VFD Group’s 9M pre-tax profit rises 92%, Q3 revenue beats forecast 6.83%

VFD Group Plc reported a pre-tax profit of N15.34 billion in its unaudited financial results for the nine months ended 30 September 2026, representing an increase of 91.86% from N7.99 billion in the corresponding period of 2025.

Third-quarter gross earnings reached N28.16 billion, beating the company’s N26.36 billion forecast by 6.83%, supported by stronger investment and similar income, which increased to N25.98 billion against a projection of N25.30 billion.

The performance contributed to a 34.84% increase in nine-month gross earnings to N81.88 billion from N60.72 billion, supporting higher profitability.

Consequently, nine-month profit after tax increased by 95.97% to N13.00 billion from N6.63 billion, while earnings per share rose to 75 kobo from 38 kobo.

Key Highlights

The figures compare nine-month 2026 performance with the corresponding period of 2025, except balance sheet items, which are compared with December 2025.

• Gross earnings: N81.88 billion (Up 34.84% YoY from N60.72 billion).
• Investment and similar income: N75.11 billion (Up 52.58% YoY from N49.23 billion).
• Investment and similar expenses: N2.94 billion (Down 22.35% YoY from N3.78 billion).
• Impairment charges: N1.29 billion (Down 44.22% YoY from N2.32 billion).
• Finance costs: N43.33 billion (Up 35.66% YoY from N31.94 billion).
• Total assets: N577.64 billion (Up 29.57% from N445.81 billion).
• Cash and cash equivalents: N33.64 billion (Down 57.68% from N79.47 billion).
• Borrowings: N169.62 billion (Up 36.94% from N123.86 billion).
• Total shareholders’ equity: N130.02 billion (Up 86.75% from N69.62 billion).

Driving the numbers

VFD Group’s nine-month performance was driven mainly by stronger investment earnings across its financial activities.

Investment and similar income increased by 52.58% to N75.11 billion from N49.23 billion, accounting for 91.74% of the group’s gross earnings.

• The growth was driven mainly by investment income, which increased by 241.57% to N21.40 billion from N6.26 billion, contributing 28.49% of total investment and similar income.
• Interest from placements rose by 51.43% to N21.05 billion from N13.90 billion, accounting for 28.02%, while interest from debt instruments increased by 164.21% to N10.87 billion from N4.11 billion, contributing 14.47%.
• Interest from loans and advances increased marginally by 1.53% to N9.90 billion from N9.75 billion, representing 13.18% of total investment and similar income.
• Fees and commission income also rose by 281.44% to N4.47 billion from N1.17 billion, contributing 5.95%.

Income from investments in logistics and haulage declined sharply by 92.58% to N497.07 million from N6.70 billion, while dividend income fell by 41.85% to N1.10 billion.

This was accompanied by a 22.35% decline in investment and similar expenses to N2.94 billion, lifting net investment income by 58.81% to N72.18 billion.

• The improvement helped net revenue increase by 42.13% to N77.52 billion.

None-investment income

Non-investment income was mixed. Other income declined to N5.59 billion, despite a fair-value gain on investment property of N4.09 billion.

• Net gains on financial assets measured at fair value through profit or loss also declined sharply to N1.04 billion from N5.58 billion.

Impairment charges

Impairment charges provided additional support to profitability, declining 44.22% to N1.29 billion from N2.32 billion.

• The reduction was particularly evident in loan impairment charges, which declined to N153.26 million from N1.68 billion.

Operating expenses

Operating expenses increased by 29.23% to N18.98 billion, reflecting higher personnel and administrative costs.

• Personnel expenses rose by 49.98% to N6.37 billion from N4.25 billion, while other operating expenses increased by 25.31% to N11.10 billion.

Despite these increases, operating profit grew by 46.88% to N58.53 billion.

However, finance costs remained a significant pressure on earnings, increasing 35.66% to N43.33 billion from N31.94 billion and absorbed 74.02% of operating profit, limiting the amount ultimately available as pre-tax earnings.

Balance sheet

VFD Group’s balance sheet expanded by 29.57% to N577.64 billion from N445.81 billion in December 2025, supported by growth in financial investments and funds under management.

• Investment in financial assets more than doubled to N217.08 billion from N98.70 billion, while funds under management on the asset side increased to N142.52 billion from N77.35 billion.
• Loans and advances also increased to N32.79 billion from N26.25 billion.

However, borrowings rose by 36.94% to N169.62 billion, while cash and cash equivalents declined by 57.68% to N33.64 billion.

The group’s equity position strengthened significantly, increasing to N130.02 billion, supported partly by its rights issue.

Net cash generated from operating activities also increased to N28.91 billion from N9.00 billion.

Market reaction

VFD Group’s share price closed unchanged at N12.40 on 28 October 2026, the day its unaudited nine-month financial results were released on the NGX.

Trading volume stood at 4.25 million shares, compared with 2.27 million shares in the previous session, when the stock gained 3.33% from N12.00.

The stock has gained 12.73% year-to-date from its opening price of N11.00.