VFD Group Plc has posted a 61.4 per cent growth in profit before tax to ₦7.99 billion in the nine months of the year from ₦4.95 billion in the same period of the previous year.
It reported this in its interim financial statements for the period ended September 30, 2025, released on Wednesday, October 29.
A breakdown of the results shows a significant performance across the company’s profit lines.
Its gross earnings increased by 34.9 per cent to ₦60.72 billion and net investment income by 44.7 per cent to ₦45.65 billion.
Gross profit growth was driven by robust subsidiary performance and disciplined capital deployment.
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Its operating profit also increased by 66 per cent ₦39.85 billion, supported by enhanced efficiency and cost optimisation.
According to VFD Group, the growth reinforces the sustainability of earnings and its return to shareholders as the rights issue fuels its next phase of expansion.
The company also saw an increase in its net revenue performance, rising by 49.1 per cent to ₦54.97 billion.
While its operating profit jumped by 65.8 per cent to ₦39.85 billion, its profit after tax rose by 48.3 per cent to ₦6.63 billion.
A further breakdown of the results shows the investment firm posted an impressive 49 per cent year-on-year growth in operating income, reflecting cost efficiency gains and margin expansion.
Its debt-to-equity ratio reflects the company’s consistent accretion of internally generated capital and prudent balance sheet management.
The rights issue is expected to further strengthen the capital position and overall balance, as proceeds of the offer will help to deleverage the balance sheet, reduce funding costs, and ultimately enhance earnings growth and profitability.
The sustained momentum reflects continued focus on value optimisation and portfolio enhancement in line with its drive to build a sustainable and scalable investment ecosystem.
Other notable performances included that operating cash flow turned positive at ₦12.21 billion, underscoring improved earnings quality and disciplined asset-liability management practice,
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The group’s balance sheet remained resilient, with total assets up 30 per cent to ₦383.39 billion and shareholders’ equity rising 29 per cent to ₦71.50 billion, reflecting business expansion and prudent capital management.
In anticipation of improved performance in the fourth quarter and beyond, the company stated that it is focused on executing its rights issue, advancing its strategic expansion plan, and scaling growth initiatives.
Committing to the results, the Group Managing Director, Nonso Okpala, said, “Our third quarter results reflect the compounding effect of disciplined execution: operational efficiency and effectiveness of our strategy. As we optimise our capital allocation and consolidate our unique position to build a sustainable ecosystem, we are, more than ever, optimistic about our portfolio, with stylised exposure to key growth sectors.
“The diversification of our portfolio offers a unique blend of growth and resilience, especially as we increasingly leverage scale and scope economies to enhance the group’s profitability and overall returns to shareholders.”
He maintained that the complex environment and the company’s cost-efficient strategy proved invaluable, as the cost-to-income ratio moderated 700 basis points to 30.4 per cent.
“We are consolidating on our stronger footing to fund only the best risk-adjusted opportunities, deploying our capital and liquidity towards assets capable of generating alpha returns. Most notably, the Bvndle Rewards Festival, as our fintech and loyalty subsidiary, Bvndle, continues to demonstrate strong growth momentum and unicorn potential within our portfolio,” Okpala stressed.
Its Executive Director of Finance and Investor Relations, Folajimi Adeleye, added, “Our Q3 2025 results underscore the effectiveness of our strategy, highlighted by a 65.8% year-on-year surge in operating profit and a 61.4% rise in profit before tax, reflecting strong cost efficiency gains and margin expansion.
“We are committed to financial prudence, as evidenced by the improvement in our debt-to-equity ratio of 1.68x. The ongoing rights issue will further solidify our capital base, support deleveraging, and position us for sustained, profitable growth.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
