VFD Group Plc has announced a full-year pre-tax profit of N12.4 billion for 2024, marking a significant turnaround from the N1 billion pre-tax loss recorded in 2023.
This remarkable recovery, detailed in the company’s earnings report released on February 10, 2025, on the Nigerian Exchange (NGX), highlights strong revenue growth, strategic investments, and operational efficiency.
The company reported gross earnings of N83.2 billion, reflecting an 84.5% increase compared to the N45.1 billion recorded in the previous year. Net revenue rose sharply to N32.2 billion, representing a 164.15% year-over-year increase from N12.1 billion in 2023. The group’s total assets surged to N328.6 billion, a 49.90% increase from N219.2 billion, reflecting the company’s commitment to strengthening its financial base.
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According to Group Managing Director and Chief Executive Officer, Nonso Okpala, the remarkable financial recovery was driven by strategic investments and divestments, which significantly boosted earnings and profitability.
“Strategic investments and divestments contributed to an increase in earnings and profitability this year. We have worked on reinforcing our financial resilience, expanding our investment portfolio, and improving our governance framework, with a focus on digital innovation,” Okpala said.
VFD Group’s investment income, which accounted for 85.54% of total earnings, rose by 107.62% to N71.1 billion. The increase was largely due to successful divestments, treasury interest, loan growth, and dividends from strategic assets. Other income, which accounted for 11.24% of gross earnings, rose by 31.60% year-over-year to N9.35 billion, with growth driven by logistics, hospitality, fair value gains, and foreign exchange gains.
The company also recorded net gains on financial assets at fair value totaling N2.65 billion, representing a 7.30% increase from N3.29 billion in the previous year. Additionally, the share of profit from associates was N30.04 million, contributing a small portion of total earnings.
One of the most notable improvements in the financial report was net investment income, which skyrocketed by 1,318.95% year-over-year, growing from N1.5 billion in 2023 to N21.7 billion in 2024. This substantial increase underscores the effectiveness of the company’s financial strategy.
VFD Group’s operating profit also rebounded to N11.3 billion, a stark improvement from the N4.1 billion loss recorded in the previous year. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) surged by 119.08% year-over-year, reflecting improved operational efficiency and cost management.
The pre-tax profit of N12.4 billion marks a sharp reversal from the N1 billion loss in 2023, while the post-tax profit reached N10.4 billion, a substantial improvement from the N750 million loss recorded in the previous year. As a result of these gains, earnings per share (EPS) rose to N8.22 from a negative N3.95 in 2023, signaling a strong recovery for shareholders.
The company also recorded an increase in total assets, which rose by 49.90% year-over-year, reaching N328.6 billion from N219.2 billion in 2023. The significant growth in assets reflects VFD Group’s continued focus on enhancing its investment portfolio and strengthening financial stability.
A breakdown of key asset categories shows that investments in financial assets accounted for N189.8 billion, forming a significant portion of the company’s total revenue. Other holdings amounted to N58.1 billion, while investment properties stood at N35.8 billion, reflecting the company’s growing real estate interests. The company also held N24.4 billion in cash and cash equivalents, ensuring ample liquidity for future expansion and investment opportunities.
As part of its long-term strategy, VFD Group also successfully executed a rights issue of N12.5 billion, which led to a 90% increase in shareholders’ funds, now standing at approximately N61.98 billion. This strengthened capital base improves the company’s financial stability, leverage profile, and future growth prospects.
Reflecting on these achievements, Okpala emphasized the group’s commitment to long-term sustainability, innovation, and financial resilience. He noted that the company has implemented significant measures to reinforce governance, expand its investment reach, and leverage digital transformation to optimize operations.
“We remain focused on strengthening our financial base while enhancing our digital capabilities. The results achieved this year are a reflection of our commitment to building a sustainable and resilient financial ecosystem that delivers value to our shareholders and stakeholders,” Okpala said.