VFD Group Reports N11.2bn Profit, Eyes Strategic Divestment

VFD Group Plc has reported a significant financial turnaround, posting a pre-tax profit of N11.2 billion for the full year ended December 31, 2024.

This comes after the investment and proprietary trading firm recorded a pre-tax loss of N1 billion in 2023, signalling a strong recovery driven by a surge in investment income and improved operating efficiency.

The group’s audited financials, recently filed with the Nigerian Exchange, reflect broad-based revenue growth and sharper focus on capital allocation. Total net revenue climbed to N70.9 billion, an 89.84 percent increase from the N37.3 billion reported in 2023. This was underpinned by a 97.95 percent rise in investment and similar income, which grew from N37.6 billion to N74.5 billion, reinforcing VFD’s earnings momentum in volatile market conditions.

“This result highlights the strength of our asset-light model and disciplined execution of our investment strategies,” said Mr. Nonso Okpala, Group Managing Director and CEO of VFD Group.

“Despite macroeconomic headwinds and rising finance costs, we achieved one of our strongest performances yet, thanks to tactical positioning in high-yield investment opportunities.”

Investment Income Surges, Operating Profit Doubles

VFD’s net investment income rose sharply by 95 percent year-on-year to N58.9 billion, while operating profit more than doubled to N48.8 billion, up 103.88 percent from the prior year’s N23.9 billion. These gains were achieved despite a spike in investment expenses to N15.5 billion, reflecting the group’s increasingly active participation in higher-risk, higher-yield assets.

Operating expenses also climbed, with total expenditure rising 64.68 percent to N22.1 billion, largely attributed to a N14 billion outlay in other operating costs. Nonetheless, this was offset by the group’s robust topline growth and improved cost-to-income dynamics.

However, finance costs, which mostly comprised interest expenses, increased to N37.5 billion, up from N25.3 billion in 2023, reflecting the broader impact of higher interest rates on borrowings and capital structure.

Strategic Divestment Approved: N7bn Stake in Atiat Limited

In a parallel development, VFD Group confirmed it received board approval to divest its N7 billion equity stake in Atiat Limited, a move the company describes as consistent with its capital reallocation strategy. While details of the transaction are yet to be disclosed, the group stated the decision was based on the need to “unlock value, recycle capital, and optimise the balance sheet.”

The divestment, according to market analysts, could signal VFD’s intent to deepen focus on higher-return sectors or support future acquisitions aligned with its long-term vision to become a leading alternative investment powerhouse in Sub-Saharan Africa.

As of April 2, 2025, VFD Group’s stock was trading at N51.90, delivering a year-to-date performance of 16.89 percent, outpacing its 2024 annual gain of 9.41 percent. The sharp rebound in profitability, combined with the group’s decisive strategic shifts, is likely to enhance investor confidence and strengthen the company’s valuation narrative.

With an expanding investment pipeline, the recent performance points to continue upside potential, provided the group maintains its earnings momentum and cost discipline amid a shifting monetary environment.