·         As Rights Issue fuels next phase of global expansion

Kayode Tokede

VFD Group Plc on Wednesday released its third quarter ended September 30, 2025 (Q3 2025) unaudited financial results, showing N7.99 billion profit before tax, about 61 per cent surge over N4.95 billion reported in the third quarter ended September 30, 2024.

From the profit and loss figures, the Group posted profit after tax of N6.63 billion in Q3 2025, representing an increase of 48.3 per cent from N4.47 billion in Q3 2024.  

The group’s gross earnings stood at N60.72 billion in Q3 2025, an increase of 35 per cent from N45.01 billion in Q3 2024, while net investment income closed Q3 2025 at N45.65 billion, about 45 per cent increase over N31.55 billion declared in Q3 2024.

The growth in net investment income was driven by robust subsidiary performance and disciplined capital deployment.

Operating profit, however, increased by 66per cent, supported by enhanced efficiency and cost optimization, while operating cashflow turned positive at N12.21 billion, underscoring improved earnings quality and disciplined asset-liability management practice.

The Group’s balance sheet remained resilient, with total assets growth of 30 per cent to N383.39 billion and shareholders’ equity rising 29 per cent to N71.50 billion, reflecting business expansion and prudent capital management.

The company, in a statement, said that its Debt-to-Equity ratio improved to 1.68x in Q3 2025 (2024: 2.07x), reflecting consistent accretion of internally generated capital and prudent balance sheet management.

The ongoing Rights Issue is expected to further strengthen capital position and overall balance. More so, the proceeds of the Rights Issue would help to deleverage the balance sheet, reduce funding cost, and ultimately enhance earnings growth and profitability.

 VFD Group sustained strong momentum in Q3 2025, reflecting continued focus on value optimization and portfolio enhancement in line with our drive to build a sustainable and scalable investment ecosystem.

“Across our subsidiaries, and portfolio of associate/investee companies, we continued to create symbiotic opportunities, unlocking inherent value and strengthening overall returns to shareholders.

“Looking ahead to Q4 and beyond, we are focused on executing our rights issue, advancing our strategic expansion plan, and scaling growth initiatives,” the company said in the statement.

The Group Managing Director, VFD Group, Mr. Nonso Okpala, in the statement highlighted that: “Our third quarter results reflect the compounding effect of disciplined execution: operational efficiency and effectiveness of our strategy. As we optimize our capital allocation and consolidate on our unique position to build a sustainable ecosystem, we are, more than ever, optimistic about our portfolio, with stylized 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 further noted: “Notwithstanding the complex environment, our cost-efficient strategy proved invaluable, as the cost-to-income ratio moderated 700 basis points to 30.4per 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.”

The Executive Director, Finance and Investor Relations, VFD Group, Folajimi Adeleye, also noted: “Our Q3 2025 results underscore the effectiveness of our strategy, highlighted by a 65.8per cent Year-on-Year surge in operating profit and a 61.4per cent 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.”

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