VFD Group’s H1 earnings climb 44% to N41.17bn

VFD Group Plc has reported a 44 per cent increase in gross earnings for the first half of 2025, rising to N41.17bn from N28.59bn recorded in the corresponding period of 2024.

The growth in gross earnings was primarily driven by a 50 per cent rise in investment and similar income, which accounted for over 91 per cent of the total gross earnings. This income category surged to N37.58bn, up from N25.14bn in the first half of 2024, fuelled by increased returns from interest, treasury activities, loans, advances, placements, and dividend income.

Despite a corresponding 50 per cent increase in investment and similar expenses to N1.92bn, the company managed to sustain profitability through improved operating efficiencies and strong revenue generation.

Other income, while constituting a smaller portion of the revenue at N645m (1.1 per cent of gross earnings), contributed positively, although it declined from N3.4bn in the first half of 2024.

The group’s share of profit from associates also improved, rising to N22m from N9.29m in H1 2024, while net gains on financial assets at fair value stood at N2.92bn, representing 7.1 per cent of gross earnings, where there was no contribution in the previous comparable period.

VFD Group’s net investment income similarly showed impressive growth, increasing by 50 per cent to N35.67bn, benefiting substantially from investment and similar income. This translated to a net investment income margin of 94.90 per cent compared with 10 per cent in H1 2024.

The group’s net revenue rose by 45 per cent to N37.95bn from N26.22bn, reflecting strong top-line growth. Operating profit surged 64 per cent to N27.16bn, while operating profit margin improved to 65.99 per cent from 57.88 per cent in the same period last year, signalling enhanced operational discipline and cost control.

However, total expenses rose 11.54 per cent to N10.79bn, driven primarily by a 43.42 per cent increase in personnel expenses to N2.9bn. This rise in personnel cost is attributed to increased staff strength to support the growing business activities, as well as salary adjustments aimed at talent retention. Other operating expenses, which make up 62.09 per cent of total expenses, rose modestly by 4.14 per cent to N6.7bn, reflecting higher administrative costs associated with business expansion. Depreciation and amortisation decreased slightly by 2.15 per cent to N1.2bn.

Profit before tax recorded a strong 80 per cent growth to N6.04bn from N3.35bn in H1 2024. The effective tax rate for the period dropped 17.02 per cent from 23.02 per cent, with total tax expenses amounting to N1.03bn.

VFD Group’s profit after tax nearly doubled to N5.01bn compared with N2.58bn in the first half of 2024. This translated to basic earnings per share of N0.49, up from N0.26 per share in the previous period. The group’s total comprehensive income also surged to N17.19bn from N2.88bn, highlighting strong overall financial performance.

Total assets increased to N356.87bn from N295.67bn at the end of 2024, led by a 72 per cent rise in investment in financial assets to N87.62bn and a 59 per cent jump in funds under management to N78.68bn. Trade and other receivables also grew 19 per cent to N66.32bn, while investment property expanded by 29 per cent to N32.09bn, reflecting the group’s diversification into real estate, logistics, and hospitality sectors.

Liabilities rose to N288.52bn from N237.14bn, driven by increases in both current liabilities and borrowings, which stood at N123.51bn, mainly from commercial notes and private placements.