VFD Group a multi-sectoral investment Company, listed on the main board of the Nigerian Exchange (NGX) has released its audited results for the full year ended December 31, 2024.
The Group recorded a profit before tax (PBT) of N11.25 billion compared with a loss sustained in FY 2023 amounting to N1.02 billion.
Also, the Group recorded Profit After Tax of N8.69 billion compared with Loss After Tax (LAT) in FY 2023 of N750million, and Total Comprehensive Income for the year 2024 was N13.41billion (FY 2023: N145 million).
The Group recorded gross earnings of N87.76 billion in FY 2024, a 94 percent increase relative to N45.36 billion achieved in FY 2023. Investment and similar income (84.96 percent of gross earnings), represents increase of 98 percent to N74.57 billion (FY 2023: N37.67 billion, 83.05 percent of gross earnings) driven majorly by incomes from divestments, interest income from treasury activities, loans, advances and placements, and dividend income.
Other income (10.56percent of gross earnings) represents growth of 161.68 percent to N9.26 billion (FY 2023: N3.54 billion, 7.81 percent of gross earnings), impacted majorly by income from logistics and hospitality businesses, fair value gain on investment property, and foreign exchange gains.
Nonso Okpala, Group Managing Director/ Chief Executive Officer, VFD Group said, “In 2024, the Group demonstrated a robust financial performance, underscoring the effectiveness of our investment strategy and the resilience of our business model. Strategic investments and divestments drove a significant increase in earnings and profitability during the year.”
He said, “We reinforced financial resilience, expanded our investment portfolio, and strengthened our governance framework, all while embracing digital innovation.
“A successful rights issue of N12.5 billion contributed to a remarkable 80 percent growth in our shareholders’ fund, reaching approximately N58.53 billion.
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“This substantial capital base, coupled with an improved leverage profile, positioned us for sustained growth and long-term financial stability. We also made significant strides in governance and sustainability, enhancing our risk management frameworks and ESG commitments to align with global best practices”.
He said, “Our diversified investments across financial services, fintech, asset management, real estate, logistics, capital markets, and so on, continue to drive sustainable revenue streams. Looking ahead to 2025, we are committed to capitalising on emerging opportunities across Africa and the Western World, while consistently delivering long-term value for our shareholders, leveraging innovation, strategic partnerships, and disciplined execution to sustain our market leadership”.
Share of Profit from Associates of N34.39 million constitutes 0.04 percent of gross earnings (FY 2023: N375.14 million, 0.83 percent of gross earnings). Net gains on financial assets at fair value of N3.90 billion constitutes 4.44percent of gross earnings (FY 2023: N3.37 billion, 7.42 percent of gross earnings).
The Group recorded net investment income growth of 95 percent to N58.98 billion (FY 2023: N30.25 billion), benefitting from investment and similar income. This resulted in net investment income margin of 79.10 percent (7910 basis points (bps) year-on-year (YoY), FY 2023: 80.30percent).
This resulted in basic earnings per share of N5.16/share compared with loss per share in FY 2023 of N2.59/share. Overall, the Group recorded return on average assets of 3.38 percent (FY 2023: -0.41percent) and return on average equity of 19.09 percent (FY 2023: -2.34percent).
Total assets stood at N295.67 billion (FY 2023: N219.28 billion) driven by: 20.38 percent decline in Funds Under Management (16.70 percent of total assets) to N49.38 billion (FY 2023: N62.02 billion, 28.28 percent of total assets); 2.01 percent decline in Investment in financial assets (17.25percent of total assets) to N50.99 billion (FY 2023: N52.04 billion, 23.73 percent of total assets); 159.82percent growth in Trade and other receivables (18.82 percent of total assets) to N55.66 billion (FY 2023: N21.42 billion, 9.8 percent of total assets); 44.52 percent growth in investment in Real Estate (8.40percent of total assets) to N24.83 billion (FY 2023: N17.18 billion, 7.84 percent of total assets).
Real estate remains a key part of VFD Group’s overall strategy. This increase was due to diversification strategy to increase investment in other portfolios such as real estate, logistics and hospitality businesses aside from financial assets.
Loans and Advances of N62.30 billion, increased of 218.94 percent (FY 2023: N19.53 billion). Total liabilities rose to N237.14 billion (FY 2023: N186.75 billion). Current liabilities, made up of funds under management, other liabilities, deposit liabilities and current tax liabilities, increased to N112.80 billion (FY 2023: N103.19 billion). Non-current liabilities which consist of borrowings and deferred tax liabilities increased to N124.34 billion (FY 2023: N83.55 billion).
Borrowings increased to N121.43 billion (FY 2023: N81.60 billion) mainly from commercial notes and private placement investments. Total equity increased to N58.53 billion (FY 2023: N32.53 billion) primarily due to the Rights issue during the year as well as positive movement in retained earnings.
The Rights issue was aimed at increasing the capital base of the Group to sustain its increased growth and strengthen its balance sheet.
