VFD Group Doubles H1 Profit to N10.06 Billion, Declares 24 Kobo Interim Dividend

VFD Group Plc reported a sharp improvement in profitability in the first half of 2026 with profit after tax rising 100.8 percent to N10.06 billion as higher investment income and improved operating leverage strengthened earnings.

The principal investment company recorded gross earnings of N53.71 billion for the six months ended June 30, 2026, representing a 30.5 percent year-on-year increase.

Investment and similar income remained the major earnings driver, increasing 30.2 percent to N49.13 billion and accounting for approximately 91.5 percent of the Group’s gross earnings during the period.

Profitability expanded substantially faster than revenue with consolidated profit before tax increasing 98.4 percent, while profit after tax more than doubled by 100.8 percent to N10.06 billion.

The performance reflects stronger earnings from VFD’s investment portfolio and improved operating leverage as growth in total income outpaced the combined increase in operating costs, interest expenses and impairment charges.

At the parent company level, earnings growth was even stronger.

Gross earnings increased 62.5 percent to N23.87 billion, while profit before tax surged 295 percent to N5.95 billion.

Profit after tax climbed 328 percent to N5.03 billion, reflecting improvements in capital allocation, treasury management and the company’s funding structure.

VFD also strengthened its balance sheet during the period, with shareholders’ funds more than doubling to N91.02 billion.

Borrowings declined by 7 percent to N116.18 billion from N124.9 billion at the end of December 2025 as the company deployed proceeds from its rights issue partly towards reducing debt and strengthening its capital structure.

The company said the combination of increased equity and lower leverage has improved its financial flexibility and capacity to pursue new investment opportunities.

Group Managing Director Nonso Okpala said the first-half performance demonstrated the benefits of disciplined capital deployment and the company’s focus on generating sustainable earnings from its investment portfolio.

According to Okpala, the benefits of the company’s rights issue are increasingly translating into financial performance with company-level pre-tax profit rising 295 percent, borrowings declining and shareholders’ equity more than doubling.

He also noted that earnings per share increased by 110 percent despite an enlarged share base, underscoring the improvement in shareholder returns.

Following the strong first-half performance, VFD Group’s Board of Directors approved an interim dividend of 24 kobo per ordinary share, translating into an estimated total dividend payout of N3.04 billion.

The company said the dividend reflects the Board’s confidence in the quality of its earnings, stronger capital position and long-term growth prospects.

Executive Director, Finance, Folajimi Adeleye, said VFD entered the second half of 2026 with the strongest capital position in its history, a materially lower cost of funding and a portfolio of high-quality earning assets.

Management said its priorities for the remainder of 2026 include further balance sheet optimisation through a structured deleveraging programme and disciplined deployment of capital into investment opportunities capable of generating attractive risk-adjusted returns.

The Group also plans to strengthen active portfolio management, improve capital allocation efficiency and develop its succession planning framework as it seeks to institutionalise its investment and management capabilities.

VFD Group operates a diversified investment portfolio spanning market infrastructure, capital markets, financial services and fintech, real estate and hospitality, and retail technology, with investments across Nigeria, Ghana and South Africa.