VFD group’s asset growth, strong liquidity drive 52% surge in earnings
By Esther Agbo
VFD Group Plc has demonstrated robust financial growth in the first half of 2024, with significant increases across key performance indicators.
The Group’s profit after tax reached N3.11bn, reflecting a strong financial position amid a challenging economic landscape.
In an official statement during the week, Managing Director, Nonso Okpala highlighted the Group’s impressive 35.4 per cent year-on-year growth in total assets, which climbed to N296.86bn from N219.28bn in December 2023.
This asset expansion underscores VFD’s strategic investments and robust asset management.
The Group’s gross earnings surged by 52.1per cent, amounting to N28.59bn compared to N18.79bn in the same period last year.
Okpala attributed this remarkable growth to effective operational strategies and the dedication of the VFD team.
“Our total assets reached an impressive N296.86bn. Gross earnings amounted to N28.59bn, a remarkable increase from N18.79bn in H1 2023,” he stated.
VFD Group also saw a notable increase in liquidity, with total cash and cash equivalents soaring by 138.2per cent to N19.94bn, a significant rise from N8.37bn as of December 2023 according to the executive Director of Finance, Risk, and Compliance, John Okonkwo.
This boost in liquidity positions the Group to capitalize on emerging opportunities and navigate market fluctuations with greater resilience.
The Group’s shareholders’ funds experienced substantial growth, increasing by 56.4per cent to N50.87bn from N32.53bn at the end of 2023.
Okonkwo, emphasized that this growth reflects the Group’s strong capital base and prudent financial management.
Looking ahead, Okpala expressed confidence in sustaining this growth trajectory, emphasizing plans to optimize performance through cost reduction strategies and exploration of new growth opportunities.
The Group’s focus on reducing the cost of funds and operating expenses remains a priority as it seeks to reinforce its market position.
He said, “As we move forward, we remain focused on optimising our performance by continually reducing the cost of funds and operating expenses.”
In June, VFD Group announced plans to raise an additional N30bn in capital, employing a mix of financial instruments including share issuance, loans, global depository receipts, and bonds.
This capital raise is aimed at further strengthening the Group’s financial base and supporting its expansion strategies.
As VFD Group continues to leverage its diversified portfolio, both Okpala and Okonkwo expressed optimism about maintaining the current momentum, underscoring the Group’s commitment to delivering value to its shareholders and stakeholders.
