VFD Group doubles profit to N10bn on investment gains

VFD Group Plc, a principal investment company listed on the Nigerian Exchange Limited, has announced a substantial increase in profitability for the first six months of 2026. The company's unaudited financial statements reveal a doubling of its profit after tax to N10.06 billion, reflecting the successful execution of its long-term capital allocation strategy.

The Group recorded gross earnings of N53.71 billion, a 30.5% year-on-year increase, primarily driven by the performance of its investment portfolio. Profitability grew at a faster rate than revenue, with Profit Before Tax rising by 98.4% and Profit After Tax surging by 100.8%. Investment and similar income accounted for 91.5% of gross earnings, totaling N49.13 billion, underscoring the resilience of VFD's investment-focused business model.

The company's results also indicate improved operating leverage, as total income outpaced the growth in operating costs, interest expenses, and impairment charges. This led to stronger earnings retention. For the parent company, gross earnings increased by 62.5% to N23.87 billion, while Profit Before Tax surged 295% to N5.95 billion, and Profit After Tax grew by 328% to N5.03 billion.

VFD Group's balance sheet has also strengthened significantly. Shareholders' funds more than doubled to N91.02 billion, while borrowings decreased by 7% to N116.18 billion from N124.9 billion at the end of 2025. Although total assets were marginally lower than the December 2025 position, this reflects the strategic use of proceeds from the Group's rights issue to reduce debt and optimize its capital structure. This enhanced financial flexibility positions VFD to pursue future investment opportunities.

Nonso Okpala, Group Managing Director of VFD Group Plc, commented on the results: "The first half of 2026 performance demonstrates the value of disciplined execution in a market that continues to reward thoughtful execution. Profit grew more than three times faster than revenue because we remain focused on deploying capital only where risk-adjusted returns justify it, while ensuring the businesses within our portfolio convert that capital into sustainable earnings rather than simply increased activity."

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The first half of 2026 performance demonstrates the value of disciplined execution in a market that continues to reward thoughtful execution. Profit grew more than three times faster than revenue because we remain focused on deploying capital only where risk-adjusted returns justify it, while ensuring the businesses within our portfolio convert that capital into sustainable earnings rather than simply increased activity.