VFD Group profit hits N5.19bn

VFD Group Plc, a prominent investment company on the Nigerian Exchange, has announced robust financial results for the first quarter of 2026, signaling a successful transition into an "earnings-translation" phase. The Punch reports a significant 37% surge in consolidated gross earnings, reaching N27.07bn, and a 26% increase in profit before tax to N5.19bn. This performance underscores the strategic initiatives undertaken over the past two years, including portfolio reshaping and balance sheet recapitalization.

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Over the last two years, we have done the difficult work of reshaping the portfolio, recapitalising the balance sheet, and aligning every entity in the Group to a clear principal investment thesis.

Notably, the standalone company performance, reflecting the core earning power of its investment activities, saw profit before tax more than double, soaring by 102% to N2.11bn. Group Managing Director Nonso Okpala highlighted the "level of capital deployment efficiency" achieved. The company's investment income grew by 27% to N23.99bn, supported by broad-based improvements in fee income across its diversified subsidiaries in Nigeria, Ghana, and South Africa.

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The fact that Company-level profit has more than doubled tells you the level of capital deployment efficiency the investment company possesses.

Looking ahead, VFD Group anticipates even stronger performance in the coming quarters. Executive Director Folajimi Adeleye pointed to a stronger capital base, lower funding costs, and a higher-quality earning asset mix. The full impact of a N50.4bn rights issue, which became available towards the end of the quarter, is yet to be reflected in the numbers, suggesting significant upside potential. VFD Group remains committed to its pan-African thesis, focusing on deepening its investment platform and delivering compounding value to shareholders.

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We are entering Q2 with a stronger capital base, lower funding cost trajectory, and a higher-quality earning asset mix.