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VFD Group Plc recorded a robust performance for the period ended September 30, 2025, with nine-month profit before tax rising to N7.9 billion, up 61.5% from N4.9 billion in the same period last year.
This momentum carried through to the bottom line, as profit after tax climbed 48.5% to N6.6 billion, compared to N4.4 billion in 2024.
A cursory look shows that higher investment income and trimmed expenses were the main drivers of VFD Group’s strong earnings performance.
Key Highlights (9M 2025 vs 9M 2024)
- Gross earnings: N60.72 billion, +34.9% YoY
- Net investment income: N45.65 billion, +44.7% YoY
- Other income: N6.05 billion, +57.6% YoY
- Operating profit: N39.85 billion, +65.8% YoY
- Finance cost: N31.93 billion, +66.8% YoY
- Profit before tax: N7.99 billion, +61.5% YoY
- Profit after tax: N6.63 billion, +48.5% YoY
- Earnings per share (basic & diluted): 64 kobo, up from 45 kobo
- Total assets: N383.39 billion, +29.7% YTD
- Retained earnings: N16.80 billion, +54.5% YTD
Strong investment income and market performance lift top-line growth
VFD’s earnings success was driven by a 45% increase in net investment income to N45.6 billion, up from N31.5 billion in 2024. The growth was supported by better yields and an expanded investment portfolio.
- Net gains on financial assets stood at N5.57 billion, nearly doubling year-on-year, driven by favorable capital market movements and strategic portfolio positioning.
- Other income totaled N6.05 billion, boosted mainly by gains from investment properties and exchange uplift.
Margins supported despite rising finance costs
Pretax profit remained strong despite a 66.8% jump in finance costs to N31.9 billion.
- These costs, largely tied to borrowings, were counterbalanced by revenue growth, efficient expense management, and healthy operating profit.
Total operating expenses rose to N15.1 billion in the period, up from N12.8 billion last year. Key components included:
- Personnel expenses: N4.2 billion (+33.4% YoY)
- Other operating expenses: N9.2 billion (+19.5% YoY)
- Depreciation & amortisation: N1.5 billion (-14.98% YoY)
Even with these cost increases, VFD Group posted a 65.8% increase in operating profit before tax to N39.85 billion, demonstrating operational resilience.
- VFD Group’s profit before tax rose to N7.99 billion from N4.95 billion, while profit after tax settled at N6.63 billion.
- Earnings per share rose to 64 kobo, compared to 45 kobo in Q3 2024.
Balance sheet strengthened by retained earnings and equity gains
VFD Group’s financial position improved significantly in the nine-month period, with total assets rising to N383.39 billion from N295.6 billion at year-end 2024.
The group’s equity position also expanded to N71.50 billion, driven by N16.80 billion in retained earnings, N15.7 billion in share premiums, and N15.9 billion in other reserves. Non-controlling interest stood at N18.59 billion, reflecting the group’s diversified investments and partnerships.
Cash and cash equivalents also improved to N20.4 billion, signaling a strong liquidity position.
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