Categories: Finance

VFD Group Plc Eyes N1.05 Billion Net Profit as Q4 Earnings Forecast Hits N16.12 Billion

VFD Group Plc, an industry-agnostic proprietary investment company with a portfolio of over 40 businesses across various sectors and geographies, has projected to earn N1.05 billion in the fourth quarter of 2024.

This was revealed in a financial projection statement signed by the Director of Finance, John Okonkwo, and Group Managing Director, Nonso Okpala.

According to the statement, gross earnings is projected to hit N16.12 billion in the period ending December 31, 2024.

Investment and similar income is expected to contribute N15.1 billion while investment expenses are projected at N10.42 billion.

This is expected to result in a net investment income of N4.68 billion.

Also, other income sources are expected to bring in N1.02 billion to take the total operating income to N5.7 billion.

However, the company is projected to spend N3.98 billion as operating expenses.

This includes personnel expenses of N1.09 billion, depreciation and amortization costs of N534.82 million and other operating expenses amounting to N2.35 billion.

Net impairment charge of N216.74 million was expected while net operating income is expected to stand at N5.49 billion.

VFD Group estimates its profit before tax will reach N1.51 billion, with an income tax expense of N452.67 million, leaving a profit of N1.05 billion for the period.

The company’s cash flow projections also paint an optimistic picture. Net cash generated from operating activities is expected to be N3.16 billion, while cash used in investing activities is forecasted at N6.4 billion.

On the financing side, the group projects cash generation of N8.81 billion, leading to a net increase in cash and cash equivalents of N5.57 billion.

By the end of Q4, cash reserves are expected to rise to N9.86 billion from N4.28 billion at the beginning of the quarter.

Although these numbers are projections, the forecast indicates VFD Group’s ability to manage its finances effectively in the face of economic uncertainties.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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