… as investment-led growth drives strong earnings

VFD Group has achieved a Profit After Tax (PAT) of N10.06 billion in its unaudited consolidated and separate financial statements for the six months ended 30 June 2026, representing an increase of 100.8 per cent.

Its gross earnings also rose to N53.71 billion during the period1, representing a 30.5 pee cent year-on-year increase, supported primarily by the strength of its investment portfolio.

According to the firm, the group Profit Before Tax (PBT) also increased by 98.4 per cent. The increase in profit demonstrates the Group’s ability to convert revenue growth into stronger shareholder returns.

The firm noted that the results reflect the successful execution of VFD’s long-term capital allocation strategy and mark a transition from a capital raising phase to one focused on translating investments into sustainable earnings growth.

In addition, the investment and similar income rose by 30.2 per cent to N49.13 billion, accounting for 91.5 per cent of gross earnings, underscoring the resilience of the Group’s investment-led business model.

The Group’s total income outpaced the combined growth in operating costs, interest expense and impairment charges, resulting in improved operating leverage and stronger earnings retention.

The company results provide a clear reflection of VFD’s core strengths in capital allocation, treasury management and disciplined funding of the Group.

Gross earnings increased 62.5 per cent to N23.87 billion, while PBT surged by 295 per cent to N5.95 billion. PAT also grew by 328 per cent to N5.03 billion, highlighting the significant improvement in profitability.
The company balance sheet also strengthened considerably during the period. Shareholders’ funds more than doubled to N91.02 billion while borrowings declined seven per cent to N116.18 billion from N124.9 billion as of December 2025.

Total assets were marginally lower than December 2025 position, reflecting the strategic deployment of the proceeds from the Group’s rights issue to reduce debt and optimise its capital structure.
The resulting combination of higher equity and a lower leverage has enhanced VFD’s financial flexibility and positioned it to pursue future investment opportunities from a stronger balance sheet.

Commenting on the results, Group Managing Director of VFD Group Plc, Nonso Okpala said: “The first half of 2026 performance demonstrates the value of disciplined execution in a market that continues to reward thoughtful execution. Profit grew more than three times faster than revenue because we remain focused on deploying capital only where risk-adjusted returns justify it, while ensuring the businesses within our portfolio convert that capital into sustainable earnings rather than simply increased activity.

“We told the market that the benefits of the rights issue would ultimately be reflected in earnings, and these results clearly validate that expectation.
” Company-level PBT increased by 295 per cent, borrowings declined, shareholders’ equity more than doubled and earnings per share grew 110 per cent despite an enlarged share base. Those are the outcomes we believe matter most, and they are the standards by which we expect to be measured.

“These results are not only a validation of our strategy but also demonstrate our commitment to rewarding shareholders as the business continues to grow.
“Reflecting the strength of our earnings and confidence in our outlook, the board has approved an interim dividend of 24 kobo per ordinary share, balancing immediate shareholder returns with continued investment in the Group’s long-term growth opportunities.”
On the financial performance, Executive Director, Finance said: Folajimi Adeleye,

“We indicated after the first quarter that the full impact of the rights issue had yet to be reflected in our financial performance, and that the next phase of growth would be more pronounced. The first half results demonstrate that transition.

“We enter the second half of the year with the strongest capital position in the Group’s history, a materially lower cost of funding, and a portfolio of high-quality earning assets. Our priority now is straightforward: ensuring that every Naira of new capital consistently generates returns that exceed the cost of the debt it replaced.”

In line with the Group’s strong financial performance and commitment to delivering sustainable shareholder value, the Board of Directors has approved an interim dividend of 24 kobo (N0.24) per ordinary share, resulting in a total dividend payout of approximately N3.04 billion. This action reflects the Board’s confidence in the Group’s earnings quality, capital position and long-term growth outlook.

Also, VFD enters the second half of 2026 with a stronger balance sheet, an enhanced leadership team and greater clarity on where sustainable value is being created across its investment portfolio.

Management’s priorities for the remainder of the year include: continuing balance sheet optimisation through a structured deleveraging programme; deploying capital only into clearly defined, high-conviction investment opportunities within the Group’s strategic verticals; restructuring the operating model to strengthen active portfolio management and improve capital allocation efficiency; and building a world class succession planning framework that embeds institutional capability and ensures execution excellence beyond individual leadership.

With a strengthened financial position, disciplined investment approach and high-quality portfolio, the Group remains confident in its ability to sustain its growth trajectory and deliver even stronger performance in the periods ahead.