VFD Group Plc, a financial institution committed to transparency and accountability, has released its unaudited consolidated financial statements for the third quarter ending in September 2023.
These results reflect the challenges faced within the economic landscape. Here is a summary of VFD Group’s financial performance:
- Revenue Growth: VFD Group reported a total revenue of N29.0 billion for the last quarter, marking a 23% increase compared to the same period in the previous year. This growth was driven by dividend income and treasury-related income.
- Profitability Challenges: Several factors impacted profitability: (i) Naira Depreciation: A significant depreciation of the Naira from N447 to N767 (71.85%) increased the cost of hedging instruments used to manage exchange rate volatility on forward transactions, resulting in a substantial impact on interest expenses. (ii) Inflation and Operating Costs: Unprecedented inflation and the rising cost of doing business in Nigeria affected operating expenses. (iii) New Investments: The group made new investments during the review period, with benefits expected to materialize in future quarters.
VFD Group recognizes that the time lag between investments and the realization of investment income has temporarily affected performance, not fully reflecting the inherent strength of its balance sheet and the potential of its ecosystem.
Despite the challenging economic environment characterized by high-interest rates, rising inflation, and Naira depreciation, VFD Group remains committed to adapting and thriving.
The company aims to provide value to all shareholders and will continue to excel in its operations.
