VFD Group Plc Rebounds to N12.46bn PBT in 2024 as Earnings Surge 85%

VFD Group Plc rebounded from a N1.02 billion pre-tax loss in 2023 to post a profit before tax (PBT) of N12.46 billion on strong revenue growth, improved investment performance and cost management strategies.

The Group’s unaudited financial statements obtained by Investors King showed gross earnings rose by 85% to N83.2 billion, compared to N45.1 billion in 2023.

Investment Income Fuels Growth

• Investment and similar income surged by 108% to N71.18 billion, up from N34.28 billion in 2023.
• Investment and similar expenses also increased to N49.47 billion, compared to N32.75 billion in 2023.
• Despite the rising cost of funds, net investment income grew exponentially to N21.71 billion in 2024, compared to just N1.53 billion in 2023.

Non-Investment Revenue Sees Strong Gains

• Other income increased by 31% to N9.35 billion, up from N7.16 billion in 2023, reflecting higher earnings from non-core operations.
• Net gains on financial assets at fair value through profit or loss stood at N2.65 billion, showing steady performance in trading and financial market-related income.

Operating Efficiency and Cost Management

• Personnel expenses rose to N4.59 billion, compared to N3.39 billion in 2023, showing higher employee costs due to business expansion.
• Other operating expenses increased to N12.78 billion, up from N8.35 billion in 2023, indicating higher business activities and operational expansion.
• Depreciation and amortization costs stood at N2.38 billion, compared to N1.47 billion in 2023, reflecting increased capital expenditure on assets.

Profitability Surges Amid Cost Pressures

• Profit Before Tax (PBT) climbed to N12.46 billion, rebounding from a N1.02 billion loss in 2023.
• Net Profit After Tax (PAT) stood at N10.41 billion, a turnaround from a loss of N750 million in 2023, reinforcing the Group’s improved profitability and growth strategy.
• Income tax expenses amounted to N2.05 billion, compared to a tax credit of N270 million in 2023.

Key Takeaways

1. Strong Revenue Growth – Gross earnings surged 85% y-o-y to N83.2 billion, fueled by investment income growth and improved operational performance.
2. Turnaround in Profitability – The Group rebounded from a N1.02 billion loss to a N12.46 billion PBT, highlighting effective financial restructuring.
3. Investment Returns Drive Expansion – Net investment income rose to N21.71 billion, showcasing improved investment strategy and returns.
4. Higher Cost Base Due to Expansion – Personnel and operational costs increased, but strong revenue growth sustained profitability momentum.