Consolidated Earnings Surge on Investment Income
VFD Group Plc, a leading principal investment company listed on the Nigerian Exchange Limited, has released its unaudited consolidated and separate financial statements for the six months ended 30 June 2026. The results reflect a successful transition from a capital raising phase to translating investments into sustainable earnings growth.
The Group recorded gross earnings of ₦53.71 billion, representing a 30.5% year-on-year increase. Profit Before Tax increased by 98.4%, while Profit After Tax doubled by 100.8% to ₦10.06 billion, demonstrating strong operating leverage.
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 as total income outpaced the growth in operating costs, interest expenses, and impairment charges.
Parent Company Balance Sheet and Debt Reduction
At the parent company level, gross earnings increased by 62.5% to ₦23.87 billion, while Profit Before Tax surged by 295% to ₦5.95 billion. Company Profit After Tax grew by 328% to ₦5.03 billion, highlighting significant improvements in capital allocation and treasury management.
The parent company's balance sheet strengthened considerably during the period. Shareholders' funds more than doubled to ₦91.02 billion, while 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.
Interim Dividend and Strategic Outlook
In line with the strong financial performance, the Board of Directors approved an interim dividend of 24 kobo (₦0.24) per ordinary share. This results in a total dividend payout of approximately ₦3.04 billion, reflecting confidence in the Group's earnings quality.
Mr. Nonso Okpala, Group Managing Director of VFD Group Plc, noted that profit grew more than three times faster than revenue due to disciplined capital deployment. He highlighted that earnings per share grew by 110% despite an enlarged share base following the rights issue.
Mr. Folajimi Adeleye, Executive Director of Finance, stated that the Group enters the second half of 2026 with its strongest capital position in history. Management priorities for the rest of the year include structured deleveraging, active portfolio management, and deploying capital into high-conviction strategic verticals.
