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

VFD Group Plc has announced a 44% year-on-year growth in gross earnings for the first half of 2025, rising to ₦41.17bn from ₦28.59bn in the same period of 2024.

The performance was driven mainly by a 50% surge in investment and similar income, which accounted for over 91% of gross earnings. This segment rose to ₦37.58bn from ₦25.14bn last year, fuelled by higher returns from interest, treasury activities, loans, advances, placements, and dividend income.

Although investment and similar expenses also climbed 50% to ₦1.92bn, improved operational efficiency and strong revenue generation supported sustained profitability. Other income contributed ₦645m, down from ₦3.4bn in the prior period, while the group’s share of profit from associates rose to ₦22m from ₦9.29m. Net gains on financial assets at fair value reached ₦2.92bn, compared to no contribution in H1 2024.

Net investment income jumped 50% to ₦35.67bn, translating to a margin of 94.9%, up sharply from 10% last year. Net revenue climbed 45% to ₦37.95bn, while operating profit rose 64% to ₦27.16bn, with the operating profit margin improving to 65.99% from 57.88%.

Total expenses increased 11.54% to ₦10.79bn, driven by a 43.42% rise in personnel costs to ₦2.9bn, reflecting higher staff numbers and salary adjustments. Other operating expenses, which made up 62.09% of total costs, rose 4.14% to ₦6.7bn. Depreciation and amortisation declined 2.15% to ₦1.2bn.

Profit before tax surged 80% to ₦6.04bn from ₦3.35bn, while the effective tax rate fell to 17.02% from 23.02%, resulting in tax expenses of ₦1.03bn. Profit after tax almost doubled to ₦5.01bn from ₦2.58bn, pushing basic earnings per share to ₦0.49 from ₦0.26. Total comprehensive income soared to ₦17.19bn from ₦2.88bn.

Total assets grew to ₦356.87bn from ₦295.67bn at the end of 2024, supported by a 72% rise in financial asset investments to ₦87.62bn, a 59% increase in funds under management to ₦78.68bn, and a 29% growth in investment property to ₦32.09bn. Liabilities rose to ₦288.52bn from ₦237.14bn, with borrowings reaching ₦123.51bn, mainly from commercial notes and private placements.

VFD’s gearing ratios improved, with debt-to-equity dropping to 1.81 times from 2.07 times, and debt-to-assets falling to 0.35 times from 0.41 times, indicating stronger financial stability and reduced leverage.