Consolidated Performance and Investment Income
VFD Group Plc has released its unaudited consolidated and separate financial statements for the six months ended June 30, 2026. The results show a major increase in profitability across both the group and the parent company, driven by its investment-led growth strategy.
The group recorded gross earnings of ₦53.71 billion, representing a 30.5% year-on-year increase. Profitability grew at a faster pace, with Profit Before Tax increasing by 98.4% and Profit After Tax doubling by 100.8% to ₦10.06 billion. This demonstrates the group's ability to convert revenue growth into stronger shareholder returns.
Investment and similar income rose by 30.2% to ₦49.13 billion, accounting for 91.5% of gross earnings. This performance underscores the resilience of the group's investment-led business model. Total income outpaced the combined growth in operating costs, interest expense, and impairment charges, resulting in improved operating leverage.
Company Performance and Debt Reduction
At the parent company level, gross earnings increased by 62.5% to ₦23.87 billion. Profit Before Tax surged by 295% to ₦5.95 billion, while Profit After Tax grew by 328% to ₦5.03 billion. These results reflect the company's core strengths in capital allocation and treasury management.
The company's balance sheet also strengthened during the period. Shareholders' funds more than doubled to ₦91.02 billion. Meanwhile, borrowings declined by 7% to ₦116.18 billion from ₦124.9 billion as of December 2025.
Total assets were marginally lower than the December 2025 position. This change reflects the strategic deployment of proceeds from the group's rights issue to reduce debt and optimise its capital structure. The combination of higher equity and lower leverage has enhanced VFD's financial flexibility.
Dividend Declaration and Strategic Outlook
Reflecting the strong earnings performance, the board of directors has approved an interim dividend of 24 kobo (₦0.24) per ordinary share. This results in a total dividend payout of approximately ₦3.04 billion. The decision reflects the board's confidence in the group's earnings quality and long-term outlook.
Nonso Okpala, Group Managing Director of VFD Group Plc, stated that profit grew more than three times faster than revenue because of disciplined capital deployment. He noted that earnings per share grew 110% despite an enlarged share base, validating the benefits of the rights issue.
Folajimi Adeleye, Executive Director of Finance, added that the group enters the second half of the year with its strongest capital position in history and a lower cost of funding. Management's priorities for the rest of the year include continuing balance sheet optimisation, restructuring the operating model, and deploying capital into high-conviction strategic verticals.
