion, and debt instruments interest at N1.6 billion.
- Dividend income stood at N605.3 million, while disposal of shares generated N600.4 million, with other minor sources contributing to the remainder.
As expected, investment expenses spiked significantly, rising to N4.5 billion from N1.04 billion, leaving net investment income at N19.4 billion, up 9.26% year-on-year from N17.8 billion.
- After accounting for other income of N2.7 billion, impairment on financial assets of N301.9 million, and net gains on financial assets of N345 million, net revenue settled at N22.2 billion.
However, total expenses rose sharply to N6.5 billion from N4.4 billion, driven largely by operating costs, personnel expenses, and depreciation charges.
Following these costs, operating profit stood at N15.6 billion, up 12.56% from N13.9 billion, though finance costs of N10.4 billion pushed pretax profit down to N5.1 billion.
After tax expense of N1.03 billion was accounted for, Q1 2026 post-tax profit settled at N4.1 billion, up from N3.4 billion in the corresponding period.
Balance sheet
On the balance sheet, total assets rose to N458.6 billion in Q1 2026 from N445.8 billion in 2025, with investments in financial assets at N152.8 billion remaining the largest asset class.
In terms of shareholder funds, a share premium of N63.4 billion, alongside retained earnings of N19.92 billion, up 19% year-on-year, accounted for the bulk of total equity of N124.2 billion.
On the liabilities side, borrowings of N104.7 billion and funds under management of N104.1 billion represented the largest obligations, bringing total liabilities to N334.4 billion, lower than N376.1 billion.
Market reaction
The Q1 results were published after market close on April 28, 2026, trading session, with shares priced at N10.20.
Given the timing of the release, the market is expected to react to the positive financials in subsequent sessions from the opening of trading on April 29.
