The VFD Group recorded considerable growths in income and profitability in the third quarter with the group’s pre-tax profit rising by 37 per cent to N5.1 billion within the nine-month period.
Key extracts of the interim report and accounts of VFD Group for the period ended September 30, 2022 showed that gross earnings grew by 43 per cent to N10.6 billion in third quarter 2022 compared with N7.4 billion recorded in the corresponding period of 2021. Operating expenses increased by 49 per cent to N5.7 billion from N3.8 billion. Profit before tax rose by 37 per cent to N5.1 billion in third quarter 2022 as against N3.7 billion in third quarter 2021. Earnings per share however dropped to N28.20 in third quarter 2022 compared with N36.43 in third quarter in 2021.
The balance sheet of the group improved with total assets jumping by 88 per cent to N165.5 billion in third quarter 2022 from N88.2 billion as at third quarter 2021. Total liabilities leapt by 84 per cent to N141.8 billion as against N77.2 billion in corresponding period of 2021. Shareholder’s fund doubled by 115 per cent from N11 billion to N23.7 billion.
Managing Director, VFD Group, Mr Nonso Okpala said the group’s result showed consistent growth and outstanding performance on all key financial indicators.
According to him, leveraging its clear strategy and management guidance, the group is well poised to continue delivering strong results and superior value to its stakeholders on the way to building Africa’s first truly diverse ecosystem.
“The business environment for the period we operated in has been challenging, with rising inflation, foreign exchange instability, and a slow pace of economic growth with a global recession on the horizon. Despite the economic headwinds, VFD Group showed outstanding resilience and delivered a profit before tax of N5.1 billion, signifying a year-on-year growth of 37 per cent.
“Going forward, we will continue to take advantage of the opportunities provided by a continually changing economic environment and leverage our ecosystem to promote efficiency, increase revenue and profitability, and ultimately maximize shareholders’ wealth,” Okpala said.
Executive Director, Finance, VFD Group, Folajimi Adeleye said the growth in income was due to growth in the group’s interest-bearing assets.
“As we approach year-end, we would continue to intensify measures to mitigate the impact of high inflation and promote better balance sheet efficiency by reducing our cost of funds, expanding our treasury trading activities, whilst seeking out ways to optimize cost,” Adeleye said.