VFD Group Plc has announced a robust financial performance for the first quarter ended 31 March 2025, posting a pre-tax profit of ₦4.1 billion—marking a 35.45% increase from the ₦3.04 billion recorded in the same period last year.
The company’s impressive profitability was largely driven by a sharp 47.63% rise in investment income, which reached ₦18.69 billion. This growth was underpinned by higher earnings from interest on loans, placements, and real estate investments. Consequently, net investment income rose to ₦17.9 billion, representing a 42.07% year-on-year increase.
Despite the gains, investment expenses also climbed, reaching ₦703.6 million—of which ₦595.8 million was attributed to subcontracting costs related to haulage and logistics.
Other income for the quarter declined sharply by 76.59% to ₦603.3 million. Of this, ₦265.2 million was categorized under miscellaneous earnings, while ₦260.5 million stemmed from foreign exchange gains.
Net revenue for Q1 2025 rose by 26.75% to ₦18.6 billion, up from ₦14.7 billion in the same period of 2024. Total expenses, encompassing personnel, operating, and depreciation costs, climbed 20.51% to ₦4.7 billion. Even with this increase, the Group managed to grow its operating profit by 29.03% year-on-year to ₦13.9 billion.
However, finance costs—primarily related to borrowings—also grew, rising 24.75% to ₦9.8 billion. After accounting for these charges, the company closed the quarter with a pre-tax profit of ₦4.1 billion.
VFD Group's balance sheet also showed notable strength. Total assets climbed by 8.44% year-on-year to ₦320.6 billion, while retained earnings surged by 64.02% to ₦17.8 billion, reflecting the Group’s improving profitability and capital base.
Investors have responded positively to the company's performance. As of the close of trading on Friday, 2 May 2025, VFD Group’s stock was priced at ₦17.90, representing a substantial year-to-date gain of 142%.
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