VFD Group Plc reported a pre-tax profit of N15.34 billion in its unaudited financial results for the nine months ended 30 September 2026, representing an increase of 91.86% from N7.99 billion in the corresponding period of 2025.<\/p>\n
Third-quarter gross earnings reached N28.16 billion, beating the company\u2019s N26.36 billion forecast by 6.83%, supported by stronger investment and similar income, which increased to N25.98 billion against a projection of N25.30 billion.<\/p>\n
The performance contributed to a 34.84% increase in nine-month gross earnings to N81.88 billion from N60.72 billion, supporting higher profitability.<\/p>\n
Consequently, nine-month profit after tax increased by 95.97% to N13.00 billion from N6.63 billion, while earnings per share rose to 75 kobo from 38 kobo.<\/p>\n
The figures compare nine-month 2026 performance with the corresponding period of 2025, except balance sheet items, which are compared with December 2025.<\/p>\n
\n\n
- Gross earnings: N81.88 billion (Up 34.84% YoY from N60.72 billion).<\/li>\n
- Investment and similar income: N75.11 billion (Up 52.58% YoY from N49.23 billion).<\/li>\n
- Investment and similar expenses: N2.94 billion (Down 22.35% YoY from N3.78 billion).<\/li>\n
- Impairment charges: N1.29 billion (Down 44.22% YoY from N2.32 billion).<\/li>\n
- Finance costs: N43.33 billion (Up 35.66% YoY from N31.94 billion).<\/li>\n
- Total assets: N577.64 billion (Up 29.57% from N445.81 billion).<\/li>\n
- Cash and cash equivalents: N33.64 billion (Down 57.68% from N79.47 billion).<\/li>\n
- Borrowings: N169.62 billion (Up 36.94% from N123.86 billion).<\/li>\n
- Total shareholders\u2019 equity: N130.02 billion (Up 86.75% from N69.62 billion).<\/li>\n<\/ul>\n<\/blockquote>\n
Driving the numbers<\/strong><\/h4>\n
VFD Group\u2019s nine-month performance was driven mainly by stronger investment earnings across its financial activities.<\/p>\n
Investment and similar income increased by 52.58% to N75.11 billion from N49.23 billion, accounting for 91.74% of the group\u2019s gross earnings.<\/p>\n
\n
- The growth was driven mainly by investment income, which increased by 241.57% to N21.40 billion from N6.26 billion, contributing 28.49% of total investment and similar income.<\/li>\n
- Interest from placements rose by 51.43% to N21.05 billion from N13.90 billion, accounting for 28.02%, while interest from debt instruments increased by 164.21% to N10.87 billion from N4.11 billion, contributing 14.47%.<\/li>\n
- Interest from loans and advances increased marginally by 1.53% to N9.90 billion from N9.75 billion, representing 13.18% of total investment and similar income.<\/li>\n
- Fees and commission income also rose by 281.44% to N4.47 billion from N1.17 billion, contributing 5.95%.<\/li>\n<\/ul>\n
Income from investments in logistics and haulage declined sharply by 92.58% to N497.07 million from N6.70 billion, while dividend income fell by 41.85% to N1.10 billion.<\/p>\n
This was accompanied by a 22.35% decline in investment and similar expenses to N2.94 billion, lifting net investment income by 58.81% to N72.18 billion.<\/p>\n
\n
- The improvement helped net revenue increase by 42.13% to N77.52 billion.<\/li>\n<\/ul>\n
None-investment income<\/strong><\/h4>\n
Non-investment income was mixed. Other income declined to N5.59 billion, despite a fair-value gain on investment property of N4.09 billion.<\/p>\n
\n
- Net gains on financial assets measured at fair value through profit or loss also declined sharply to N1.04 billion from N5.58 billion.<\/li>\n<\/ul>\n
Impairment charges<\/strong><\/h4>\n
Impairment charges provided additional support to profitability, declining 44.22% to N1.29 billion from N2.32 billion.<\/p>\n
\n
- The reduction was particularly evident in loan impairment charges, which declined to N153.26 million from N1.68 billion.<\/li>\n<\/ul>\n
Operating expenses<\/strong><\/h4>\n
Operating expenses increased by 29.23% to N18.98 billion, reflecting higher personnel and administrative costs.<\/p>\n
\n
- Personnel expenses rose by 49.98% to N6.37 billion from N4.25 billion, while other operating expenses increased by 25.31% to N11.10 billion.<\/li>\n<\/ul>\n
Despite these increases, operating profit grew by 46.88% to N58.53 billion.<\/p>\n
However, finance costs remained a significant pressure on earnings, increasing 35.66% to N43.33 billion from N31.94 billion and absorbed 74.02% of operating profit, limiting the amount ultimately available as pre-tax earnings.<\/p>\n
Balance sheet<\/strong><\/h4>\n
VFD Group\u2019s balance sheet expanded by 29.57% to N577.64 billion from N445.81 billion in December 2025, supported by growth in financial investments and funds under management.<\/p>\n
\n
- Investment in financial assets more than doubled to N217.08 billion from N98.70 billion, while funds under management on the asset side increased to N142.52 billion from N77.35 billion.<\/li>\n
- Loans and advances also increased to N32.79 billion from N26.25 billion.<\/li>\n<\/ul>\n
However, borrowings rose by 36.94% to N169.62 billion, while cash and cash equivalents declined by 57.68% to N33.64 billion.<\/p>\n
The group\u2019s equity position strengthened significantly, increasing to N130.02 billion, supported partly by its rights issue.<\/p>\n
Net cash generated from operating activities also increased to N28.91 billion from N9.00 billion.<\/p>\n
Market reaction<\/strong><\/h4>\n
VFD Group\u2019s share price closed unchanged at N12.40 on 28 October 2026, the day its unaudited nine-month financial results were released on the NGX.<\/p>\n
Trading volume stood at 4.25 million shares, compared with 2.27 million shares in the previous session, when the stock gained 3.33% from N12.00.<\/p>\n
The stock has gained 12.73% year-to-date from its opening price of N11.00.<\/p>\n
Source: <\/p>\n
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