VFD Group reports N3bn in pre-tax profits Q1 2024

Alex Omenye
Alex Omenye

Leading proprietary investment company, VFD Group has released its financial statements for the first quarter of 2024, showcasing significant improvements in key financial metrics.

The company reported a revenue of N15.3 billion, a substantial increase from N6.6 billion in the same period in 2023, indicating a positive trend in its income generation capabilities.

Net investment income surged to N4.8 billion from N611 million in Q1 2023. Additionally, other income rose to N2.6 billion from N1.4 billion, reflecting the company’s diversified income streams.

VFD Group Plc achieved a profit before tax of N3.04 billion in Q1 2024, a dramatic rise from N220 million in Q1 2023. Net profit also saw remarkable growth, reaching N2.62 billion compared to N220 million in the previous year.

This impressive increase in net profit, despite rising expenses, highlights effective cost management and operational efficiency in a challenging environment.

Income Statement Analysis
– Gross Earnings: N15.35 billion (Q1 2024) vs N6.61 billion (Q1 2023) +132%
– Net Investment Income: N4.8 billion (Q1 2024) vs N611 million (Q1 2023) +685%
– Other Income: N2.6 billion (Q1 2024) vs N1.39 billion (Q1 2023) +86%
– Operating Expenses: N3.94 billion (Q1 2024) vs N2.08 billion (Q1 2023) +90%
– Profit Before Tax: N3.04 billion (Q1 2024) vs N220 million (Q1 2023) +1280%
– Net Profit: N2.62 billion (Q1 2024) vs N220 million (Q1 2023) +1090%
– EPS: N10.34 (Q1 2024) vs N1.16 (Q1 2023) +790%

Balance Sheet Analysis
– Total Assets: N261.91 billion (Q1 2024) vs N219.28 billion (Q4 2023) +19%
– Total Liabilities: N221.38 billion (Q1 2024) vs N186.75 billion (Q4 2023) +19%
– Shareholders’ Equity: N40.53 billion (Q1 2024) vs N32.53 billion (Q4 2023) +25%
– Retained Earnings: N12.89 billion (Q1 2024) vs N4.9 billion (Q4 2023) +163%

VFD Group Plc’s financial performance in Q1 2024 showcases balanced growth in revenue and net profit amidst rising operating expenses and liabilities. The company’s ability to manage costs effectively and expand its asset base while maintaining significant profitability is commendable.

Despite the robust performance, the company’s cash balance stands at a healthy N22.4 billion, even though it has a negative working capital amounting to N29.4 billion. A notable contributor to this quarter’s performance was “other investment income,” which rose sharply from N1 billion to N8.6 billion.

Additionally, revenue from a line item classified as “others” increased to N1.3 billion from N261 million in the same period last year. However, there were no detailed explanations provided for these line items.

Investors and stakeholders will be keenly observing how VFD Group Plc navigates these challenges and leverages its revenue growth to enhance profitability and shareholder value in the coming quarters.

VFD’s share price closed at N202.9 at the end of trading on Friday, remaining relatively stable over the past month.

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