VFD Group Declares N3.04bn PBT in Q1 2024

Kayode Tokede

VFD Group Plc has announced N3.04 billion profit before tax(PBT) in its unaudited first quarter (Q1) ended March 31, 2024, compared with N220.28 million reported in corresponding period in   Q1 2023.

The leading proprietary investment company listed on the Nigerian Exchange Limited (NGX) announced N2.62 billion profit in Q1 2024, an increase of 1,089 per cent from N220.3million in Q1 2023. 

The group also announced its audited 2023 financial year, declaring gross earnings that grew by 13.2per cent closing the year at N45.1billion, a significant increase from N34.03 billion in 2022, which indicates a robust top-line growth.

The company’s balance sheet improved in the period under review as total assets hit N261.91billion, a growth of nine per cent per cent from N219.3 billion reported as of December 2023.

The Group Managing Director/CEO of VFD Group, Nonso Okpala, in a statement said that the increase in the company’s balance sheet and gross earnings were due largely to dividend income and treasury-related income.

Okpala attributed the company’s loss after tax recorded in 2023 financial year  to tough and challenging business environment.

He said:“Naira devaluation, unprecedented inflation, and the rising cost of doing business in Nigeria drove up our operating costs. We also made new investments, the bulk of which would take time to yield investment income whilst the interest expense on the cost of investment had to be recorded immediately.”

“Despite the highlighted economic environment marked by high interest rates, rising inflation, and Naira depreciation, the Q1 performance has shown that VFD Group is dedicated to adapting and excelling.

Okpala reiterated that the company is focused on strengthening its core operations and continue to explore new growth opportunities. According to him, “we are actively working on cost optimisation measures and enhancing our investment strategies to improve financial performance in the coming years. Already, we are seeing the results of our refined strategy.”