VFD Group Plc (NGX: VFDGROUP) has reported a near-doubling of profit for the first nine months of 2026, even as heavy borrowing costs continued to weigh on its earnings, according to its unaudited financial statements filed with the Nigerian Exchange for the period ended 30 September 2026.
The investment holding company recorded a profit after tax of ₦13.0 billion, up about 96 percent from ₦6.6 billion in the same period of 2025. Profit before tax rose roughly 92 percent to ₦15.3 billion from ₦8.0 billion. Earnings per share climbed to 75 kobo from 38 kobo a year earlier.
Gross earnings grew about 35 percent to ₦81.9 billion from ₦60.7 billion. Investment and similar income, the group’s main revenue line, rose to ₦75.1 billion from ₦49.2 billion. Net investment income, after investment-related expenses, increased about 59 percent to ₦72.2 billion.
Interest from placements reached ₦21.0 billion, while interest from debt instruments more than doubled to ₦10.9 billion. Fees and commission income rose to ₦4.5 billion from ₦1.2 billion. Operating profit before tax and finance costs stood at ₦58.5 billion, up from ₦39.9 billion.
Borrowing costs remained the largest drag on profitability. Finance cost rose to ₦43.3 billion from ₦31.9 billion, absorbing a large share of operating profit. Total borrowings stood at ₦169.6 billion at the end of September, up from ₦123.9 billion at the end of December 2025.
Operating costs also rose. Personnel expenses increased to ₦6.4 billion from ₦4.2 billion, while other operating expenses rose to ₦11.1 billion from ₦8.9 billion. The group’s impairment charge on financial assets, however, fell to ₦1.3 billion from ₦2.3 billion.
Total assets grew to ₦577.6 billion from ₦445.8 billion at the end of 2025. Investment in financial assets more than doubled to ₦217.1 billion, and funds under management rose to ₦142.5 billion.
Total shareholders’ funds rose to ₦130.0 billion from ₦69.6 billion at the start of the year, boosted largely by a rights issue that added about ₦47.5 billion to equity. Share capital rose to ₦6.3 billion from ₦3.8 billion. The group paid ₦6.2 billion in dividends to shareholders during the period.
Cash and cash equivalents fell to ₦33.6 billion from ₦79.5 billion at the end of December, as the group deployed funds into financial assets and repaid borrowings. Net cash from operating activities improved to ₦28.9 billion from ₦9.0 billion a year earlier.
The filing also shows changes in the group’s holdings. VFD Group raised its stake in Herel Limited to 91 percent from 85 percent and in Anchoria Asset Management to 67 percent from 54 percent. It also added a 65 percent holding in Product Studio Limited, while its stake in VFD Tech Limited, previously 95 percent, is now nil.
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