For the first half of 2025, VFD Group Plc reported gross earnings of N41.17 billion, up 44 per cent from N28.59 billion in the same period in 2024.
Primary driver of VFD’s gross earnings growth
The primary driver of gross earnings growth was a 50 per cent increase in investment and comparable income, which accounted for more than 91 per cent of the total gross earnings.
Increased returns from interest, treasury operations, loans, advances, placements, and dividend income drove this income category’s rise from N25.14 billion to N37.58 billion in the first half of 2024.
The business maintained profitability through increased operational efficiencies and robust revenue generation, even with a corresponding 50 per cent increase in investment and comparable expenses of N1.92 billion.
Even though it only made up N645 million (1.1 per cent of gross earnings), other income contributed to revenue despite falling from N3.4 billion in the first half of 2024.
Additionally, the group’s share of associate profit increased from N9.29 million in H1 2024 to N22 million.
Additionally, net gains on financial assets at fair value were N2.92 billion, or 7.1 per cent of gross earnings, compared to the previous comparable period when there was no contribution.
Net investment income
VFD Group’s net investment income also demonstrated remarkable growth, rising by 50 per cent to N35.67 billion, largely thanks to investments and comparable revenue. Compared to 10 per cent in H1 2024, this resulted in a net investment income margin of 94.90 per cent.
Strong top-line growth was reflected in the group’s net revenue, which increased by 45 per cent to N37.95 billion from N26.22 billion.
Operating profit margin improved to 65.99 per cent from 57.88 per cent in the same period last year, while operating profit jumped 64 per cent to N27.16 billion, indicating improved cost control and operational discipline.
Personnel expenses
However, personnel expenses increased 43.42 per cent to N2.9 billion, the main driver of the 11.54 per cent increase in total costs to N10.79 billion. Increased staffing to support the expanding business operations and pay changes intended to retain talent are the reasons for this increase in personnel costs.
Higher administrative costs related to business expansion are reflected in the modest increase of 4.14 per cent to N6.7 billion in other operating expenses, which account for 62.09 per cent of total expenses. Amortisation and depreciation dropped by 2.15 per cent to N1.2 billion.
VFD’s profit in H1 2025
Profit before taxes increased by 80 per cent from N3.35 billion in H1 2024 to N6.04 billion. The period’s effective tax rate decreased from 23.02 per cent to 17.02 per cent, and N1.03 billion was spent on taxes overall.
After taxes, VFD Group’s profit almost doubled to N5.01 billion from N2.58 billion in the first half of 2024. As a result, basic earnings per share increased from N0.26 to N0.49 over the prior period.
The group’s total comprehensive income increased from N2.88 billion to N17.19 billion, demonstrating strong overall financial performance.
Total assets
At the end of 2024, total assets climbed from N295.67 billion to N356.87 billion, driven by a 72 per cent increase in financial asset investments to N87.62 billion and a 59 per cent increase in funds under management to N78.68 billion.
The group’s diversification into the real estate, logistics, and hospitality sectors is reflected in the 19 per cent growth in trade and other receivables to N66.32 billion and the 29 per cent expansion in investment property to N32.09 billion.
Liabilities
Due to increases in current liabilities and borrowings, which totalled N123.51 billion and were primarily from commercial notes and private placements, liabilities increased from N237.14 billion to N288.52 billion.
The group’s debt-to-equity and debt-to-assets ratios significantly improved, dropping from 2.07 to 1.81 times and 0.41 to 0.35 times, respectively. These metrics reflect enhanced financial stability and reduced leverage.
About VFD Group Plc
The dynamic proprietary investment firm VFD Group Plc, based in Lagos, Nigeria, is a sector-neutral investment firm that offers cutting-edge financial solutions in several industries, such as technology, real estate, hotels, securities trading, asset management, microfinance banking, and insurance brokerage.
Over 40 subsidiaries and associate businesses, some of which operate throughout Ghana and West Africa, comprise the company’s diverse portfolio, underscoring its expanding regional reach.
The company’s primary functions include digital infrastructure, real estate and hospitality, stockbroking, insurance brokerage, investment and fund management, microfinance banking services, and auto and finance leasing.
Through its subsidiaries, such as VFD Microfinance Bank and Anchoria Asset Management, VFD provides customised solutions to individual and corporate clients.
VFD Group, a prominent player in its industry, is renowned for its strategic diversification, strong framework for risk management, and quickness in seizing new market opportunities.
Its capacity to spot scalable companies and develop them into high-performing assets gives it a competitive edge.
Through subsidiaries like VFD Ghana Limited, the Group has a significant presence in Nigeria and is expanding its influence throughout Africa.